ONTARIO, Calif.–The California Credit Union League is hailing the passage of a bill in the State Assembly as a “grand slam” for credit unions in the state.
The league said it worked for several weeks with California Gov. Gavin Newsom on his bill — Assembly Bill 3088 — before it passed on the floors of the California State Assembly and State Senate and was immediately signed into law.
“The Tenant, Homeowner, and Small Landlord Relief and Stabilization Act of 2020 is a HUGE VICTORY for credit unions as it will maintain their ability to work with members on mortgage forbearances,” the league said.
According to the league, AB 3088 was a major “last-minute compromise coming out of several competing political interests and stemmed from multiple bills in the legislature dealing with eviction and mortgage forbearance. The California Credit Union League and credit unions are thrilled that it does not include any language on mortgage foreclosure moratoriums, mandatory forbearance, or long-term eviction moratoriums.”
But the league offered a caveat, saying there are provisions in the bill that credit unions need to be aware of. The league has published a synopsis of the legislation to provide guidance.
‘Could Not be Prouder’
“The league could not be prouder of the credit union movement’s GRAND SLAM in Sacramento!” the league said on its website. “The steps credit union leaders, their staffs, and credit union supporters took were absolutely amazing. The governor’s bill, AB 3088, came after nearly 10,700 urgent messages were sent to state senators educating them on the harmful impact of AB 1436, which moved from one senate committee to another but was never introduced on the floor of the Senate.”
The league noted AB 1436 was a near repeat of the mortgage forbearance requirements that credit unions had already defeated in AB 2501 in late June.
“Within just a couple of months, credit unions rallied together during two intense Connect For The Cause campaigns by sending a total of 21,125 messages to help kill both AB 2501 and AB 1436,” the league said.
According to the league, Gov. Newsom has listened to credit unions’ concerns and sees how the industry has provided financial relief to struggling members through forbearances, skipped payments, zero or low interest loans, and fee waivers during the current COVID-19 pandemic.