BILL ANALYSIS                                                                                                                                                                                                    






                        SENATE COMMITTEE ON BANKING, FINANCE,
                                    AND INSURANCE
                           Senator Ronald Calderon, Chair


          SB 1275 (Leno)           Hearing Date:  June 2, 2010  

          As Amended:May 27, 2010
          Fiscal:             Yes
          Urgency:       No
          

           SUMMARY    Would require servicers to complete additional  
          actions, as specified, before recording a notice of default  
          (NOD), and to record a new document, called a declaration of  
          compliance, as an attachment to every NOD; and would establish  
          specific penalties to be applied to servicers who failed to  
          comply with the provisions of the bill, as specified.  
           
          DIGEST
            
          Existing law
            
           1.  Prescribes rules that govern the nonjudicial foreclosure  
              process in California (Civil Code Section 2924 et seq.).  A  
              layman's description of the portions of the process that are  
              relevant to this bill follows immediately below.  Modifications  
              that were made to this process by three recently-enacted pieces  
              of legislation are described in Existing Law numbers 2 and 3,  
              below.  

               a.     The nonjudicial foreclosure process begins with the  
                 recordation of a NOD by a mortgagee, trustee, beneficiary, or  
                 authorized agent.  The NOD must be recorded in the county in  
                 which the property securing the defaulted loan is located,  
                 and must be mailed to specified persons with a financial  
                 interest in the property, including the property owner.   
                 Existing law does not prescribe the minimum amount of time  
                 that must pass between a delinquency and the recordation of a  
                 NOD, although NODs are commonly recorded only after a  
                 borrower is at least 90 days delinquent on his or her  
                 mortgage loan;  

               b.     At least three months must pass after recordation of a  
                 NOD, before the mortgagee, trustee, beneficiary, or  
                 authorized agent may record a notice of sale.  Notices of  




                                                 SB 1275 (Leno), Page 2




                 sale must be recorded in the county in which the property  
                 securing the defaulted loan is located, mailed to the  
                 property owner and other specified persons with a financial  
                 interest in the property, published in a newspaper of general  
                 circulation, and posted on the property that is the subject  
                 of the sale;

               c.     At least 20 days must pass after recordation of a notice  
                 of sale, before a property may be sold.  However, sale dates  
                 may be, and often are, postponed.  Under existing law, a sale  
                 date may be postponed for any of the following reasons:  1)  
                 upon the order of any court of competent jurisdiction; 2) if  
                 stayed by operation of law; 3) by mutual agreement, whether  
                 oral or in writing, of any trustor and any beneficiary or any  
                 mortgagor and any mortgagee (i.e., by mutual agreement  
                 between a borrower and his or her lender); and/or 4) at the  
                 discretion of the trustee.  A new notice of sale must be  
                 recorded, if a postponement or postponements delay the sale  
                 for more than 365 days following the first scheduled sale  
                 date;  

           2.  Pursuant to SB 1137 (Perata), Chapter 69, Statutes of 2008,  
              until January 1, 2013, requires the following, before a NOD may  
              be recorded on a mortgage or deed of trust that was recorded  
              from January 1, 2003 through December 31, 2007, and that is  
              secured by single-family, owner-occupied residential real  
              property:

               a.     A mortgagee, beneficiary, or authorized agent must  
                 contact a borrower in person or by telephone, in order to  
                 assess the borrower's financial situation and explore options  
                 for the borrower to avoid foreclosure.  Contact (or attempted  
                 contact, if a borrower is unreachable) must be made  
                 telephonically and in writing, as specified.   During the  
                 initial contact, the mortgagee, beneficiary, or authorized  
                 agent must advise the borrower that he or she has the right  
                 to request a subsequent meeting, which, if requested, must  
                 occur within 14 days of request.  The mortgagee, beneficiary,  
                 or authorized agent must also provide the borrower with a  
                 toll-free telephone number that can be used by the borrower  
                 to contact a HUD-certified housing counseling agency;

               b.     A mortgagee, beneficiary, or authorized agent must wait  
                 at least 30 days after making initial contact with a  
                 borrower, or satisfying specified due diligence requirements  
                 to make contact, before it may record a NOD on a loan covered  




