Posted: Jun 22, 2012 5:35 PM by CJ, The Associated Press
SACRAMENTO, Calif. (AP) - A California Mortgage Bankers Association spokesman says interest groups won't have enough time to scrutinize a new plan to regulate the state mortgage industry before a special legislative committee votes on it next week.
Dustin Hobbs says it's too early for his group to take a position on the draft legislation, which would bar banks from foreclosing on homes while loan modifications are pending, let homeowners sue mortgage providers who break state law and require lenders to provide a single point of contact to borrowers.
A California Bankers Association spokeswoman says her organization is reviewing the draft bill, but initially believes it's too broad and could allow frivolous lawsuits.
The plan is an extension of a national settlement that imposed new restrictions on the five largest U.S. banks.
Previous efforts to reform California's mortgage industry have stalled amid stiff opposition from banks and other lenders.
(Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)
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