Transcript Highlights:

• Number two, the second goal out of that program is to get them into FHA loans because it's a lower rate
• , and so we want our homes to be able to qualify for FHA loans, which are a significant part of the..
• . ...homes to be able to qualify for FHA loans, which are a significant part of the home-buying market
• Somewhere about 50% to 60% of all purchases are FHA loans, so we have committed financially specifically

Summary: The committee first considered the reappointment of Troy L. Campbell to the Arizona State Liquor Board. Campbell described his nearly 10 years of service, his role as chair since 2019, and his focus on fairness, public safety, and applying the law consistently. He answered questions about the board’s workload and authority, noting it hears roughly 40 to 50 cases a year and does not issue fines. With no public testimony, the committee voted 6-0 to recommend his confirmation to the full Senate. The committee then heard several liquor and consumer-related bills. SB 1478, an annual liquor-policy cleanup bill, made technical changes to liquor statutes, including conforming the definition of cider to federal tax law and clarifying other terminology. The bill drew support from industry stakeholders and neutral testimony from the Department of Liquor Licenses and Control; the committee adopted a clarifying amendment and recommended the bill do pass as amended. SB 1108 would require Swedish rounding of cash transactions when pennies are unavailable, with signage and enforcement provisions; an amendment removed an individual-item exemption and clarified tax calculations, and the bill passed as amended with support from business groups. SB 1205 would regulate private-property vehicle booting by setting signage, notice, fee, and recordkeeping requirements and making violations a misdemeanor; members raised concerns about appeals and signage on non-parking property, but the committee adopted a technical amendment and recommended the bill do pass as amended. The committee also took up SB 1241, which would allow private permitting providers to conduct plan reviews and inspections for single-trade residential projects without municipal or county approval. Supporters argued it would reduce delays and costs for homeowners and help cities focus on higher-priority work, while cities and counties opposed the bill on public-safety and local-control grounds, warning about private incentives and inspection quality. After adopting an amendment granting immunity to municipalities that rely on private providers, the committee recommended the bill do pass as amended by a 5-2 vote, with some members explaining their votes and asking for further stakeholder work. Finally, the committee heard SB 1366, which creates a Public Property Towing and Impound Practices Study Committee to review towing fees, standards, insurance, background checks, and related DPS policies, and to report recommendations by the end of 2026. Supporters said the study would help address inconsistent standards and consumer concerns before permanent changes are made. Some members objected that the study committee did not include minority-party appointments, but the sponsor said that could be addressed later. The committee adopted a strike-everything amendment and recommended the bill do pass as amended. The committee then began SB 1431, a housing-design bill limiting municipal design standards and restrictions on certain shared features, but the transcript cuts off during extended debate and no final action on that bill is shown.

Transcript Highlights:

• I'm here today on behalf of FHA and our more than 260 member hospitals and health systems to speak in
• I'm here today on behalf of FHA and our more than 260 member hospitals and health systems to speak in

Summary: The Judiciary Committee met to consider HB 6003, a bill to repeal Florida’s “free kill” law that limits certain survivors’ ability to recover non-economic damages in medical negligence wrongful death cases. The sponsor, Rep. Trabulsy, said the bill would restore access to the courts for a small class of families and noted the measure passed both chambers last year before being vetoed by the governor. She and supporters framed the bill as a fairness and constitutional issue, while opponents argued repeal would increase malpractice exposure, insurance costs, and pressure on physician access, especially in high-risk specialties and rural areas. Public testimony was sharply divided. Supporters included family members who described deaths they said were caused by medical negligence and who argued the current law denies accountability and equal treatment based on marital status or whether a decedent had minor children. Opponents included the Florida Hospital Association, Florida Medical Association, Florida Chamber, U.S. Chamber, Florida Insurance Council, and other health care and business groups, who warned that repeal could worsen already high malpractice premiums, contribute to physician shortages, and destabilize access to care. Several speakers on both sides discussed possible caps on non-economic damages as a compromise, though the bill itself was presented as a clean repealer with no amendments. During debate, several members spoke in support, emphasizing equal access to the courts and rejecting the idea that the law should treat some families differently from others. Opponents of the bill argued that the current system helps preserve market stability and that liability concerns, not the free kill law, are driving provider departures. After closing remarks from the sponsor, the committee voted 15 yeas and 1 nay to report HB 6003 favorably.

