Meeting with California State Senator Gloria Negrete McLeod of District 32.
Friday July 10, 2009
Members Michael and Dennis of the San Bernardino ACORN along with Tresa Kaelke (San Bernardino ACORN Community Organizer) and Christina Spach (California Field Corrdinator); attended the schedule meeting with California State Senator Gloria Negrete McLeod of District 32.
The topics of discussion:
AB377 (prevent pay day loan increases). Currently pay day loan companies are trying to increase the lending rate in the state of California from $300.00 to $500.00 per pay day loan. At this time the interest rate paid is $15.00 per $100.00 borrowed. Michael discussed the dangers of such increases. The Senator believes the bill would die before it even gets to get desk for consideration.
AB260 (prevent predatory mortgage lending). This bill is designed to add stiffer consequences to bad mortgage lending. Dennis discussed this bill with the Senator. The Senator was moved by the personal story that Dennis shared. The Senator requested more information on this bill.
Michael brought to the discussion floor SB 1137 which has been in law for almost 1 year. SB 1137 requires the lenders/bank to carry out certain procedures before a foreclosure could move forward. Michael informed the Senator that one major problem with this bill is that the mediation is not being carried out in the benefit of the homeowner. Michael shared experiences from attorney’s who could not receive a ruling in court from SB 1137. The problem is that the judges have stated that mediation is not defined clearly and thus the steps the lender/banks are taking are sufficient and that SB 1137 lacks teeth to enforce steeper mediation requirements. The Senator asked the ACORN attendees to help her focus on that issue brought up by Michael and move quickly to draft a bill to for mediation and the mandated steps that should be taken to give SB 1137 teeth.
In conclusion, the meeting was success and we are looking forward in working with Senator McLeod in enhancing SB 1137. Thanks to Dennis, Michael, Tresa and Christina we are making steps in protecting homeowners.
District 32 stretches over two counties encompassing the cities of Colton, Fontana, Montclair, Ontario, Rialto and San Bernardino including the unincorporated communities of Bloomington and Muscoy in San Bernardino County; and portions of Chino and the entire City of Pomona in Los Angeles County.