State Senator Lou Correa, who represents Santa Ana and Anaheim, is quite pleased about the passage this week of SB 94, which “will protect vulnerable and distressed home owners from becoming victims of predatory mortgage scams,” according to a press release which I am enclosing below.
“The bill abolishes the common practice in the loan modification sector of collecting advance fees prior to completing any loan modification services,” according to PR Web.
The merican Mitigation Law Group has established a California SB 94 fact page designed to educate homeowners. The information can be reached via the company’s home loan modification website at http://www.amlawgroup.net. Click “Resources” and then select “California SB 94” from the drop down.
State Senator Lou Correa Applauds Approval of Legislation to Prevent Loan Modifications Scams
For Immediate Release
October 13, 2009Contact:
Lina Hamilton (916) 651-4034
(FROM FILE: State Senator Lou Correa working in his Capitol Office)
(Sacramento, CA) — California State Senator Lou Correa (Orange County) issued the following statement in response to the signage into law of Senate Bill 94, introduced by Senator Ron Calderon (Montebello):
“I am very please that Governor Schwarzenegger signed SB 94 into law. This is a long-time needed legislation that will protect vulnerable and distressed home owners from becoming victims of predatory mortgage scams,” stated Senator Lou Correa. “I commend Senator Calderon for introducing this legislation that will give homeowners the tools to be protected against heartless and unscrupulous scammers,” Senator Correa concluded.
SB 94 prohibits loan modification service providers and other persons from charging advance fees to borrowers in connection with a loan modification. This measure requires those who wish to charge a fee for loan modification services to provide a notice to borrowers regarding other options available to the borrower. The new law also specifies that such notice shall be provided in the language in which the contract was negotiated or services were offered to the borrower, when such negotiation or offer was made in one of the foreign languages set forth in Section 1632 of the California Civil Code (Spanish, Korean, Vietnamese, Tagalog, and Chinese). SB 94 also makes provisions with fees from $10,000 up to $50,000 or criminal penalties up to one year in jail or both for the violation of this new law. This new law will take effect immediately.
Senator Correa is a co-author of SB 94. He represents the 34th Senate District, which includes the cities of Anaheim, Santa Ana, Garden Grove, Westminster, Stanton, Buena Park, and Fullerton.
Office of Senator Lou Correa, 34th District