MAA Issues ‘Call to Action’ Against California Legislation

The ""Mortgage Action Alliance, Inc.,"":http://www.mbaa.org/Advocacy/MortgageActionAlliance (MAA) issued a “call to action” Thursday to fight legislation it said would cause “serious damage” to lenders, servicers, and California’s economy.

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The MAA, an advocacy branch of the ""Mortgage Bankers Association"":http://www.mbaa.org/default.htm (MBA), issued the call in support of the ""California MBA’s"":http://www.cmba.com/ efforts to stop the legislation.

The bill in question would amend California’s foreclosure laws to implement and permanently set servicing standards and other provisions of the ""settlement"":http://dsnews.comarticles/historical-25b-settlement-approved-by-federal-judge-2012-04-06 between the country’s attorneys general and the five largest mortgage servicers. It is currently under review by the six-member Legislative Conference Committee on the California Foreclosure Crisis.

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The California MBA’s opposed the legislation, calling the bills “highly flawed” and asserting that they would not accomplish their objectives. According to the MAA’s call to action, “consumer costs will increase and force California families to pay more for fewer choices. If enacted, the legislation also has great potential to seriously damage lenders, servicers, and the fragile state economy.”

The call also said that some pieces of the legislation included vague wording that would “ignite a new wave of lawsuits against mortgage lenders and servicers.”

“In order for the real estate market and our national economy to recover, it is vital that we support efforts to restore certainty to the mortgage market while avoiding an overreaction that causes harm down the road,” the release said. “Unfortunately, these bills work contrary to that goal and would harm the California economy by sharply curtailing consumer choice and costing the state jobs.”

A summary of the legislation can be found ""at this link"":http://abnk.assembly.ca.gov/sites/abnk.assembly.ca.gov/files/Summary%20of%20foreclosure%20mitigation%20language%20Final%20%283%29.pdf.