In the historic $25-billion mortgage settlement reached earlier this year with the nation's five biggest banks, California is one of the states that's expected to receive the largest amount of the money. However, federal housing chief Shaun Donovan feels that in order to make reforms reached in that agreement lasting and permanent, California State Legislators need to pass a series of bills backed by California Attorney General Kamala D. Harris.
Shaun Donovan thinks that passing a Homeowners Bill of Rights for California is a very important step to help ensure that there will not be any future foreclosure abuses.
Donovan said Tuesday while speaking at the FAME Assistance Corp., an economic development agency in South Los Angeles, "We cannot let homeowners suffer in the way that we found in our investigations. Because foreclosures and other processes around homeownership are directed by state law, it is critical that a Homeowner Bill of Rights move forward."
California Attorney General Harris has backed a series of bills that would restrict practices such as foreclosing on homeowners while they negotiate a loan modification and that troubled homeowners have a single point person to work with at the bank rather than getting someone different each time they call.