Joint Trades on AB 2501 the COVID-19 Homeowner, Tenant and Consumer Relief Law of 2020
Summary
SIFMA and joint trades provided comments to the California State Assembly on concerns with AB 2501 the COVID-19 Homeowner, Tenant and Consumer Relief Law of 2020. While the legislation is well intended, it has the potential to cause significant disruptions in the mortgage markets, limit access to credit and lead to further unintended consequences for California customers.
See also: Opposition to AB 2501 (Limón): COVID-19 Homeowner, Tenant, and Consumer Relief Law of 2020
Excerpt
May 17, 2020
The Honorable Monique Limon
Member, California State Assembly
State Capitol, Room 6031
Sacramento, California 95814
Dear Assembly Member Limón:
On behalf of the undersigned trade associations representing the financial services industry, we are writing to express concerns with AB 2501 the COVID-19 Homeowner, Tenant and Consumer Relief Law of 2020. While the legislation is well intended, it has the potential to cause significant disruptions in the mortgage markets, limit access to credit and lead to further unintended consequences for California customers.
The financial services industry is taking unprecedented steps to assist its customers during the COVID-19 pandemic. Financial services firms are successfully working with customers to provide not only the relief required by federal and state law, but also customized options to make sure that customers receive the solutions that work best for their personal financial situations. In just seven weeks since the CARES Act passed in late March, mortgage servicers have provided forbearance to approximately 3.5 million borrowers nationwide,1 while operating under the challenging conditions of converting call centers to remote work. Financial companies are also engaged with federal regulators, as they enhance and adapt their guidance on communicating with borrowers, to ensure borrowers are aware of and know how to access available payment relief options.