By Mayumi Bowers, VP of Operations, Val-Chris Investments, Inc.

On March 4, CMA partnered once again with the United Trustees Association (UTA) for our annual Legislative Day in Sacramento. This year’s event brought together a strong group of CMA and UTA members, including many first-time participants, for an important day of advocacy on issues affecting the private lending and nonjudicial foreclosure communities.

Participants met with legislators and legislative staff throughout the afternoon to discuss several key bills currently before the Legislature. CMA and UTA emphasized the importance of protecting borrower equity in foreclosure and supported AB 1957, which would advance the sunset date on SB 1079 from January 1, 2031 to January 1, 2027. The key message was that while SB 1079 was originally intended to broaden homeownership opportunities after foreclosure sales, the process has unfortunately been subject to abuse and has chilled bidding at foreclosure sales, ultimately depriving borrowers of hard-earned equity.

The group also discussed disaster-related forbearance proposals, including AB 1847 and AB 1842. CMA and UTA recognized the real human impact of wildfires and other disasters, while also stressing that lenders and trustees should not be placed in conflict between state law and their contractual obligations to investors. The message was one of collaboration: to work with lawmakers to preserve a careful balance that protects borrowers without creating unintended consequences for lenders, trustees, and investors.

Attendees also raised concerns about AB 2145, which would allow borrowers who have reached “retirement age” to transfer the rate and term of their residential mortgage to a replacement principal residence. CMA and UTA noted that the bill raises difficult questions involving existing loan agreements, borrower qualification, default status, and the suitability of replacement collateral.

Finally, CMA and UTA discussed ongoing concerns regarding “zombie” mortgage legislation following last year’s AB 130, which imposed new requirements on the enforceability of subordinate mortgages. The key message was that these requirements may discourage the making of second mortgages in California, limiting an important way for homeowners to access equity while retaining low interest rates on their first mortgages.

Attendees reported that the meetings were productive and that legislators and staff were receptive to the topics discussed. Going earlier in the legislative session than last year’s May visit also appeared to make a meaningful difference, as the timing allowed CMA and UTA members to engage policymakers while many bills are still being reviewed and shaped.

Following the day of meetings, attendees gathered for a cocktail hour generously sponsored by Wright, Finlay & Zak, LLP, giving participants an opportunity to reconnect, compare notes, and reflect on the day’s conversations.

Thank you to everyone who participated in Legislative Day and helped represent our industry in Sacramento. Events like this are an important reminder that direct engagement matters, and that CMA’s collective voice is strongest when members show up, share their expertise, and build relationships with policymakers.

 

Mayumi Bowers is VP of Operations with Val-Chris Investments, Inc. She can be reached at mayumi@val-chris.com.