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Saturday, June 20, 2009

California Foreclosure Prevention Act: Many Lenders Exempt

by Calculated Risk on 6/20/2009 08:57:00 AM

From the Sacramento Bee: 7 lenders get immunity from state foreclosure prevention act

Bank of America Home Loans, CitiMortgage and Carrington Mortgage Services are among the first seven lenders and loan servicers granted immunity from the state's foreclosure prevention act launched this week in California.

The new law makes lenders prove to the state that they have a comprehensive loan-modification program that helps borrowers stay in their homes. Those that can't prove it to the state's satisfaction must wait an extra 90 days before foreclosing on borrowers.
State agencies reported Friday that 38 institutions received temporary 30-day immunity while the state reviews their applications. Among them were some of the Sacramento region's leading lenders, including Wells Fargo, GMAC and JPMorgan Chase.
From the California Department of Corporations: Mortgage Loan Servicers who have been granted an exemption

Exemptions under the Department of Corporations

Exemptions under the Department of Financial Institutions

Exemptions under the Department of Real Estate

This was never a big deal. Most lenders will be exempt.