Under Assembly Bill 764, which was vetoed in October, violations will be subject to a fine of $20,000 for an individual and $60,000 for a corporation and up to one year in county jail.
The vetoed Homeowner Fraud Prevention Act was approved by California’s Democratic-led Legislature with wide bipartisan support. Nava is chairman of the Assembly Banking and Finance Committee.
In his veto message, Republican Gov. Arnold Schwarzenegger said he was opposed to a provision in Nava’s bill that would have only allowed fees to be collected if a loan modification was successful.
“This could adversely affect legitimate businesses that provide loan modification services,” Schwarzenegger said.
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