Transcript Highlights:

• If you're a FHA, anything... ...governed by FHFA or RESPA, the Real Estate Settlement.
• Basically, the FHA came out with that a couple of years ago.

Bills: HB303 , HB 1107 , HB 1063 , HB1517 , HB1991 , HB2464 , HB3509 , HB3527 , HB303

Committee: House Intergovernmental Affairs

Keywords: municipality, local government, Type A, Type B, Type C, change authority, emergency medical services, civil service status, municipal government, public safety, local government code, school funding, education, state budget, local control, equity, tenant legal services, eviction, low-income tenants, disability rights

Transcript Highlights:

• months depending on the program, and the guidelines of the loan owner, such as Fannie Mae, Freddie Mac, FHA
• So we sell to Fannie Mae, Freddie Mac, the GSEs, and also the federal agencies—FHA, USDA, VA—and they
• it's going to be sold so so we sell to Fannie Mae Freddie Mac the GSEs and also the federal agencies FHA

Committee: House Banking and Finance

Transcript Highlights:

• A conventional loan is a loan under the federal conforming loan limit that is not insured by VA or FHA
• insured</c><00:06:36.919><c> by</c><00:06:37.199><c> VA</c><00:06:38.039><c> or</c><00:06:38.520><c> FHA
• </c><00:06:39.520><c> and</c><00:06:39.639><c> is</c><00:06:39.800><c> not</c> not insured by VA or FHA
• </c><00:07:01.639><c> requirements</c> protections under VA or FHA requirements protections under VA
• or FHA requirements or<00:07:02.879><c> Fanny</c><00:07:03.280><c> May</c><00:07:03.560><c> or</c><00

Bills: HF1865 , HF2014 , HF2028

Committee: House Commerce Finance and Policy

Keywords: mortgage, qualified mortgage, QM, points and fees, conventional loan, consumer lending, home loan, residential real estate, lender fees, service charge, finance charge, closing costs, Minnesota Statutes 47.20, housing finance, borrower protections, cooperative apartment loan, contract for deed, real estate lending, foreclosure, notice requirements

Transcript Highlights:

• conventional loan is a loan under the federal conforming loan limit that is not insured by the VA or FHA
• conventional loan is a loan under the federal conforming loan limit that is not insured by the VA or FHA
• standards, with the intent of providing consumer protections on loans that lack protection under the VA or FHA
• under</c><00:50:50.160><c> the</c><00:50:50.319><c> VA</c><00:50:51.040><c> or</c><00:50:51.280><c> FHA
• </c> protection under the VA or FHA protection under the VA or FHA requirements<00:50:52.960><c> or</

Committee: Senate Commerce and Consumer Protection

Transcript Highlights:

• residents that brings down the annual cost of housing $1,750 and about 16% of the project qualified for FHA
• how being at that lower price point and having that figures in to, yeah, like you said, I think the FHA
• and that kind of thing. ...figures into, yeah, like you said, I think the FHA and that kind of thing
• Chairman, FHA loans are a significant part of the market in the Phoenix area.
• If you can qualify for an FHA loan, your financing costs are lower, and so by bringing down the front

Bills: HB2128 , HB2255 , HB2397 , HB2429 , HB2591 , HB2680 , HB2834 , HB2868 , HB2911 , HB2951 , HB2979 , HB2991 , HB2996 , HB2999 , HB4001 , HB4011 , HB4017 , HB4020 , HB4026 , HB4086 , HB4088 , HB2244 , HB2342

