California Mortgage Lenders Required to Reduce Loan Balances to Current Value of Home (2012)

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A Mortgage Lenders Required to Reduce Loan Balances to Current Value of Home ballot initiative (10-0021) was cleared for circulation for California's 2012 ballot as an initiated state statute. However, sponsors of 10-0021 did not submit the required signatures by the deadline and therefore, #10-0021 will not be on the ballot.

The formal letter requesting a title and summary for the proposed initiative was signed by Barbara Moseby. The Attorney General of California's office provided an official summary on October 14, 2010. The circulation deadline for the initiative was March 14, 2011.

Text of measure

See also: Ballot titles, summaries and fiscal statements for California 2012 ballot propositions

Ballot title:

Requires Lender or Other Mortgage Holders, Upon Borrower's Request, to Convert Adjustable-Rate Loan
to Thirty-Year Fixed Rate Loan and Reduce Loan Principal to Property's Current Fair Market Value. Initiative Statute.

Official summary:

"Limits new loan's value to sum of the property's current market value, plus amount of certain cash distributions under the first mortgage. Extinguishes borrower's obligations on prior loans secured by the property. Prohibits reporting loan conversion to consumer credit agencies. Requires lenders to consent to short sale of nonowner-occupied property, upon borrower's request. Applies retroactively."

Summary of estimated fiscal impact:

See also: Fiscal impact statements for California's 2012 ballot propositions

(This is a summary of the initiative's estimated "fiscal impact on state and local government" prepared by the California Legislative Analyst's Office and the Director of Finance.)

"The fiscal effect of this measure on state and local government is probably insignificant."

External links

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