Bill aims to protect foreclosure homeowners
LAS VEGAS (AP) – A Nevada lawmaker says he has a bill to close a provision of state law that he says lets banks and third parties profit from the foreclosure crisis while homeowners’ credit ratings suffer.
Democratic Assembly-man Marcus Conklin of Las Vegas testified Wednesday that state law currently allows banks to sell homeowner debt to third parties at a discount, and lets the buyers of that debt pursue homeowners for the full cost.
Conklin told the Assembly Committee on Commerce, Labor and Energy that homeowners are hurt because their consumer credit ratings are based on the higher amount.
He says his bill would close that gap.
The measure is AB237.
Testimony resumes Friday.