ASSEMBLYMEMBER KAREN BASS
47TH ASSEMBLY DISTRICT
For Immediate Release: June 30, 2008
Contact: Richard Stapler
Phone: (916) 319-2047

Sacramento—On a bipartisan 55-18 vote, the State Assembly today passed Senate Bill 1137 (Perata) to reform the home foreclosure process. 

“Home foreclosures are raging across California -- from San Diego to Shasta County. The crisis is real and it is the responsibility of the State Legislature to protect homeowners,” said Assembly Speaker Karen Bass (D-Los Angeles) who is a principal co-author of the bill with Senate President Pro Tem Don Perata (D-Oakland). “The passage of SB 1137 shows that states have the right and ability to regulate how lenders can do business.”

SB 1137 improves communication between lenders and borrowers and broadens the ability to modify mortgage terms.

“The state legislature sent the strong message today that we need to go further than federal law to help homeowners, and that doing nothing is not an option,” said Rules Committee chair and former Assembly Banking and Finance Committee chair Assemblymember Ted Lieu.

Recent legislation passed out of the Assembly targeted certain types of mortgage products and the general rights of consumers.

Speaker Bass continued: “I look forward to both houses continuing in their pursuit of good policy that addresses the needs of homeowners. California, along with New York and North Carolina, will continue to make strides in protecting consumers. We cannot continue to rely only on federal regulations, particularly for something as important as home mortgages.”