                                                 SB 1275 (Leno), Page 3




                 by the provisions of SB 1137;

               c.     Each NOD that is recorded on a loan covered by the  
                 provisions of SB 1137 must include a statement that the  
                 mortgagee, beneficiary, or authorized agent contacted the  
                 borrower, tried with due diligence to contact the borrower,  
                 or that no contact was required, because one of the express  
                 exemptions applied.  Exemptions from the bill's contact  
                 requirements are provided, in cases where a borrower has  
                 already surrendered the property, contracted with an  
                 organization or other entity that advises borrowers on how to  
                 "game" the foreclosure process, or filed for a bankruptcy  
                 that is still before a court;

           3.  Pursuant to SB 7 (Corbett) and AB 7 (Lieu), Chapters 4 and 5,  
              Statutes of 2009-2010 Second Extraordinary Session, until  
              January 1, 2011, requires the following, before a notice of sale  
              may be recorded on a mortgage or deed of trust that was recorded  
              from January 1, 2003 to January 1, 2008, and that is secured by  
              single-family, owner-occupied residential real property:

               a.     A mortgagee, trustee, or other person authorized to take  
                 sale must wait an additional 90 days (over and above the  
                 three months described in Existing law 1b above), before  
                 recording a NOD.  Exemptions from this additional 90-day  
                 delay may be obtained by mortgage lenders and servicers who  
                 apply to the Department of Financial Institutions,  
                 Corporations, or Real Estate (depending on their primary  
                 regulator), and who are deemed by the relevant commissioner  
                 to have implemented a comprehensive loan modification  
                 program, as specified;

               b.     Each notice of sale must include a declaration from the  
                 mortgage loan servicer, indicating whether the servicer  
                 obtained an order of exemption from one of the commissioners,  
                 which was current and valid on the date the notice of sale  
                 was recorded, or a statement that no additional delay was  
                 required, because one of the express exemptions applied.   
                 Exemptions from the bill's 90-day delay requirements are  
                 provided, in cases where a borrower has already surrendered  
                 the property, contracted with an organization or other entity  
                 that advises borrowers on how to "game" the foreclosure  
                 process, or filed for a bankruptcy that is still before a  
                 court; and in cases where the loan was made, purchased, or is  
                 being serviced by a state or local public housing agency or  
                 authority.   




                                                 SB 1275 (Leno), Page 4





          This bill

            1.  Would apply different sets of provisions to different types  
              of mortgage loan servicers, as follows:  

               a.     Mortgage loan servicers who are required to review  
                 loans pursuant to the Making Home Affordable Modification  
                 Plan ("HAMP servicers" for purposes of this analysis)  
                 would be subject to one set of requirements, with respect  
                 to mortgages and deeds of trust recorded prior to January  
                 1, 2009, which are secured by single-family,  
                 owner-occupied, residential real property;  

               b.     Mortgage loan servicers who are not required to  
                 review loans pursuant to HAMP ("non-HAMP servicers" for  
                 purposes of this analysis) would be subject to a  
                 different set of requirements, with respect to mortgages  
                 and deeds of trust recorded from January 1, 2003 through  
                 December 31, 2008; 

           2.  HAMP servicers would be required to do the following four  
              things, in addition to what they are required to do pursuant  
              to HAMP guidelines and directives:

               a.     Before recording a NOD on a loan covered by the  
                 bill, provide a specified notice to borrowers, describing  
                 the nonjudicial foreclosure process, informing them of  
                 their foreclosure-related rights, and explaining  
                 potential foreclosure avoidance options.  This notice  
                 would have to be made available by an unnamed state  
                 government entity, in English and each of the five  
                 foreign languages listed in Civil Code Section 1632  
                 (Spanish, Tagalog, Korean, Vietnamese, and Chinese);  

               b.     Within ten business days following a decision to  
                 deny a borrower's application for a mortgage loan  
                 modification, mail a denial explanation letter to the  
                 borrower.  Although HAMP guidelines and directives  
                 require servicers to mail a denial explanation letter to  
                 borrowers who have not been approved for a HAMP mortgage  
                 loan modification, SB 1275's requirements related to the  
                 denial explanation letter go beyond HAMP in three ways:

                     i.          Several of the inputs used by the  
                      servicer to calculate the net present value of  




