California Mortgage Lenders Required to Reduce Loan Balances to Current Value of Home (2012)
|Not on Ballot|
| This measure did not or |
will not appear on a 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
- "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:
(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."