Committees: House Commerce , House House Commerce Committee of Reference

Keywords: homeowners associations, condominiums, open meetings, governance, transparency, Arizona Teachers Academy, teacher preparation, education funding, public schools, scholarships, teacher certification, community colleges, vacation rentals, short-term rentals, state preemption, local government regulation, occupancy limits, civil penalties, apprenticeships, job training

Transcript Highlights:

• first-time home buyers, and when the class was filed, we needed to report that to Fannie Mae, Freddie Mac, FHA
• /c><00:49:33.280><c> May</c><00:49:33.839><c> Freddy</c><00:49:34.200><c> Mack</c><00:49:34.520><c> FHA
• </c> report that to Fanny May Freddy Mack FHA report that to Fanny May Freddy Mack FHA VA<00:49:35.880

Committee: House Consumer Protection & Commerce

Summary: The Consumer Protection and Commerce Committee met on February 12 and heard several bills. HB 97, relating to travel insurance, drew only brief testimony: the Insurance Division stood on written testimony, one industry witness supported the bill and requested a minor amendment, and no one else testified or asked questions. HB 226, relating to window tinting, received support from the Department of Transportation, while the Honolulu Police Department offered comments on the proposed amendments, asking for clearer language on what it means to roll windows down, when the requirement applies, how it handles bad weather, and what sanctions would apply for noncompliance. No further testimony was offered on that measure. The committee also heard HB 1179, relating to rural emergency hospitals. The Department of Human Services stood on written testimony, and Maui Health Systems strongly supported the bill, saying it would help critical access hospitals better serve kūpuna and provide long-term care beds. There were no questions or additional testimony. HB 420, relating to remedies and the contractor repair act, generated extensive and sharply divided testimony. Opponents, including attorneys representing homeowners and AARP Hawaii, argued the bill was anti-consumer, would weaken homeowners’ ability to recover for construction defects, and would shift costs and risk to consumers. Supporters, including builders, realtors, the Chamber of Commerce, and D.R. Horton Hawaii, said the bill would create a more balanced and efficient process, reduce unnecessary litigation, and help builders address legitimate defects more quickly. Testimony on HB 420 focused heavily on whether the contractor repair process and class actions help or hinder repairs. Opponents said the bill would delay or limit homeowner recovery, especially for life and safety defects, while supporters said current class-action litigation can prevent direct communication with homeowners and slow repairs. Committee members asked questions about when communication with homeowners stops and whether repairs could be made before a class is certified. No votes or final committee actions were taken during the portion of the meeting provided.

Transcript Highlights:

• don't have the exact number in front of me, but our delinquency rates are very low, below the, uh, Uh, FHA
• national, and most of our loans are on the FHA side.
• Uh, but compared to the FHA, the national averages are delinquency rates are lower.

Committee: House Mortgage Finance Authority Act Oversight Committee

Transcript Highlights:

• 22.640><c> through</c><00:26:23.159><c> PH</c> a family housed through PH a family housed through PH FHA
• FHA FHA FHPAP<00:26:27.520><c> compared</c><00:26:28.000><c> to</c> FHPAP compared to FHPAP compared

Transcript Highlights:

• are you aware that many of these programs already have owner-occupancy requirements under the federal FHA
• Representative Carter's bill, she wants to extend the time for two years, and federal guidelines through FHA
• mortgages require one-year occupancy, so that would potentially create an issue with FHA mortgages,
• Issue with FHA mortgages, which are the majority of the types of mortgages that are used for down payment

