FOR IMMEDIATE RELEASE
Contact:
Joseph Rendeiro
(202) 776-1566
jrendeiro@nclr.org
NCLR, Latino Leaders Urge Latino Caucus Members to Support Foreclosures Bill
SACRAMENTO, Calif.—On Wednesday, California’s joint legislative conference committee passed the “California Foreclosure Reduction Act (AB 278 / SB 900),” one of the central elements of the “California Homeowner Bill of Rights,” setting the stage for an all-important floor vote on this crucial piece of legislation on Monday. NCLR (National Council of La Raza) urges the state legislature, especially the Latino Caucus, and the Governor to pass this bill and ensure that strong protections are in place so that California’s homeowners do not lose their homes to unfair banking practices.
The act specifically includes strong enforcement measures that will finally put an end to the unfair “dual track” process. Dual tracking is a common bank practice of moving a homeowner through both the foreclosure and loan modification processes at the same time, causing many borrowers to lose their homes even while they are still being considered for a loan modification.
“The housing crisis has decimated the wealth of California’s Latino community; in fact, Latinos have suffered almost half of all foreclosures in the state,” said Delia de la Vara, Vice President for the California Region, NCLR. “California’s legislature has to decide whether they are going to allow this crisis to continue wreaking havoc on the state’s economy, or whether they are going to put an end to this unfair banking practice and save hundreds of thousands of Californians from losing their homes.”
NCLR applauds the fantastic work that its California Affiliates and a number of allies—including California Attorney General Kamala Harris, Sen. Ron Calderon (D–Montebello), the Center for Responsible Lending, and the California Reinvestment Coalition—have done to secure the passage of this bill which will provide much-needed relief to thousands of homeowners in California, one of the hardest-hit states in the housing crisis.
“The measure provides historic protections for homeowners against some of the more heartless practices employed by lenders during the foreclosure crisis, like dual tracking,” said Calderon in a press statement. “Like no other foreclosure-prevention program before it, state or federal, the Homeowner Bill of Rights allows a borrower to sue for injunctive relief and damages if their lender has broken the law.”
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