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News & Press: Sacramento Report

Homeowner Bill of Rights Headed Towards Reinstatement

Tuesday, August 21, 2018  
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The California Homeowner Bill of Rights (HBOR) was signed into law in 2012 as a response to the foreclosure crisis, but much of the law then expired on January 1, 2018. The law is now headed towards reinstatement, with the passage of Senate Bill 818 by the California legislature yesterday. Senate Bill 818 will now be sent to Governor Brown for his signature.

Senate Bill 818 is co-sponsored by the National Housing Law Project and Housing & Economics Rights Advocates. A prior CLTA eNews article pointed out how portions of the original HBOR had expired. Opposition to the renewal was removed by amendments that 1) allow a mortgage servicer to satisfy the telephonic due diligence outreach requirements under existing law if the borrower provides a written notice requesting the mortgage servicer cease communication relative to the mortgage loan account; 2) establish that no application will be deemed complete if all documents required by the mortgage servicer are not received more than five business days before any scheduled foreclosure sale. The legislature also added uncodified sections to the law to make sure that the repeal resulting from the January 1, 2018 sunset of the prior law was not meant to extinguish pre-existing claims. Out of an abundance of caution, the savings clause also applies prospectively.

California Land Title Association

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