The Mortgage Action Alliance Inc., the grassroots advocacy arm of the Mortgage Bankers Association (MBA), has issued a ‘Call to Action’ in support of the California Mortgage Bankers Association's efforts to defeat legislation it said would cause ‘serious damage’ to lenders, servicers and the state's economy.
According to the Mortgage Action Alliance, the legislation currently under review by the six-member Legislative Conference Committee on the California Foreclosure Crisis, would amend the state's foreclosure laws to implement and make permanent servicing standards and other provision of the recent settlement among states' attorneys general and the nation's five largest mortgage servicers. Furthermore, the alliance is also opposed to a pair of bills in the California legislature proposed by Attorney General Kamala Harris that are designed to expand legal avenues for homeowners seeking to sue their lenders and servicers.
The alliance's Call to Action warns that ‘consumer costs will increase and force California families to pay more for fewer choices. If enacted, the legislation also has great potential to seriously damage lenders, servicers and the fragile state economy.’ Additionally, the alliance panned Harris' proposed bills as ‘vaguely worded’ legislation that would result in ‘a new wave of lawsuits against mortgage lenders and servicers.’
‘In order for the real estate market and our national economy to recover, it is vital that we support efforts to restore certainty to the mortgage market while avoiding an overreaction that causes harm down the road,’ the Call to Action says. ‘Unfortunately, these bills work contrary to that goal, and would harm the California economy by sharply curtailing consumer choice and costing the state jobs.’