                                                 SB 1275 (Leno), Page 5




                      modification versus foreclosure must be  
                      automatically provided to the borrower in the denial  
                      explanation letter, rather than provided only upon  
                      request by the borrower;

                     ii.         Three additional items must be provided  
                      to the borrower in the letter of denial: name and  
                      contact information for the holder of the mortgage  
                      note, date a completed application was received from  
                      the borrower, and date the borrower's application  
                      for a loan modification was denied;

                     iii.        If the servicer's communications with the  
                      borrower have been primarily in one of the five  
                      foreign languages specified in Civil Code Section  
                      1632, the denial explanation letter must be  
                      translated into that foreign language;  

               c.     Concurrent with recording a NOD on any type of loan  
                 (whether single-family residential, multi-family  
                 residential, or commercial), record a Declaration of  
                 Compliance.  The Declaration of Compliance is a "check  
                 the box" document, which asks the servicer or its agent  
                 to identify which of several specific provisions of law  
                 apply to the loan, which of several specific provisions  
                 of law were followed in connection with the loan, and  
                 which of several specific options the borrower elected,  
                 with respect to requesting a loan modification.  The  
                 Declaration of Compliance must be signed by an individual  
                 having personal knowledge of the information it contains,  
                 or by an individual with authority to bind the mortgage  
                 servicer, who certifies that the declaration is based on  
                 records made in the regular course of the servicer's  
                 business;

               d.     For purposes of completing the declaration of  
                 compliance, compile a record of the dates and times of,  
                 and addresses and telephone numbers used for attempts to  
                 contact the borrower.  Servicers are required to make  
                 this record available to a borrower within ten business  
                 days, if requested by the borrower in writing after a NOD  
                 has been recorded;

           3.  Non-HAMP servicers would be required to do each of the  
              things described in 2a, 2b, 2c, and 2d above, and would  
              additionally have to comply with a series of requirements  




                                                 SB 1275 (Leno), Page 6




              related to borrower outreach, contact, and communication.   
              These requirements reflect a combination of enhancements to  
              the contact requirements contained in SB 1137, plus some  
              actions required under HAMP, plus some changes to HAMP  
              requirements, which the bill's key proponents believe to be  
              improvements over HAMP rules and procedures.  The timing of  
              some of the requirements on non-HAMP servicers is different  
              than the timing required of HAMP servicers; 

           4.  Would provide the following remedies to borrowers whose  
              servicer fails to record a completed Declaration of  
              Compliance, submits a false Declaration of Compliance, or  
              fails to send a denial explanation letter that materially  
              complies with specified provisions of the bill.  The  
              remedies would only become available after the borrower's  
              property has been foreclosed upon nonjudicially:  

               a.     If the property is sold to a bona fide purchaser at  
                 the trustee sale (i.e., sold to a third party that is not  
                 the foreclosing financial institution), the borrower may  
                 recover the greater of treble actual damages or statutory  
                 damages of $10,000;

               b.     If the property is taken back by the foreclosing  
                 financial institution at the trustee sale but is later  
                 sold by that institution to a bona fide purchaser, the  
                 borrower may recover the greater of treble actual damages  
                 or statutory damages of $10,000.  However, if the  
                 borrower establishes that the servicer had notice of the  
                 borrower's claim under the provisions of the bill before  
                 selling the property to that bona fide purchaser, the  
                 borrower is additionally entitled to recover statutory  
                 damages of $15,000;

               c.     If the property is taken back by the foreclosing  
                 financial institution at the trustee sale and not  
                 subsequently sold to a bonafide purchaser, the borrower  
                 may bring an action to void the foreclosure sale;

               d.     In addition to the remedies available under 4a, 4b,  
                 or 4c above, the borrower would be entitled to recover  
                 between $1,500 and $10,000 in statutory damages, if the  
                 servicer failed to mail the translated notice informing  
                 borrowers of their foreclosure-related rights or failed  
                 to materially comply with the loan modification review  
                 process requirements of the bill;




                                                 SB 1275 (Leno), Page 7





               e.     Would not authorize a cause of action for any  
                 failure or error that is technical or de minimis in  
                 nature;

           5.  Would provide an express exemption from its requirements,  
              in cases where a borrower has already surrendered the  
              property, contracted with an organization or other entity  
              that advises borrowers on how to "game" the foreclosure  
              process, or filed for a bankruptcy that is still before a  
              court;

           6.  Would sunset on January 1, 2013.

            COMMENTS  
           
            1.  Purpose of the bill   To improve the procedures and  
              processes under existing foreclosure prevention programs,  
              with the following goals: 1) avoid unnecessary or mistaken  
              foreclosures; 2) encourage fair treatment of borrowers and  
              more timely outcomes; 3) provide greater transparency to  
              borrowers about foreclosure prevention decisions and  
              outcomes; and 4) provide borrowers with a remedy against  
              servicers who fail to comply with the law.

