Calif. Democrats Propose Statewide Foreclosure Reforms

Law360, New York (June 25, 2012, 3:12 PM EDT) -- Democrats in California's state legislature have introduced a draft bill that would reform the state's mortgage industry in an effort to combat a continuing spate of foreclosures in the state, lawmakers announced Friday.

The bill, known as the Homeowner Bill of Rights, would prohibit so-called dual track foreclosures by barring banks and other lenders from foreclosing on properties while loan modification applications are pending. It would also impose a civil penalty of up to $7,500 per loan for banks that improperly file foreclosure documents without reviewing...
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