Both plans, BofA’s and the proposed CA law make sense.
B of A will turn some bad loans into good loans. Good business decision. Though their requirement that loans be delinquent in order to enter the program seems misguided.
The proposed CA law will speed up the process while requiring interim payments from borrowers. The time frames for requesting entry into the mediation program, response from the lender, follow-ups, and mandatory meetings between lender and borrower are all within the first 45 days after NOD. Most foreclosures take 9 to 12 months with NO payments. Lenders should have been doing this all along.