CALPIRG Blog

Last week, the most comprehensive mortgage reform bill introduced this year in California passed its first committee.  AB 260 seeks to address some of the worst practices employed by the lending industry.

Incredibly, the lending industry, especially the brokers and realtors, showed up in force at last week’s hearing opposing the reforms.  Specifically, they are opposed to regulating kickbacks from banks for steering people into worse loans than they qualify for.  Also, they don’ t like being required to act in their client’s best interest. 

Despite the obvious problems with a unregulated lending industry there is still resistance to passing new rules to better manage the brokers and lenders.  For example, the Governor vetoed this exact legislation last year. 

The next step for AB 260 on its way back to the Governor’s desk is the Assembly Judiciary committee.