Consumer finance companies should prepare for and understand the details and potential ramifications of the California Homeowner's Bill of Rights for their business.
The California Homeowner Bill of Rights (CA Homeowner Bills), signed into law on July 11, 2012, requires all mortgage servicers that service first lien consumer purpose residential mortgage loans with a California address to meet additional requirements intended to protect homeowners.
The bills will become effective January 1, 2013, leaving a window of less than three months for implementation of all requirements. These servicing standard reforms may mean significant changes to servicing practices for mortgage servicers that have not already adopted other regulatory requirements such as those found in the OCC mortgage servicing Consent Orders or NMS.
This viewpoint will help you to understand the key provisions of the bills and the potential ramifications on your company.