November 17, 2009
California Assembly Speaker Karen Bass has introduced AB 1588, the Monitored Mortgage Workout (MMV) Program. AB 1588 may not be considered until the Legislature returns in January.
The bill provides for state-appointed monitors to ensure homeowners have a chance to work out with their lenders a plan to prevent home foreclosure. If a borrower elects to participate in the MMV Program, a Monitor is appointed to oversee the loan modification process. The Monitor is required to have certain minimum qualifications and once the MMW Program has been initiated, no further steps may be taken to foreclose until the MMW Program has been completed.
Bass also announced a set of interim hearings to be conducted across California aimed at assessing success rates banks have had so far in modifying loans of their struggling borrowers. Please see Press Release on this subject.