California families and neighborhoods have been suffering greatly under the weight of the foreclosure crisis. This last year has brought major policy developments to California, including the $25 billion Attorney Generals’ National Mortgage Settlement (NMS) and the landmark Homeowner Bill of Rights (HBOR) legislation. The NMS requires the five largest servicers to provide considerable consumer relief and honor foreclosure processing reforms. HBOR, which imposes new servicer obligations and gives consumers the right to sue their servicer in court, was cited as the reason for the large drop in foreclosure starts in California in February, and again in March. As settlement progress reports are released and real estate trends are examined, the lingering question is whether the NMS and HBOR have successfully changed bank practices so that struggling homeowners have a fighting chance to avoid foreclosure.To answer this question, the California Reinvestment Coalition (CRC) surveyed the large network of nonprofit housing counselors and legal service providers in California. These counselors serve thousands of homeowners that represent a variety of income levels, races, and borrower classes. This is the ninth survey of housing counseling agencies conducted by CRC since the beginning of the foreclosure crisis.

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Chasm Bw Words and Deeds IX Final Report