California Senate Bill SB933

California 2025-2026 Regular Session

• Introduced: 1/29/26
• Refer: 2/11/26

Caption

An act to add Section 22605 to the Financial Code, relating to financial institutions.

Impact

If enacted, SB 933 would have significant implications for the operation of financial institutions in California. It would impose stricter regulations on the financial sector, particularly in the handling of consumer information related to mortgage loans. Violations of these provisions would constitute unlawful business practices, subjecting offenders to enforcement actions by the Attorney General, the Commissioner of Financial Protection and Innovation, and local prosecutors. Additionally, consumers harmed by violations would have the right to pursue legal action for damages and other remedies.

Summary

Senate Bill 933 aims to add Section 22605 to the Financial Code of California, focusing on the regulation of financial institutions concerning the use of mortgage trigger lead information. The bill seeks to prevent financial institutions from engaging in unfair, deceptive, or abusive practices related to the handling of consumer credit information associated with real estate-secured loans. It establishes clear guidelines for financial institutions, including requirements for disclosures about the affiliations with consumers' original lenders or brokers.

Contention

There may be contention surrounding the bill regarding the balance of consumer protection and the operational flexibility of financial institutions. Proponents argue that the bill enhances consumer rights and mitigates risks associated with misleading lending practices. Conversely, critics may contend that increased regulations could impose additional burdens on lenders, potentially leading to tighter credit conditions or higher costs to consumers.