CALPIRG Blog

After hard fought negotiations between the mortgage industry and consumer groups we have reached agreement on what should be in the comprehensive mortgage reform bill.  The qeustions taht remain are: Will the legislature pass the bill, and will the governor sign it?

One highlight of the reforms are a cap on the "exit tax" that banks charge borrowers for paying off a loan early (also known as a prepayment penalty).  A second step forward is a ban on the practice of steering or brokers making a loan that is more expensive that what the borrower qualifies for.

The next step will be the senate judiciary committee ,then the senate floor, the assembly floor, to the governor. 

In combination with the recently adopted federal regulations it is safe to say that these reforms will prevent a meltdown of this magnitude from hapening again. Below is a link to an LA Times editorial on the mortgage legislation. "Good News For California Housing"