Attorney General Becerra Reminds Mortgage Servicers of Their Obligations to California Homeowners During COVID-19 Pandemic

SACRAMENTO – California Attorney General Xavier Becerra today sent a letter to 33 mortgage servicers reminding the companies of their obligations to California homeowners and tenants under the Homeowner Bill of Rights. As a wave of coronavirus-related foreclosures and post-foreclosure evictions is expected to hit homeowners throughout the state, today’s letter serves to forewarn mortgage servicers that they must adhere to legal protections for California homeowners. The letter also emphasizes that servicers that fail to adhere to mandatory homeowner protections may face enforcement actions by the California Department of Justice.

“As the dual economic and public health crises continue, many California homeowners may fall behind on their mortgage payments,” said Attorney General Becerra. “During times like these we must rely on laws, such as the California Homeowner Bill of Rights, to provide a safeguard for families who are one payment away from losing their homes. We take the rights of homeowners very seriously and expect all mortgage servicers to comply with the law.”

California’s Homeowner Bill of Rights provides homeowners with the right to fairness and transparency in the pre-foreclosure and foreclosure process and gives homeowners a meaningful opportunity to avoid losing their home. The law also gives rights to tenants living in homes that are undergoing foreclosure. In today’s letter, Attorney General Becerra reminds mortgage servicers that they must commit adequate resources to meet their legal obligations as the coronavirus and economic crisis continues.