             2.  Background   The language of SB 1275 was developed by staff  
              of Housing and Economic Rights Advocates (HERA), a  
              statewide, not-for-profit legal service and advocacy  
              organization.  HERA drafted the proposal that formed the  
              basis for SB 1275, in response to its frustrations over the  
              treatment received by borrowers from their servicers, and  
              their belief that many borrowers who are eligible for loan  
              modifications are failing to be offered those modifications,  
              before being foreclosed on by their lenders.  

             3.  The Making Home Affordable Program:   The federal Making  
              Home Affordable (MHA) Program was developed by the U.S.  
              Department of the Treasury (Treasury), at the urging of  
              President Obama, in an effort to help borrowers avoid  
              foreclosure.  The MHA program includes several components,  
              such as the Home Affordable Modification Program (HAMP),  
              Home Affordable Refinancing Program (HARP), Second Lien  
              Modification Program (2MP), and Home Affordable Foreclosure  
              Alternatives (HAFA) Program.  

            Since its introduction in February 2009, HAMP has become the  




                                                 SB 1275 (Leno), Page 8




              cornerstone of most servicers' loss mitigation efforts.  Any  
              financial institution that received Troubled Asset Relief  
              Program (TARP) funding must comply with HAMP, as must any  
              financial institution that voluntarily enters into a written  
              agreement to participate in the MHA program (something that,  
              to date, over 100 financial institutions have agreed to do).  
                Furthermore, although loans owned or guaranteed by Fannie  
              Mae and Freddie Mac are not required to be run through the  
              HAMP program by their servicers, both government-sponsored  
              enterprises (GSEs) have issued directives to their servicers  
              that essentially duplicate the HAMP program.  

            Thus, for all intents and purposes, the vast majority of  
              borrowers who contact their servicers to discuss options for  
              avoiding foreclosure must be run through the HAMP  
              eligibility process, before the servicers may consider those  
              borrowers for other forms of loss mitigation or for  
              foreclosure.  In August 2009, Treasury estimated that at  
              least 85% of mortgage loans in the U.S. were required to be  
              evaluated under HAMP rules.  Although Treasury has not  
              released an updated estimate since then, several more  
              servicers have signed on to the MHA Program, a factor which  
              is likely to have pushed coverage above 85% of all mortgage  
              loans.  

            The MHA Program has been modified, augmented, and clarified  
              several times since its introduction, through the issuance  
              of Supplemental Directives.  Treasury issued ten  
              Supplemental Directives during 2009 (two of which were  
              significantly modified during 2010), and has so far issued  
              four Supplemental Directives during 2010, the most recent of  
              which was issued on May 11, 2010.  More Supplemental  
              Directives, and more modifications to existing Supplemental  
              Directives, are likely, as Treasury works with servicers and  
              housing advocates to help refine and improve its Making Home  
              Affordable programs.   

            Servicers who are not required to adhere to HAMP guidelines  
              and directives generally fit into one of three categories --  
              community banks, credit unions, and other small lenders.   
              Because very few of these institutions took TARP money, and  
              very few have signed up to participate in MHA, borrowers  
              whose loans are serviced by these types of institutions are  
              often evaluated, using the lender's in-house loss mitigation  
              programs.  





                                                 SB 1275 (Leno), Page 9




             4.  Support   SB 1275 is strongly supported by consumer groups,  
              housing counseling organizations, and organized labor.  All  
              of these groups see SB 1275 as a way to prevent unnecessary  
              foreclosures in California.  

