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Not All Lenders Are Created Equal in California's Foreclosure Prevention Act

By
Real Estate Broker/Owner with Real Living GreatWest

 

 

Not all California lenders are created equal when it comes to the state's newly implemented foreclosure prevention act launched early last week.  It is being reported that 7 lenders have been provided immunity, and several others have made application to become immune.

Among the first 7 qualifying and found exempt from the act are: 

  • Bank of America Home Loans
  • CitiMortgage
  • Carrington Mortgage Services

Among qualifying criteria for bank exemption is participation in the "Making Home Affordable" program promoted by the Obama administration.

California has been heavily impacted by the number of foreclosures in the current housing crisis, with more than 365,000 foreclosures in the last two years.  Sacramento logged in 37,000 of these. 

The implementation of the foreclosure prevention act was seen as a tool to help quell those numbers.  While some homeowners may be helped, many real estate professionals view the act as only delaying the inevitable.

You can access a more detailed Sacramento Bee report titled, "7 lenders get immunity from state foreclosure prevention act"


Written for GreatWest GMAC
by: Myrl Jeffcoat

Stefan C. Jezycki
Pacific Union International - Christie's Great Estates - Napa, CA

Has this list expanded? It seemed that this was to ensure that lenders had a loan modification department. Most lenders have these "services" in place. If so, aren't they exempt from the 90 moratorium.

Stefan In The Napa Valley

Oct 07, 2009 09:29 AM