Summary: The House convened with prayer, the Pledge of Allegiance, attendance, guest introductions, and several ceremonial proclamations, including recognition of Dr. Joseph Torkelson for his service in pediatric oncology and military medicine. Members also introduced guests connected to Arizona Bleeding Disorders, charter schools, and a suicide-prevention effort tied to HB 2665 (“Cade’s Law”). The chamber then moved through multiple Committee of the Whole calendars, considering a large number of bills and resolutions. On the first calendar, the House gave do pass recommendations, mostly as amended, to HB 2117, 2744, 2751, 2917, 2939, 2957, 2970, and HCR 2038. The amendments addressed topics such as natural resource conservation district boundaries, manufacturing and jobs, Real ID/non-Real ID data privacy, and Colorado River conservation and tribal/community representation. The House then adopted the Committee of the Whole report and sent the measures for engrossing; a later motion to amend the report to include the defeated Villegas amendment on HB 2667 failed by roll call vote, 22-32 with 6 not voting. In the next calendars, the House advanced HB 2015, 2129, 2327, 2439, 2533, 2667, 2793, 2873, HCR 2044, and others, with several floor or committee amendments adopted. Debate focused on homelessness coordination in HB 2533, homebuyer assistance and corporate ownership concerns in HB 2667, annexation and local control in HB 2793, and a proposed constitutional referral in HCR 2044 aimed at closing loopholes for discrimination in public programs. The House also considered HB 2044 and HB 2076 in the Judiciary calendar, with debate over the scope of a homicide-disposal statute in HB 2044 and school safety/teacher firearms issues in HB 2076; both bills advanced as amended. The final calendar covered natural resources, energy, and water bills. The House advanced HB 2014, 2055, 2145, 2185, 2267, 2340, 2428, 2696, 2798, 2955, 2975, and 2986, with amendments on drought definitions, emissions permitting, mineral district mapping, and environmental enforcement authority. HB 2267 drew the sharpest debate, with opponents arguing it would hinder solar and wind development and supporters arguing for diversification toward coal, gas, and nuclear; after a division vote, the bill still received a do pass recommendation. The session concluded with the Committee of the Whole rising and reporting, and the House adopting the report and assigning the measures accordingly.

Transcript Highlights:

• are you aware that many of these programs already have owner-occupancy requirements under the federal FHA
• Representative Carter's bill, she wants to extend the time for two years, and federal guidelines through FHA
• mortgages require one-year occupancy, so that would potentially create an issue with FHA mortgages,
• Issue with FHA mortgages, which are the majority of the types of mortgages that are used for down payment

Transcript Highlights:

• At condo projects, buyers cannot secure FHA, VA, USDA, Fannie Mae, and Freddie Mac warrantable mortgage
• At condo projects, buyers cannot secure FHA, VA, USDA, Fannie Mae, and Freddie Mac warrantable mortgage
• At condo projects, buyers cannot secure FHA, VA, USDA, Fannie Mae, and Freddie Mac warrantable mortgage
• At condo projects, buyers cannot secure FHA, VA, USDA, Fannie Mae, and Freddie Mac warrantable mortgage
• At condo projects, buyers cannot secure FHA, VA, USDA, Fannie Mae, and Freddie Mac warrantable mortgage