            HERA, the group that drafted the proposal which formed the  
              basis for SB 1275, writes that a number of obstacles stand  
              in the way of achieving large-scale reductions in the number  
              of foreclosures in California.  HERA believes that SB 1275  
              will ensure that no homes are unnecessarily foreclosed on,  
              if they can be saved from foreclosure under existing  
              programs.  "Borrowers and housing counselors throughout the  
              State report that they regularly face seemingly  
              insurmountable obstacles when they contact loan servicers  
              for assistance.  These include delays of many months to over  
              a year in processing applications; financial and other  
              documentation lost by the servicer; repeated requests from  
              the servicer for the borrower to send in additional  
              documentation or to send in the same documentation over and  
              over again; miscalculations or misreading of borrower income  
              leading to mistaken denials; misapplication and  
              misrepresentation of investor guidelines and restrictions  
              leading to mistaken denials; inconsistent, inaccurate and  
              contradictory information provided to borrowers about their  
              rights and obligations; foreclosures conducted while a  
              modification application is pending (or while a trial plan  
              is in effect) because the servicer failed to instruct the  
              foreclosure trustee to postpone the sale; and unnecessary  
              foreclosures conducted after an erroneous denial.

            "In the vast majority of cases, borrowers and their advocates  
              are confronted with an overwhelming lack of information and  
              communication from the servicer - about the status of their  
              applications, the documentation they need to provide, and,  
              in the event a borrower is notified that an application has  
              been denied, about the reasons for the denial.  This lack of  
              transparency makes it nearly impossible for borrowers to  
              figure out where they are in the review process or assess  
              whether a denial is erroneous."  
             
            Consumers Union (CU) writes, "By requiring servicers to screen  
              borrower's for eligibility for a federal HAMP loan  
              modification, or it's own modification program, before  
              filing a notice of default, eligible borrowers have an early  
              opportunity to enter into a loan modification to stay on  
              track with their mortgage payments before falling further  




                                                 SB 1275 (Leno), Page 10




              behind and entering the foreclosure pipeline."  

            The Center for Responsible Lending (CRL) believes that SB 1275  
              "provides the right policy to ensure that borrowers are not  
              harmed while the banks are trying to 'do better.'"  The bill  
              "ensures that homeowners who are willing and able to stay in  
              their homes through an appropriate mortgage modification  
                                                       would not lose that opportunity because the shortcomings of  
              their servicer and California's foreclosure process worked  
              against them."  

            CRL strongly supports the remedies contained in the bill, and  
              observes that neither California law nor HAMP guidelines  
              provide recourse for borrowers who wrongfully lose their  
              homes due to a servicer's errors or failure to comply with  
              legal or program requirements.  "Having a carefully crafted  
              private enforcement action is essential to ensuring that  
              servicers uphold the law's requirements and provide  
              meaningful remedies to harmed families."  

            Several housing counseling and consumer advocacy  
              organizations, including the California Reinvestment  
              Coalition, CALPIRG, Alliance of Californians for Community  
              Empowerment, Coalition for Quality Credit Counseling,  
              Consumer Credit Counseling Service of the North Coast,  
              Neighborhood Housing Services of Silicon Valley, Contra  
              Costa Interfaith Supporting Community, and many others, sent  
              very similar letters, in which they assert that existing law  
              has failed to prevent avoidable foreclosures in significant  
              numbers.  Stories abound regarding lost paperwork,  
              miscalculations of income leading to mistaken denials,  
              unclear, irrelevant, or inconsistent grounds for denials,  
              foreclosures occurring even while borrowers are under  
              consideration for a loan modification, and foreclosures  
              occurring even after borrowers have successfully completed a  
              trial modification.  "No one benefits - not the servicer,  
              not the investors, not the homeowners, not the community,  
              and not the economy -- when a home is sold in foreclosure  
              that was previously being saved through a loan  
              modification."

             5.  Opposition    A coalition of financial services and  
              building industry trade groups, together with the California  
              Chamber of Commerce, sent a joint letter of opposition to SB  
              1275.  "While we endeavor to understand the intricacies of  
              this measure and its impact, we argue that the bill  




                                                 SB 1275 (Leno), Page 11




              exemplifies an overly complicated formula that will be  
              layered onto recently enacted borrower outreach efforts to  
              further frustrate and prolong existing foreclosure and loss  
              mitigation efforts."  The coalition believes that SB 1275  
              will add to the complexity of the loss mitigation process  
              for servicers and create a series of procedural traps that  
              will lead to ever-increasing litigation.  In addition, they  
              observe that SB 1275 would inappropriately intervene in  
              pending litigation that has resulted from enactment of SB  
              1137.

            The coalition also observes that, given recent changes to  
              HAMP, and given the likelihood of new changes to the program  
              in the near future, SB 1275 is unnecessary and may conflict  
              with federal programs.  At a minimum, the bill continues a  
              trend of delaying or stretching out the foreclosure process,  
              which will delay economic recovery, further frustrate local  
              governments struggling with properties in disrepair, and  
              artificially sustain depressed property values.   

