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News & Press: Sacramento Report

Assembly Banking Committee Passes CLTA-Sponsored Legislation Extending HELOC Reform

Tuesday, June 19, 2018  
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CLTA-sponsored legislation in the form of SB 1139 (Morrell), which would indefinitely extend home equity line of credit (HELOC) reforms that standardize the written notification process for the easy closing of HELOCs during escrow, passed unanimously out of the Assembly Banking and Finance Committee yesterday. 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
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