The California Legislature is moving ahead with bills intended to protect homeowners in the foreclosure process, setting up a potential showdown between the state attorney general and mortgage lenders.
Among the changes sought by Attorney General Kamala Harris is one that would allow homeowners to challenge foreclosure proceedings in court, a step the state banking association says would reward delinquent borrowers.
Harris also wants to write into state law some of the temporary provisions of a nationwide mortgage settlement she helped negotiate with banks in February.
They would ban “dual-track foreclosures” by prohibiting lenders from filing notices of default while they also consider alternatives to foreclosures.
Banks also would be prohibited from approving foreclosures without properly reviewing documentation.
The Senate approved legislation Thursday allowing a conference committee to consider the bills.