SAN FRANCISCO (KCBS) -- Californians facing rising mortgage payments would be able to require their bank to submit to mediation if they are facing foreclosure, under legislation in the Assembly.
Banks have complained the bill by Santa Barbara Democrat Pedro Nava duplicates provisions of the Obama administration’s “Making Home Affordable” program.
Nava said the difficulty many homeowners face even getting their lenders on the phone underscores the need for the California mediation program.
“My bill would compel a lender and a homeowner borrower to sit down at a table face to face with a mediator to work something out. That would be a huge improvement,” he said.
KCBS' Tim Ryan report
Foreclosures over the past year-plus have hit peaks and valleys with another peak expected soon when variable rate mortgages adjust.
Nava expects to finalize his bill for a vote sometime in January when lawmakers return to Sacramento. It’s still not clear who will pay the mediators.
(jro)
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