Posted by 101livescan on 7/12/12 11:45pm
Msg #426607

Gov. Brown Signs Homeowner Bill of Rights

Designed to help protect homeowners from abusive loan servicers tactics. Has some real teeth in it. Well, let's see how it goes.

California Bill of Rights:

-Bans Dual Tracking: Banks won’t be allowed to foreclose on a home while the homeowner is pursuing a loan modification.

-Requires one single point of contact at the mortgage provider.

-Allows homeowners to sue for significant violations

-Increases penalties for robo-signing: Which is automatic approval for foreclosure without reading the documents.

California is the first state to adopt such a law and it has it’s skeptics.

“I think it’s good that they passed the California Bill of Rights,” former bank executive, Candice Jones said. “Unfortunately we do need to know who moderates it and who oversees it to make sure it does get done.”

Jones is a Santa Barbara resident who is fighting back against the banks helping families and individuals keep their homes. She fears that the new law could lead to an increase in foreclosures before January.

“They’re (banks) going to do the same thing they did after the Attorney General’s settlement was signed, speed up foreclosures and get as many done as possible before they get caught,” Jones said.

One of the tactics the California Bill of Rights will protect the homeowner against is robo-signing. Jones says thousands of fabricated documents are being robo-signed and recorded at the Santa Barbara Courthouse everyday.

Joe Holland is the Santa Barbara County Clerk, Recorder and Assessor. His office is responsible for recording foreclosure documents with the court. Jones believes Holland has a legal responsibility and a duty to make sure those documents are true and accurate before they are turned over to the court.

Holland told KEY News that his office does not know which documents are robo-signed and that the newly signed law does not impact the way his office does business.

Homeowner Marina Reed says the County Recorders Office needs to do more to protect from fraudulent foreclosure documents being recorded.

“It is the documents that go through his department that the banks are then using against the homeowners in court,” Reed said.

California has nearly a million foreclosed homes and another 700,000 are at risk.

Reply by Clem/CA on 7/13/12 12:19am
Msg #426610

Not sure if it is Joe's Job to "police" the notaries or just to record what is given to him. I would think the office responsible would be the SOS as notaries are under their control. If “It is the documents that go through his department that the banks are then using against the homeowners in court,” then the office and notaries responsible for those documents should be held accountable, not the man ( office) just doing his, (their), job as recorder. I Don't know, what do you think? (Disclaimer, I know Joe and he is a very honest, straight up guy!, I worked with him in the 70's... in a different field)

Reply by Lee/AR on 7/13/12 12:37am
Msg #426613

I'm in Arkansas--what do I know about CA, but it sounds like an ignorant law to me. County Recorder 'records'...not responsible to verify signatures of anyone. Robo-signing is 'automatic approval for foreclosure'? Really? I think not.

Geez...bash the lenders--who knew exactly what they were doing when they sold these toxic loans on the secondary market; not the Recorder who IS doing his job.

Reply by JanetK_CA on 7/13/12 3:54am
Msg #426618

Lee, I'm guessing you just skimmed the article...

According to Cheryl's post, the law just says there are penalties for robo-signing. The reference to the Recorder's office being responsible (which I agree doesn't make any sense) was from Jones, the woman ex-banker. I imagine she means well, but I agree that the banks should be responsible and it's my guess that that's what this law says, as well.

At first blush, this sounds to me like a good step in the right direction

Reply by Susan Fischer on 7/13/12 1:16am
Msg #426617

Great news, and best news of the day. I like the teeth part. n/m

Reply by ArtG/KS on 7/13/12 9:43am
Msg #426639

If no one in the chain or flow of documentation practices due diligence or good performance, we would see things get very nasty. Register of Deeds should verify what is being recorded or else we all face mortgage fraud or outright theft. Documents in my most humble opinion must be original and hand signed for validity and then steps taken to ensure the authenticity.

There was an IT expert who said during a Congressional hearing that he does not even practice on line banking due to lack of internet security. For that very reason I question those states using electronic notarizations as well. The door to good security seems to be closing and the door to more fraud gets opened wider every day. One 'bad apple' in the flow causes fraud.

Reply by ikando on 7/13/12 4:37pm
Msg #426713

If nothing else is accomplished, if they follow "-Requires one single point of contact at the mortgage provider" (I'm assuming per customer, not one for everybody), it will make life easier for everybody.