BILL ANALYSIS                                                                                                                                                                                                    �



                                                                      



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          |SENATE RULES COMMITTEE            |                   SB 900|
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                              UNFINISHED BUSINESS


          Bill No:  SB 900
          Author:   Leno (D)
          Amended:  4/26/12
          Vote:     21

           
          PRIOR VOTES NOT RELEVANT


           SUBJECT  :    Mortgages and deeds of trust:  foreclosure

           SOURCE  :     Author


           DIGEST  :    This bill states the intent of the Legislature 
          to enact legislation to amend the states foreclosure laws 
          to implement and make permanent the servicing standards and 
          other provisions of the National Mortgage Settlement. 

           Assembly Amendments  delete the Senate version of the bill 
          dealing with California regional water quality control 
          boards.  This bill now deals with the state's foreclosure 
          laws.

           ANALYSIS  :    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 2010 as media 
          stories highlighted widespread allegations regarding the 
          use of "robo-signed" documents used in foreclosure 
          proceedings around the country.  The attorneys general 
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          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. 

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  No   
          Local:  No


          DLW:mw  4/30/12   Senate Floor Analyses 

                       SUPPORT/OPPOSITION:  NONE RECEIVED

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