Committee: House Housing

Summary: The Committee on Housing held a public hearing on January 31 and heard testimony on a series of housing and building-code bills. The first major item, HB 1 relating to building codes, drew sharply divided testimony. Supporters, including BIA Hawaii, Grassroot Institute, Dr. Horton, and several builders and trade groups, argued the current code-adoption process is slow, fragmented, and costly, and that reform would help housing production. Opponents, including Sierra Club Hawaii, AIA Hawaii, ICC, and labor representative Kiko Bosi, said the bill would weaken public safety, reduce statewide consistency, and could leave tenants and first responders at greater risk. No vote was taken during the hearing, and members asked questions about the effect of a governor’s emergency proclamation suspending the Building Code Council and about county authority over code amendments. The committee then heard HB 745 and HB 1321, both also relating to building codes. Grassroot Institute supported both measures, saying the system is broken and needs streamlining, while BIA Hawaii and others emphasized the cost burden of repeated code updates. Opponents, especially Bosi and ICC, argued that the bills would undermine the State Building Code Council’s role, create confusion, and prioritize cost over safety; Bosi also said labor should be included in any code discussions. Members questioned whether counties can remove state code provisions and whether the state code already supersedes county codes, and one member noted the need for clarity and consistent enforcement rather than a wholesale overhaul. Later, the committee heard HB 284 on housing, HB 761 on county permitting and inspection, and HB 738 on historic preservation. HB 284 drew support from several housing and real estate groups, while DLNR opposed it. On HB 761, HHFDC supported the bill, DLNR warned that the proposed changes could jeopardize Hawaii’s participation in the National Flood Insurance Program, DAGS said it would likely need to duplicate county permitting staff, and the Department of Planning and Permitting opposed it; Grassroot Institute and NAIOP supported it. For HB 738, HHFDC, DLNR, Grassroot Institute, Hawaii YIMBY, NAIOP, and others supported the measure, with Grassroot and NAIOP suggesting clarifications so expedited review would also cover mixed-use projects and better define the scope of work. The transcript does not show any final votes or committee action on these bills during the hearing.

Transcript Highlights:

• improve homes on Hawaiian homelands, allowing them to access larger loans that align more closely with FHA
• 23.679><c> administr</c><01:26:24.440><c> ation</c> housing administr ation housing administr ation FHA
• 27.239><c> change</c><01:26:27.639><c> from</c><01:26:27.880><c> the</c><01:26:28.040><c> current</c> FHA
• this is a change from the current FHA this is a change from the current limit<01:26:28.960><c> of</c
• larger loans that align more closely<01:26:54.679><c> with</c><01:26:54.840><c> the</c><01:26:55.040><c> FHA

Committee: House Judiciary & Hawaiian Affairs

Summary: The committee heard testimony on House Bill 410, the Office of Hawaiian Affairs’ biennium operating budget. OHA asked for a modest increase over its base budget, including $1.2 million to fund 13 new full-time positions for a strategy and implementation team tied to its long-term plan, with emphasis on housing, education, health, and economic resilience. OHA also described a broader effort to work directly with executive branch departments to improve outcomes for Native Hawaiians. Testimony was largely supportive, with several individuals speaking in favor and one testifier expressing strong frustration about Native Hawaiian rights and access to resources. The chair noted there were 38 additional written/supporting testimonies and three in opposition. Members asked about OHA’s funding sources and public land trust revenues; OHA said it is not receiving the full 20 percent share, described a public land trust working group and system issues, and said a related bill would seek funding to begin an inventory. No vote was taken in the portion provided. The committee then considered House Bill 304, which would make the Hawaiian version of a law binding when the law was originally drafted in Hawaiian and later translated into English. The Judiciary supported the bill, saying it reinforces Hawaiian as an official language and looks to the original language for legislative intent. The Attorney General supported the intent but recommended narrowing the bill with a proviso to avoid ambiguities, limiting it to laws originally drafted in Hawaiian that were not later amended, codified, recodified, or reenacted in English. Public testimony was generally supportive, though one speaker raised broader sovereignty concerns. Members questioned how many laws would be affected and whether the proposed amendment would undercut the bill; the Attorney General said the amendment was meant to address uncertainty in interpretation. No final action was reported. Finally, the committee heard House Bill 603, which would direct OHA to administer a Native Hawaiian business marketing program to promote Native Hawaiian-owned businesses through marketing and technical assistance. OHA supported the concept, saying a label or branding program could help consumers identify and support Native Hawaiian-owned businesses, but requested that funding be redirected to a working group to study program design, implementation, enforcement, and long-term viability. The chair noted four supportive testimonies had been received, and a member asked OHA to confirm that its programs serve all Hawaiians, not only those eligible for homelands; OHA said it serves all Hawaiians in the state. The transcript ends before any vote or further action on HB 603.

