FOR IMMEDIATE RELEASE CONTACT: John D. Mann
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.
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
"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.