A California lawmaker has proposed legislation, that if passed, would require lenders in the state to publicly report their internal loss mitigation efforts.

California Assembly Member Ted Lieu (D-Torrance) is sponsoring the bill. David Ford, a spokesperson for Lieu's office, told DSNews.com on Tuesday that the purpose of the bill is to expand upon President George W. Bush's push for lender involvement in loss mitigation efforts nationwide by ensuring lenders are actively working with distressed borrowers.

“It's a matter of trust, but verify,” Assembly Member Lieu said. “If these programs are what they're supposed to be, the lenders should be proud to report this data and show what a good job they're doing. If they're not, we're going to shine a light on them.”

Lieu says the proposed law—Assembly Bill 69—would require lenders to send a report of their home retention efforts to the Department of Corporations each month, while the Department of Financial Institutions would receive reports from state licensed banks and credit unions.

“Foreclosures are bad for everyone—homeowners, lenders and the community,” said Lieu. “We need to make sure that lenders are doing everything possible to avoid them.”