California Mandatory Mediation Bill Dead This Year

By a vote of 38-31, the California Assembly defeated AB 1639. That bill would have provided borrowers the right to request a mandatory mediation program prior to foreclosure, similar to legislation enacted in Nevada. The bill would have prohibited taking any action with respect to power of sale until a “Mediated Mortgage Workout” program was adopted.

Mike Belote, UTA’s California Lobbyist, had testified against the bill in hearings held before the Assembly in March. His testimony focused on the difficulties in implementing and executing such a program in California.

With the legislative session coming to a close on August 31, the bill appears to be dead, but vigilance is necessary to make sure that the concept is not included in another bill prior to adjournment.