BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 900
                                                                  Page  1

          (  Without Reference to File  )

          SENATE THIRD READING
          SB 900 (Leno)
          As Amended  April 26, 2012
          Majority vote

           SENATE VOTE  :  vote not relevant
            
           ENVIRONMENTAL SAFETY                APPROPRIATIONS              
                    (vote not relevant)              (vote not relevant) 

           SUMMARY  :  States the intent of the Legislature to enact 
          legislation to amend the state's foreclosure laws to implement 
          and make permanent the servicing standards and other provisions 
          of the National Mortgage Settlement.

           FISCAL EFFECT  :  Unknown

           COMMENTS  :  On April 6th, a federal judge signed-off on the 
          $25-billion foreclosure settlement, first announced in February 
          of 2012, between banks (Citi, Wells Fargo, Bank of America, 
          Chase and Ally), federal agencies, and the state attorneys 
          general from 49 states and the District of Columbia.  The 
          investigation began in October of 2010 as media stories 
          highlighted widespread allegations regarding the use of 
          "robo-signed" documents used in foreclosure proceedings around 
          the country.  The attorneys general formed working groups to 
          investigate the widespread allegations, however, further 
          investigation led to a larger discussion with the five largest 
          mortgage loan servicers regarding various facets of the 
          foreclosure and loan modification process.  While conducting 
          their investigation the attorneys general identified deceptive 
          practices regarding loan modifications, foreclosures occurring 
          due to the servicer's failure to properly process paperwork, and 
          the use of incomplete paperwork to process foreclosures in both 
          judicial and non-judicial foreclosure cases.

          For a detailed look at the complaint and resulting settlement, a 
          full list of documents can be found at:  
           http://www.nationalmortgagesettlement.com/  .



           Analysis Prepared by  :    Mark Farouk / B. & F. / (916) 319-3081 








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