Transcript Highlights:

• It's not to make fair, the FHA all of a sudden cumbersome and not used.

Committee: Senate Housing & Land Use

Summary: The Senate Land Use Committee met in hybrid format but did not have a quorum, so it did not approve minutes or take formal votes. The committee first heard House Bill 457, which would raise the appraisal threshold for certain DELDOT real property dispositions from $10,000 to $25,000 to match federal highway standards and reduce the time and cost of selling small surplus properties. There was little discussion and no public comment on that bill, and the chair indicated it would be circulated. The committee then took up House Bill 451, which would codify a disparate impact framework under Delaware’s Fair Housing Act. The bill was described as clarifying that housing policies or practices can violate the law even without discriminatory intent if they have an unjustified discriminatory effect on a protected class, using a burden-shifting test similar to federal law. The sponsor and DHSA said the measure was intended to preserve fair housing protections amid uncertainty at the federal level, and an additional amendment was discussed that would delay implementation for 180 days and require DHSR, with DSA and stakeholders, to conduct outreach, education, and training. Public testimony was divided. Supporters, including Housing Alliance Delaware, YWCA Delaware, and the Delaware Human and Civil Rights Commission, said the bill would protect against discriminatory outcomes, align state law with longstanding fair housing principles, and preserve recourse if federal enforcement changes. Opponents and housing-provider groups, including the Delaware Association of Realtors, Greater Wilmington Housing Providers, and the Delaware Apartment Association, argued the bill could create liability for neutral policies, rely on statistical outcomes landlords cannot easily measure, and increase litigation and costs; several asked for more time, a right-to-cure process, or further amendments. The committee adjourned without taking a formal vote.

Transcript Highlights:

• to a second school to play a second sport, it would become a governing entity, which would be their FHA

Transcript Highlights:

• residents that brings down the annual cost of housing $1,750 and about 16% of the project qualified for FHA
• how being at that lower price point and having that figures in to, yeah, like you said, I think the FHA
• Chairman, FHA loans are a significant part of the market in the Phoenix area.
• If you can qualify for an FHA loan, your financing costs are lower, and so by bringing down the front—the

Committee: House House Commerce Committee of Reference

Summary: The Commerce Committee heard and passed several bills dealing with insurance fraud funding, education scholarships, apprenticeships, workers’ compensation fraud, credit unions, manufactured home installation licensing, short-term rentals, homeowners associations, condo disclosures, and an advanced manufacturing infrastructure reimbursement program. HB 4020 would raise the annual insurer assessment cap for the Department of Insurance and Financial Institutions fraud unit from $1,050 to $1,350; it passed after testimony from Nationwide supporting the added resources. HB 2255 would extend Arizona Teachers Academy scholarship eligibility for community college students from two academic years to four, and HB 2591, as amended, would revise the definition and requirements for registered apprenticeships under DES standards; both passed unanimously. HB 2680, as amended, would narrow and clarify workers’ compensation fraud-related provisions and insurance disclosure requirements, and HB 2979, as amended, would modernize credit union bylaws, name changes, and operating powers; both also received due pass recommendations. HB 2868, which adds insurance and fingerprint-clearance requirements for manufactured home/mobile home installation licensees and gives the Department of Housing additional licensing authority, passed with some members present or voting no. The committee also took up HB 2429, a strike-everything amendment on short-term rentals that would let local governments set occupancy limits, extend the violation window for suspension actions from 12 to 24 months, and allow suspension after certain building code violations. The sponsor and city officials described it as a compromise giving communities more local control, while short-term rental owners and neighborhood advocates raised concerns about overbroad enforcement and the scale of the housing impacts; the bill passed 8-2 with one present. HB 4011, which would codify duties for condominium and planned community associations to act reasonably and provide access to information, was heard without the proposed Carter amendment and passed 11-0 after testimony from homeowners, attorneys, and HOA representatives about fairness and enforceability. HB 2397, another HOA-related bill, would expand disclosure requirements for condo and association purchases and escrow information; it passed unanimously after supporters said it would improve consumer transparency. Finally, the committee heard HB 4026, which would change the public infrastructure reimbursement program for advanced manufacturing projects by replacing the current statewide cap with a $75 million annual cap and requiring more transparency for related agreements. Supporters, including Queen Creek’s mayor, GPEC, and the Arizona Chamber, said the program helps fund roads, water, wastewater, and other infrastructure needed to attract large manufacturing investments and jobs, while some members questioned the budget impact and whether the program benefits rural areas. The discussion emphasized projects such as LG in Queen Creek and other major manufacturing investments, with supporters arguing the bill preserves Arizona’s competitiveness and generates long-term tax revenue.

