Further, the bill would limit the rate of interest that could be applied to the consumer’s account to 7% per annum. However, even when the 180 days expires, AB 2501 still limits the ability for these institutions to recover any loss payments from the consumer. SB 893 would significantly increase workers’ compensation costs for public and private hospitals by presuming that certain diseases (including COVID-19) and injuries are caused by the workplace and establishes an extremely concerning precedent for expanding presumptions into the private sector. If passed, Assembly Bill 2501, COVID-19 Homeowner, Tenant and Consumer Relief Law of 2020, would require credit unions to offer inflexible forbearances on … To stretch things further, AB 2501 also requires credit unions to pause auto loan payments for members experiencing COVID-19 related hardship – and regardless of delinquency status – for up to 180 days and does not allow the credit union to charge fees, penalties or additional interest beyond the amounts scheduled during the forbearance period. For example, upon placing a mortgage obligation in forbearance, a mortgage servicer must provide the borrower with “a complete and accurate description of the loss mitigation and reinstatement options that will be available to the borrower at the end of the forbearance period.”  A mortgage servicer that violates any of AB 2501’s requirements not only forfeits their rights to commence foreclosure on a borrower that is harmed by the violation, but is also subject to new legal liability if the post-forbearance payment options contain false or misleading statements. As the CalChamber has repeatedly stated, the private sector cannot be the safety net for this crisis. AB 2501 – COVID-19 Homeowner, Tenant, and Consumer Relief Law of 2020, https://www.aba.com/-/media/documents/letters-to-congress-and-regulators/joint-trades-california-ab-2501-051720.pdf?rev=6276e601e2314d6d96dd92209331f15e, https://www.mortgagemedia.com/wp-content/uploads/2020/05/AB-2501-Limon-Mortgage-Servicers-Opposition.pdf, The Reauthorization and Revival of the Paycheck Protection Program and Economic Injury Disaster Loan Program under the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act, California Conforms To Federal Income Tax Treatment Of PPP Loan Forgiveness, The October 2, 2020 SBA Procedural Notice: Change of Ownership Transactions Involving PPP Borrowers, California Legislature Passes Mini-CFPB Bill; If You Liked The Department Of Business Oversight, Get Ready For The Department Of Financial Protection And Innovation, Protecting Exclusive Distribution Rights for Patented Products and Other Licensed IP, Government Contracts & Investigations Blog, New York Commercial Division Round-Up Blog, Real Estate, Land Use & Environmental Law Blog, U.S. Legal Insights for Korean Businesses. The Honorable Monique Limón . That is the role of government. 2020 13. In the U.S., the firm’s clients include more than half of the Fortune 100. By scrolling this page, clicking a link or continuing to browse our website, you consent to our use of cookies as described in our Cookie and Advertising Policy. PANDEMIC UNEMPLOYMENT ASSISTANCE (PUA) C.A.R. The bill requires lenders to maintain home and auto loans for an extended length of time with no payments from borrowers. AB 2501 (Limón; D-Santa Barbara) was added to the California Chamber of Commerce Job Killer list today. The Finance & Bankruptcy Law Blog is designed to apprise financial institutions on the current issues that directly impact their business as well as advising on best practices to solve the multidisciplinary problems presented by business insolvencies. March 12, 2020: California REALTORS® expect coronavirus to impact housing market . SB 893 (Caballero; D-Salinas) has stalled after failing to secure enough votes to pass the Senate Labor, Public Employment and Retirement committee on May 14. View the California Assembly vote history on AB 2501 in California 2019-2020 Regular Session. AB 2501: Burden on Lenders. A job killer bill that will significantly restrict Californians’ ability to access home and auto loans by placing onerous burdens on lenders, which will further exacerbate the housing crisis, will be considered by the Assembly Banking and Finance committee today. May 14, 2020 . The deadline  for getting the bill to the Assembly floor for vote is June 19th.