From: Mann, John [John.Mann@asm.ca.gov]
Sent: Tuesday, September 01, 2009 5:21 PM
To: Wasserman, Jim - Sacramento
Subject: Revised: Nava's Mortgage Fraud Prevention Measure Passed by State Senate-Legislation Will Stop Loan Modification Scams
Jim-We have made a couple of minor changes to the announcement.  Please use this one.  Thanks.  John 
 
                                                                     

FOR IMMEDIATE RELEASE                                                                                                      CONTACT: John D. Mann

September 1, 2009                                                                                                                           (916) 718-7420

 

Nava’s Fraud Prevention Measure Passed by State Senate

Legislation Will Stop Loan Modification Scams

 

Assemblymember Pedro Nava (D-Santa Barbara), Chair of the Assembly Banking & Finance Committee, announced that his legislation to crackdown on loan foreclosure rip-offs was approved by the State Senate today on a 21 to 16 vote.

 

California families face a barrage of solicitations making promises to modify their home loans while collecting advance fees for little or no result,” said Nava.  “My legislation will end these scams and ban the collection of advance fees.”

 

AB 764 (Nava), the Homeowner Fraud Prevention Act, will ban the collection of all advance fees for modifying a loan.  This will ensure that homeowners receive a modification before paying.  Violations will be subject to a fine of $20,000 for an individual and $60,000 for a corporation and up to one year in county jail.  AB 764 will also ban false and misleading advertising by individuals and companies that offer loan modification services

 

Norma Garcia of the Consumer's Union said, “Californians desperately need the protections of AB 764.  According to recent figures, there are over 92,000 foreclosure properties in California which represents 1 in every 144 households.  AB 764 will protect these homeowners from becoming easy prey to those who divert the homeowners away from legitimate sources of free help and charge them thousands of dollars in advance fees for promises that can’t be delivered."

 

"When a family faces the loss of their home, they are desperate for help, making them easy targets for those who seek to profit from their misfortune. AB 764 will protect our members and all Californians from unscrupulous foreclosure consultants and help them find real help to try to prevent foreclosures," said Caitlin Vega of the California Labor Federation. 

 

AB 764 is supported by several consumer and labor organizations including the California Public Interest Research Group, the California Reinvestment Coalition, AARP, Center for Responsible Lending and the California Labor Federation. 

 

“I am honored to be partnering with consumer advocates and labor groups to bring about much needed consumer protections and reforms,” Said Nava.

 

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