The Whittier Daily News reports that the legislation will go into effect Jan. 1, 2013, and is designed to protect California homeowners during the loan modification and foreclosure process. The legislation requires that lenders designate a single point of contact for borrowers and verify all loan documents, and it also bans the ‘dual tracking’ process where lenders promise to help a borrower while simultaneously proceeding with a foreclosure.
‘This is a very important day to sign a very important bill to clean up at least part of the mess that has been created by all sorts of people in the mortgage, banking and services business that have caused untold suffering for millions across this country and even millions in California,’ Brown said during the signing ceremony.
State Attorney General Kamala Harris echoed the governor's hopes for the new law.
‘Today we are here to say we're done,’ Harris said. ‘We're done with dual track, we're done with the runaround, we're done with the okey-doke, we are done with robo-signing, we are done with abusive tactics and empty promises.’