The California Senate reversed itself and overwhelmingly passed a measure expanding mortgage protections to homeowners who have refinanced their original home loans. According to a report in The Orange County Register, by a 30-4 vote, the Senate adopted SB 1178, which would prohibit lenders from seeking repayment from homeowners when a foreclosed home is worth less than its mortgage balance. The body voted 19-5 last week against the measure, which the lending industry opposes. Supporters won more support for the measure after a compromise that limited benefits for homeowners who received cash back with their refinance.
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