Research & Policy

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...

As the nation struggles through the sixth year of the foreclosure crisis, there are no signs that the flood of home losses in America will recede anytime soon. California, through its African-American and Latino homeowners in particular, has and will continue to suffer dramatic losses of both homes and wealth, and will see an erosion of decades of socioeconomic progress in our communities. California is only halfway through the foreclosure crisis: 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...

California foreclosure statistics show record losses in recent years are likely to continue into the future On average, more than 500 California families have lost their homes every day since 4Q 2007, and the data show few signs of a return to the pre-crisis housing market. California foreclosure activity remains elevated, with more than 30,000 completed foreclosures each quarter, compared to less than 3,500 foreclosures in 3Q 2006. In addition, large numbers of California homeowners continue to fall behind in their payments, and would benefit from more effective policies to prevent avoidable...

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.

This case involves borrowers who purchased a vehicle through a dealership in California. The financial institution in question, Wachovia, did not make the loans, but later purchased the installment contracts from the dealer. When the borrower fell behind on their payments, Wachovia repossessed the cars without properly following California law. California allows self-help repossession, but has strict rules regarding consumers' rights in repossession, including the notices that a creditor must send to consumers.

Press Release Full Pollster's Report A brief poll conducted in November 2010 to guage public opinion of a potential moratorium and other land-use restrictions on paydy lenders in San Jose found that most voters hold an unfavorable view of payday lending; many would like to see stronger restrictions on payday lenders and most believe that the City of San Jose should regulate payday lenders where possible. According to the Poll Payday loan stores start with a bad reputation. Fifty-two (52%) percent of voters hold an unfavorable view of them. This is higher than the unfavorable ratings of both...

This color-coded map of payday stores by household reveals a disturbing pattern. Southern states are among the most targeted for these high-cost, low-dollar loans.

Read the full report (PDF) >> Read the executive summary (PDF) >> California and the United States are in the midst of the worst foreclosure crisis since the Great Depression. Across the country, foreclosures have hit an all-time high, with nearly one in ten homes with a mortgage currently in some stage of foreclosure. In California, nearly one in eight—or approximately 702,000 homes—is currently in foreclosure, the economy is in ruins and unemployment remains at 12 percent. This report paints a picture of the foreclosure crisis in California, examines the who, the where and the why of...

Summary of SB 1275 (As Amended 5-18-10) Section 2923.4: New Notice for Delinquent Borrowers on Foreclosure Process, Rights and Obligations Requires a state agency to create and translate a notice for delinquent borrowers that describes a borrower's rights and obligations, and outlines what to expect in the foreclosure process. (Specific text included in bill). Section 2923.5: Pre-NOD Determination for Loan Modification and Borrower Solicitation Requirements Pre-NoD Requirements. Provides that a servicer may not file a Notice of Default (initiating the foreclosure process) until all applicable...

Three servicers. Three California homeowners. Three avoidable foreclosures. Three Ways SB 1275 Would Help Stop the Foreclosures that can be Stopped Patricia and Manuel Mondoy, Hayward, Calif. Under SB 1275, GMAC would have been required to complete its evaluation of Patricia and Manuel M.'s loan modification before recording a Notice of Default. If GMAC had completed the evaluation process before initiating foreclosure, the borrowers would have received a modification without having to go through both a foreclosure and an eviction proceeding and over six months of uncertainty about whether or...

The Problem SB 1275 Addresses Foreclosures Continue at Record Pace: The foreclosure crisis continues to rage in California, with little sign of easing in the near future. Nearly 200,000 foreclosures were completed in California last year, and are on pace to exceed that number in 2010. At the same time, the main federal loan modification program (HAMP) has produced fewer than 48,000 permanent loan modifications in California. Borrowers Experience Alarming Level of Problems with Their Servicers: Borrowers, housing counselors and attorneys throughout the State report that they regularly face...

California's Rees-Levering Act entitles car loan borrowers to receive information on the amount they must pay to recover their car when it is repossessed. This represents an important, and easy to satisfy, legal protection for car loan borrowers who otherwise may find it hard to determine the amount of payments and fees the lender claims are owed. U.S. Bank successfully argued to a California federal district court that it did not have to follow this law because of its status as a National Bank. CRL, joined by AARP, National Consumer Law Center, National Association of Consumer Advocates...

Committee: California State Assembly Banking and Finance Committee

Committee: California State Senate Banking, Finance & Insurance Committee