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News & Press: Sacramento Report

CLTA Sponsors Legislation Extending HELOC Reform

Tuesday, February 20, 2018  
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CLTA has sponsored legislation, SB 1139 (Morrell), to indefinitely extend home equity line of credit (HELOC) reforms originally enacted in 2014. The reforms standardized the written notification process to enable accurate payoffs of HELOCs during escrow. The reforms combat fraud and unintended misuse by prohibiting an original borrower, who no longer owns a home, from drawing on, increasing, or incurring any new additional principal debt on the equity line of credit.

CLTA sponsored the original bill enacting the reforms, AB 1770 (Dababneh), in 2014. Under existing law, the provisions enacted by AB 1770 are set to expire July 1, 2019.

California Land Title Association

1215 K Street #1816 Sacramento, CA 95814-3905
Email:  |  Phone: 916-444-2647  |   Fax: 916-444-2851