California Provides ‘Nuclear Weapon’ to Use Against Mortgage Industry

The recently-enacted Homeowner Bill of Rights may have “changed hundreds of years of real estate law and may have turned California into a judicial foreclosure state with financial firms on high alert,” according to one prominent California trial attorney.

“In California, they just gave trial lawyers a nuclear weapon to use against the industry,” said Bob Jackson, president and attorney at Irvine, Calif.-based Jackson & Associates. Jackson spoke at HousingWire’s REperform Summit, a mortgage servicing conference in Dallas.

“The Homeowner Bill of Rights is the most massive change in the last 100 years of real estate law,” he said. “It used to be servicers were in the business of enforcing simple contract law. What the loan servicer did is they enforced the contract, but that is no longer how the game is played.”

The bill of rights, which was legislation designed by California Attorney General Kamala Harris, gave borrowers standing to legally address violations of the new foreclosure legislation.

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  • Harry B

    This will make banks more skeptical about who they rent to – so maybe we’ll avoid another recession in the future. Bravo, Harris!

  • Roberto Jimenez

    Of course he’d stand up and say that at a mortgage servicing conference – They are going to be the ones paying him to defend ’em!!

  • Kristie T

    It’s all confusing – both sides are hard to follow for me, especially the foreclosure legislation.

  • Jim

    This is the stupidest thing I’ve ever heard. Harris just wanted to look like she was being helpful to the consumer but the biggest gainers are the lawyers.