Sacramento Update May 2024

The April crush of bill hearings just concluded and several measures impacting community banks continue to move through the legislative process. CCBN has been actively involved in advocacy and negotiations on these pieces of legislation, the most noteworthy of which are:

-SB 1286 (Min), which extends the protections for consumers under the Rosenthal Fair Debt Collection Practices Act to include individuals who have signed onto debt of up to $500,000 incurred by their small businesses.  This would place new requirements on creditors collecting their own debt and applies statute that is tailored to consumer debt to commercial debt, so CCBN is opposed and testified in opposition to the bill in Senate Judiciary Committee on April 23. SB 1286 will now move to the Senate Appropriations Committee. 

-AB 3100 (Low), which requires residential conventional mortgages with multiple borrowers to include provisions to allow for any of the existing borrowers to buy the property interest of another borrower by assuming the seller’s portion of the mortgage if the assuming borrower qualifies for the underlying loan. The goal of the bill is to assist parties in a divorce who want to assume a mortgage without having to go through the refinancing process. CCBN and other financial services stakeholders are currently working with the author on potential amendments, who is seeking formal guidance from FHFA as to whether GSEs can buy loans on properties subject to the bill. 

CCBN is also supporting AB 1871 (Alanis), which adds personal financial literacy to the course of study for social sciences in grades 7-12, and AB 2618 (Chen), which makes permanent the temporary authority for a local agency to invest up to 50% (rather than 30%) of its surplus funds in deposits at a commercial bank, savings bank, savings and loan association, or credit union under specified conditions..  Both bills are moving through the Legislature unopposed.