Transcript Highlights:

• A lot of these are FHA or low down payment loans, but not all of them, so it just allows people to achieve
• lot</c><01:28:31.679><c> of</c><01:28:31.760><c> these</c><01:28:31.880><c> are</c><01:28:32.119><c> FHA
• </c><01:28:32.560><c> or</c><01:28:32.719><c> low</c><01:28:32.960><c> down</c> a lot of these are FHA
• or low down a lot of these are FHA or low down payment<01:28:33.760><c> loans</c><01:28:34.119><c> but

Committee: House Housing

Transcript Highlights:

• months depending on the program, and the guidelines of the loan owner, such as Fannie Mae, Freddie Mac, FHA
• We sell to Fannie Mae, Freddie Mac, the GSEs, and also the federal agencies—FHA, USDA, VA—and they all

Summary: The Assembly Banking and Finance Committee held an outcomes review of AB 238, the wildfire mortgage forbearance law, focused on how the law has worked for survivors of the Eaton and Palisades fires. Chair Valencia and Assemblymember Harabedian said the hearing was intended to hear directly from survivors, assess whether the law is being implemented as intended, and identify fixes. Several survivors described losing homes, facing long rebuild timelines, and struggling with insurers, housing costs, and mortgage servicers. Many said they encountered confusion, inconsistent information, requests for financial documentation, lump-sum repayment demands, credit reporting problems, or loan modifications that they viewed as undermining the law’s purpose. Some urged clearer consumer education, a consumer bill of rights, and an extension of forbearance relief; one witness specifically advocated for AB 1847 to extend forbearance to 36 months. DFPI Chief Deputy Commissioner Suzanne Martindale said the department had received about 300 wildfire-related consumer complaints, mostly about mortgage forbearance, and that more than 91% had been resolved in the consumer’s favor. She said the department works with both state-licensed and federally regulated institutions, but its authority is limited when national banks are involved, so it often uses outreach and direct contact with lenders and federal partners to resolve complaints. She also described recurring complaint themes such as difficulty obtaining forbearance, customer-service breakdowns, withholding of insurance funds, and non-interest-bearing impound accounts. Committee members pressed DFPI on which institutions were noncompliant, what enforcement tools were available, and how much data the state could collect and make public. Representatives of the California Bankers Association and California Mortgage Bankers Association said lenders had provided early disaster relief and were working to comply with AB 238, but emphasized that mortgage servicing is constrained by federal law, investor requirements, and secondary-market guidelines. They argued that forbearance is temporary relief, not forgiveness, and warned that extending it without a clear repayment path can create future payment shock or larger debt burdens. They also said many servicers use disaster protocols tied to federal declarations and that clearer communication is needed. In response to committee concerns, the mortgage bankers said they would continue working with the Legislature and federal agencies, but could not promise changes beyond investor and agency rules. No votes or formal committee actions were taken during the hearing.

Transcript Highlights:

• So, in scenario 1, let's bring that $425,000 house back with an FHA loan. 3.5% down at 6.25% interest

Committee: House Public School Capital Outlay Oversight Task Force