CRL compares the dual track foreclosure restrictions and requirements in the National Mortgage Settlement, the California Homeowner Bill of Rights and related rules from the Consumer Financial Protection Bureau.

The California Foreclosure Reduction Act – SB 900 extends key protections of the National Mortgage Settlement to all mortgage servicers for owner-occupant borrowers at risk of foreclosure.

CRL challenges the unsubstantiated claims made by the California Bankers Association about the impact of the Foreclosure Reduction Act. The bill will reduce unnecessary foreclosures and improve the foreclosure process.

Although the national foreclosure crisis is now in its fifth year, it is far from over—particularly for California. The Center for Responsible Lending estimates that there are still nearly 700,000 California homeowners who are at least 30 days delinquent or in the foreclosure process. While not all of these impending foreclosures can or should be prevented, new CRL analysis sheds light on the impact of loan modifications on preventing avoidable foreclosures and how many and which Californians are at risk.

California is only halfway through the foreclosure crisis, with more than 670,000 California households at risk of foreclosure: Data from CRL’s report, Lost Ground, 2011 show that 9.3 percent of all loans originated between 2004 and 2008 – 581,000 – have already resulted in completed foreclosure, but that another 8.9 percent (549,000) were at immediate risk of foreclosure. At the end of 4Q 2011, more than 454,000 mortgage loans – or more than 1 in 14 – were past due (but not yet in foreclosure), while almost 217,000 loans were in the foreclosure process, bringing the total California loans at risk to approximately 671,000.

During the course of negotiations, the Joint Conference Committee on Mortgage Foreclosures has substantially narrowed the scope of the bill and limited the protections to borrowers relative to the version of the bills that were before the Assembly and Senate Banking Committees earlier this year. Here is a list of specific changes.

Quick facts on the impact of foreclosures on African Americans and Latinos in California.

Attorney General Kamala Harris is sponsoring a package of bills (the Homeowner Bill of Rights) designed to mitigate the foreclosure crisis and provide Californians with greater protections in the foreclosure process.

Summaries of three California homeowners who would be helped by SB 1275 and its impact on the loan modification and foreclosure processes.

Summary of SB 1275, a mortgage-related California bill addressing massive foreclosures and increasing reports of major problems with loan servicers.

SB 1275, a California mortgage lending bill addresses record foreclosures and problems with loan servicers.

CRL California policy analysis examines the role of the California legislature in addressing the foreclosure crisis.

The California Office of the Center for Responsible Lending prepared the following documents to help California's newest legislators navigate the predatory mortgage lending arena.

After years of industry-blocked efforts to strengthen lending standards, the growth in reckless lending and abusive practices has left California facing a foreclosure crisis with catastrophic consequences for families, California needs policy reforms to stem the tide of foreclosures, and to tighten lending standards to prevent a repeat of this foreclosure crisis.communities, and the California economy as a whole.

Overview of subprime and alternative lending market with focus on California

Testimony before California Senate Banking Committee

Problems of the subprime market and their impact on Californians and the state of California: testimony of Paul Leonard, Director of the California Office of the Center for Responsible Lending before the California Senate Banking Committee March 26, 2007.