4 Major Achievements in California Legislature
AB 3088 maintains credit unions’ ability to work with members on mortgage forbearances — a MAJOR VICTORY. The League worked extensively with Governor Gavin Newsom to shape the outcome of AB 3088. The bill does not include any language on foreclosure moratoriums, mandatory forbearance, or long-term eviction moratoriums and was a last-minute compromise out of multiple bills dealing with eviction and forbearance. AB 3088 came after we battled and defeated AB 1436 and AB 2501.
AB 1436 moved from one Senate committee to another and was a near repeat of the mortgage forbearance requirements that credit unions had already defeated in AB 2501 in late June. The mortgage provision from then-defeated AB 2501 was dropped into a housing eviction/rent relief bill (AB 1436).
Earlier in the year, AB 2501 was introduced after state legislators came back from an unexpected COVID-19 recess and would have let any borrower request a mortgage forbearance for up to 12 months, and up to six months on an auto loan, without any proof of economic impact due to the pandemic. It also included a year-long moratorium on foreclosures, meaning a borrower could go up to two years without making a payment.
The League and credit unions rallied together during two intense Connect For The Cause campaigns by sending a total of 21,125 messages to Assemblymembers and Senators to kill AB 2501 and AB 1436!
Defeated multiple bills that attempted to expand the California Consumer Privacy Act (CCPA), namely SB 561. This measure would have removed the attorney general’s guidance for businesses, as well as the 30-day right to cure, making the entire CCPA subject to private right of action.
SB 1121 clarifies the Gramm-Leach-Bliley Act (GLBA) exemption included in the new CCPA and protects credit unions from large compliance costs related to updating information-technology systems for new consumer notices and opt-out requirements.