            The California Credit Union League is also opposed, noting  
              that credit unions have modified 80% of delinquent credit  
              union real estate loans.  SB 1275 is likely to add  
              additional time to the foreclosure process, threatening  
              economic recovery and causing local governments to deal with  
              blighted properties.  This additional delay will also result  
              in many credit union borrowers living in homes without  
              paying their mortgages, which, in turn, will place a strain  
              on credit unions and their members.  Unfortunately, the push  
              to modify every mortgage loan is often at odds with  
              regulators who monitor financial institutions' capital  
              levels, in order to protect all depositors.  

            The Civil Justice Association of California (CJAC) opposes SB  
              1275, on the basis that the bill imposes a host of detailed  
              new requirements on lenders, creating new obligations for  
              them to fulfill before they foreclose.  Violations are  
              enforceable by a lawsuit.  Forcing nonjudicial foreclosures  
              into court will only help lawyers and clog our  
              already-overburdened courts.   CJAC notes that California's  
              nonjudicial foreclosure process is already highly regulated.  
               There is no need to insert lawyers and lawsuits into the  
              process.  







                                                 SB 1275 (Leno), Page 12




             6.  Prior and Related Legislation:   

                  a.        Key prior legislation, including SB 1137  
                    (Perata), Chapter 69, Statutes of 2008, SB 7  
                    (Corbett), Chapter 4, 2009-2010 Second Extraordinary  
                    Session, and AB 7 (Lieu), Chapter 5, 2009-2010 Second  
                    Extraordinary Session are described in the Existing  
                    Law section of this analysis.  Related, pending  
                    legislation is summarized below;

                  b.        AB 1639 (Nava), 2009-2010 Legislative Session:  
                     Would establish the Mediated Mortgage Workout  
                    Program, subject to the availability of federal  
                    funding, as specified.  Pending on the Assembly Floor.  
                     

           POSITIONS
          
          Support
           
          Affordable Housing Services
          Alliance of Californians for Community Empowerment
          California Alliance for Retired Americans
          California Capital Financial Development Corporation
          California Coalition for Rural Housing
          California Conference Board of the Amalgamated Transit Union
          California Conference of Machinists
          California Human Development Corporation
          California Labor Federation
          California Reinvestment Coalition
          CALPIRG
          Causa Justa:Just Cause
          Center for Responsible Lending
          City of Martinez
          City of Porterville
          Coalition for Quality Credit Counseling
          Community Financial Resources
          Community Housing Works, San Diego
          Consumer Credit Counseling Service of the North Coast
          Consumer Federation of California
          Consumer Legal Services in East Palo Alto
          Consumers Union
          Contra Costa Interfaith Supporting Community Organization
          Council on Aging Silicon Valley
          East LA Community Corporation
          East Palo Alto Council of Tenants Education Fund




                                                 SB 1275 (Leno), Page 13




          Housing and Economic Rights Advocates
          Inland Fair housing and Mediation Board
          International Longshore and Warehouse Union
          JOLT, Coalition for Responsible Investing
          Law Foundation of Silicon Valley
          Neighborhood Housing Services of Orange County
          Neighborhood Housing Services of Silicon Valley
          Novadebt
          Oakland Community Organizations
          Opportunity Fund
          Orange County Fair Housing Council, Inc.
          Professional and Technical Engineers, IFPTE Local 20
          Public Counsel
          Rural Community Assistance Corporation
          Sacramento Gray Panthers
          Sacramento Housing Alliance
          Sacramento Mutual Housing Association
          Southern California housing Rights Center
          The Mission Economic Development Agency
          United Food & Commercial Workers Western States Council
          UNITE-HERE
          Vallejo Neighborhood Housing Services, Inc.
          Vermont Slauson Economic Development Corp.
          Yolo Mutual Housing Association
           
          Oppose
               
          California Bankers Association
          California Building Industry Association
          California Chamber of Commerce
          California Council of Engineering Companies of California
          California Credit Union League
          California Financial Services Association
          California Independent Bankers
          California Land Title Association
          California Mortgage Association
          California Mortgage Bankers Association
          Civil Justice Association of California
          Securities Industry and Financial Markets Association
          United Trustees Association

          Consultant:  Eileen Newhall  (916) 651-4102