SACRAMENTO
McGuire’s legislation to stop mortgage companies from hoodwinking wildfire survivors
Tens of thousands of Californians have lost their homes and businesses to wildfires in the last eight years. After facing the traumatic and life-changing experience of losing their home, survivors have to begin the challenging task of rebuilding their homes and lives.
Senate Majority Leader Mike McGuire’s common sense piece of legislation, SB 455, would protect wildfire and other disaster survivors by keeping their home rebuilds on track. The bill would mandate that mortgage companies honor existing rebuild contracts even when mortgages are transferred or sold to another mortgage vendor, a common practice in the banking industry.
Leading up to this legislation, hundreds of families had started to rebuild their homes only to have the terms of their rebuild changed when their mortgage was sold and the new mortgage company didn’t honor the previously agreed upon rebuild contract.
“Ensuring existing rebuild agreements are honored when mortgages are sold is just common sense. Disaster survivors already face tremendous challenges to recover and rebuild after a wildfire or earthquake, and SB 455 will give homeowners certainty and peace of mind when they rebuild their home and lives.” said Senator McGuire. “Our legislation would make it illegal for this kind of hoodwink to ever take place again in California.”
In typical cases, survivors work closely with their mortgage company to negotiate the terms of their home rebuild and enter into a contract with a contractor to begin the rebuilding process. It’s a straightforward and seamless process for most.
But not for all:
- Some new mortgage companies have added additional terms to existing rebuild agreements such as requiring more inspections, significantly delaying the rebuild for months, even when the previous company had agreed to terms.
- An underinsured homeowner and their original mortgage company signed off on the rebuild of a smaller house, but the new mortgage company wouldn’t honor the agreement. The new company refused to release all of the remaining funds because the rebuild was different than the lost home.
- Other survivors have been forced to liquidate pensions and use hard-earned savings to finish rebuilding their home when their insurance funds are withheld by the mortgage company.
SB 455 will make sure that any agreements made between homeowners and their mortgage company on the rebuilding of their home after a disaster are disclosed and honored by any new mortgage company.
SB 455 has now passed the Senate Banking & Financial Institutions and Judiciary Committees with bipartisan support.
—Submitted
LAKEPORT
Lake County Recreation Agency seeks board member
The City of Clearlake, City of Lakeport, and County of Lake recently partnered to establish a new agency, the Lake County Recreation Agency (LCRA), with a focus on improvements to recreational facilities/programs in Lake County.
The LCRA board of directors is comprised of two County supervisors, two Clearlake council members, and two Lakeport council members.
There is a seventh, “at-large,” position on the board of directors that is to be appointed by the six current members.
If you are interested in applying for the at large position, please complete the application and submit to nwalker@cityoflakeport.com or to Lakeport City Hall, 225 Park Street, Lakeport.
The application is available on the City of Lakeport website at the link, https://na4.documents.adobe.com/public/esignWidget?wid=CBFCIBAA3AAABLblqZhCJ2QJt1Gc0duOodAh1o9uBfW1v8fk7-HGSSBqxNkzhN1V-0xrYHoPShHr49kYf-0E*
To be eligible for appointment to the LCRA board, candidates must be at least 18 years of age, a citizen of California, and a resident of and registered voter in the County of Lake.
The applicant is asked to describe education, experience, training, license or professional designation, and public service qualifications.
Candidates will describe what they consider to be the top three to five significant issues or priorities in regard to recreation in Lake County and their thoughts about addressing these concerns.
For more information, contact Nicholas Walker, (707) 263-5615, Ext. 301.
—Submitted
