California Attorney General Announces Passage of Bills to Allow More Prosecutions of Mortgage Fraud – NMP Skip to main content

California Attorney General Announces Passage of Bills to Allow More Prosecutions of Mortgage Fraud

May 25, 2012

California Attorney General Kamala D. Harris has announced seven bills in the California Homeowner Bill of Rights to protect homeowners from unfair practices by banks and mortgage companies passed out of Legislative committees. The bills include measures to protect tenants in the foreclosure process, allow local communities better remedies against blight and allow the Attorney General's office more power to investigate and prosecute mortgage-related crimes. "All Californians have been impacted by the toll the mortgage and foreclosure process has taken on our neighborhoods," said AG Harris. "Our California Homeowner Bill of Rights will provide relief for homeowners, tenants and communities. I thank the authors and supporters of these important bills." AB 2314 and SB 1472 would provide local jurisdictions with additional tools to fight blight from abandoned homes. These tools include increased penalties against the owners of blighted property, including the cost of taking control of that property. AB 2314 and SB 1472 unanimously passed the Assembly and Senate Judiciary Committees. Another bill is aimed at providing greater protections to California tenants. AB 2610 and SB 1473 would provide California tenants with the same protections that they are currently afforded under federal law. This legislation would require purchasers of foreclosed homes to honor the terms of existing leases and give tenants at least 90 days before commencing eviction proceedings. The bills passed the Assembly and Senate Judiciary Committees on a 7-3 and 3-2 vote, respectively. Two bills would provide additional tools for the Attorney General's office to investigate and prosecute mortgage frauds and crimes. AB 1950 would extend the statute of limitations on mortgage-related crimes, including loan modification scams and the unlicensed sale of real estate. This legislation would also provide the Attorney General's office with funding to prosecute these and other mortgage-related crimes through a $25 fee to be paid by servicers upon the recording of a notice of default. AB 1950 passed the Assembly Public Safety Committee on a 4-2 vote. AG Harris formed a Mortgage Fraud Strike Force last year to investigate and prosecute mortgage fraud. In August, the Strike Force filed its first suit against a law firm that took millions from desperate homeowners. AB 1763 and SB 1474 would allow the Attorney General to convene a special grand jury to investigate and indict the perpetrators of financial crimes involving victims in multiple jurisdictions. Both bills passed out of their houses' Public Safety Committees unanimously.
About the author
Published
May 25, 2012
California Approves $25B Homebuyer Loan Program, Targeting New Construction

Proposition 37 could open new purchase lending opportunities, but financing costs and borrower qualification will determine its reach

When AI Takes Action: New Federal Framework Raises Questions

New federal banking guidance examines the risks of autonomous AI, from borrower communications to servicing transactions, with a focus on human oversight and accountability

States Tighten Mortgage Rules For Home Equity Investments

Massachusetts, Maine, and Illinois are expanding oversight of home equity financing

West Capital LO Challenges Contractor Status, Required Fees

A former originator alleges unpaid overtime, recurring tech charges, and company restrictions that he says undermine his independent-contractor status

CFPB Closes 40% Of Investigations, Keeps Mortgage Enforcement In Focus

The federal watchdog closed thousands of supervisory and investigative matters as it narrowed oversight

Midterms Loom With Mortgage Policy Changes Already In Motion

As voters head to the polls Tuesday, Washington is weighing changes to refinancing costs, loan pricing, and lending regulations