History

• The law was sponsored by Assemblyman Ted Lieu (D-Torrance). It passed the California Assembly by a vote of 48 to 27 on February 19, 2009; on the same day, it passed the California Senate, by a vote of 23 to 15. Governor Arnold Schwarzenegger signed it the next day.
  
  

Specifications

• The law requires regular reports to the state legislature on loan modification programs and the resulting reduced number of foreclosures. Qualified loan modification programs are those that reduce mortgage payments to 38 percent of homeowner income by reducing the interest rate or extending the loan term to 40 years.
  
  

Not Covered

• The bill does not mandate loan modification for "investor-owned loans" that often were packaged and sold by investment banks. It does not require providing a loan modification if the homeowner is unable or unwilling to pay the new mortgage.