Keep Escrow and Title Local

Below is a Legislative Alert regarding Assembly Bill 957, the Buyer's Choice Act. In a nutshell, with the flood of foreclosure and bank owned properties on the market for sale, the lenders (aka beneficiaries) have required buyers to purchase title insurance and escrow services specifically chosen by the lenders. This has greatly effected local escrow companies over the last several months as the majority of homes being sold have been foreclosures. Escrow and title fees are being shipped to some companies out of the area or even (in some cases) out of state. Again, this effects our local escrow and title companies who are struggling right along with everyone else in this economy. AB 957 will prohibit these lenders from dictating title and escrow and will allow buyers to make their own choices. Read below:

SUBJECT: ASSEMBLY BILL 957 (Galgiani) - "BUYER'S CHOICE ACT"

AB 957 authored by Assembly Member Cathleen Galgiani is a measure which would prohibit mortgagees, beneficiaries under a deed of trust or other persons (i.e. lenders, etc.) who acquired title to residential real property at a foreclosure sale from, as a condition of selling that real property to a buyer, require the buyer to purchase specific title insurance or use certain escrow services in connection with the sale from a company specifically chosen by the seller. In addition, the seller would not be allowed to disapprove of the use of a title or escrow company chosen by a buyer unless the seller has good cause.

AB 957 is strongly supported by a range of small independent escrow licensees, real estate agents, title companies, and other settlement service providers, and is co-sponsored by the Escrow Institute of California. AB 957 is an attempt to break the monopoly and strangle hold that Banks and Large Title Companies have on REO foreclosure resales, and provide smaller settlement service providers the opportunity to compete for business, as well as give consumers the ultimate decision and therefore "choice" to select their preferred settlement service provider. AB 957 does not affect current business relationships or arrangements between lenders and select settlement service providers, but ultimately will help grow the pie for all independent escrow licensees to effectively compete for business.

AB 957 is scheduled for its first committee hearing on MONDAY, APRIL 20, 2009 before the CALIFORNIA STATE ASSEMBLY BANKING & FINANCE COMMITTEE in Room 444 in the State Capitol.

In anticipation of the Assembly Banking & Finance Committee hearing, we are requesting that Members consider the following actions that must be taken immediately in support of AB 957:
Send your letter of support on your company letterhead to the Members of the Assembly Banking & Finance Committee and Assembly Member Galgiani (REFER TO THE COMMITTEE LIST BELOW)
Consider having your fellow escrow company owners/shareholders, managers, employees, family members and friends send their own individual support letters, and/or group letter/petition that is signed by everyone involved in your company.
Seek out and ask that your fellow settlement service providers -- title, real estate and mortgage brokers, etc. consider sending letters of support.
Many of our Members have sought and received support from local chambers of commerce and other business affiliations and associations, as well as their local elected officials, city councils and county boards of supervisors. We need our local civic and business leaders to send their letters of support.
Any support from the local media needs to be brought to the attention of the Legislature.
Finally and probably one of the most important elements, we need any consumer/client empirical evidence/documentation and specific examples where individuals have been harmed. This documentation is critical to show the extent of the problem and why the Legislature must act NOW to open up the marketplace for the benefit and protection of consumers.
Letters of Support Should be Addressed to the following:

The Honorable Pedro Nava
Chairman
Assembly Banking & Finance Committee
California State Assembly
State Capitol
10th & L Street
Sacramento, California 95814

The Honorable Cathleen Galgiani
Assembly Member
California State Assembly
State Capitol
10th & L Street
Sacramento, California 95814

RE: AB 957 (Galgiani) - SUPPORT

Dear Chairman Nava and Assembly Member Galgiani:

(YOUR LETTER OF SUPPORT IN
YOUR OWN WORDS)

Sincerely yours,


Your Name Here

cc: Members of the Assembly Banking & Finance Committee
Kathleen O'Malley, Consultant, Assembly Banking & Finance Committee
Frank Prewoznik, Republic Consultant, Assembly Banking & Finance Committee
The carbon copy letters to the Members and Staff of the Assembly Banking & Finance Committee should be addressed and mailed to:

*The Honorable Ted Gaines
Vice Chairman
Assembly Banking & Finance Committee
State Capitol
10th & L Street
Sacramento, California 95814

*The Honorable Joel Anderson
Member
Assembly Banking & Finance Committee
State Capitol
10th & L Street
Sacramento, California 95814

*The Honorable Noreen Evans
Member
Assembly Banking & Finance Committee
State Capitol
10th & L Street
Sacramento, California 95814

*The Honorable Paul J. Fong
Member
Assembly Banking & Finance Committee
State Capitol
10th & L Street
Sacramento, California 95814

*The Honorable Felipe Fuentes
Member
Assembly Banking & Finance Committee
State Capitol
10th & L Street
Sacramento, California 95814

*The Honorable Tony Mendoza
Member
Assembly Banking & Finance Committee
State Capitol
10th & L Street
Sacramento, California 95814

*The Honorable Norma J. Torres
Member
Assembly Banking & Finance Committee
State Capitol
10th & L Street
Sacramento, California 95814

*The Honorable Ira Ruskin
Member
Assembly Banking & Finance Committee
State Capitol
10th & L Street
Sacramento, California 95814

*The Honorable Sandre Swanson
Member
Assembly Banking & Finance Committee
State Capitol
10th & L Street
Sacramento, California 95814

*The Honorable Van Tran
Member
Assembly Banking & Finance Committee
State Capitol
10th & L Street
Sacramento, California 95814

Staff to the Committee address:

Ms. Kathleen O'Malley
Consultant
Assembly Banking & Finance Committee
1020 N Street, Room 360B
Sacramento, California 95814

Mr. Frank Prewoznik
Republican Consultant
Assembly Banking & Finance Committee
1020 N Street, Room 400
Sacramento, California 95814

Letter writing Tips:
It is important to use your own words utilizing your own stationery
Keep your letter short and clear
Identify the bill -- as we have in the suggested letter heading above
State reasons for your support position. Share how AB 957 is important to your company, employees and community
Close by thanking the Committee for considering your comments and support for AB 957
To assist Institute Members in our Grass-Roots letter writing campaign, the Board has prepared the attached Bullet Points. Please do not copy verbatim, but pick and choose those you would like to use and put into your own letter using your own words and please share any documentation and evidence as part of your support letter.

Please contact the Institute Office if we can be of any assistance.

To read AB 957 click here: http://www.leginfo.ca.gov/pub/09-10/bill/asm/ab_0951-1000/ab_957_bill_20090226_introduced.pdf