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by CareyBot

Editor's note: This story has been edited to clarify that SB 1178 had not been signed into law.The California Assembly has rejected a bill that would have placed more homeowners under the protection of an existing state law that requires loan servicers to consider distressed borrowers for a loan modification before beginning foreclosure proceedings on them.SB 1275, which sailed through the Senate on June 3 in a 21-12 vote, failed to garner enough support in two Assembly votes. The bill went down to defeat Monday in a 30-36 vote that was mostly on party lines, with Democrats supporting the bill and Republicans opposed.The Center for Responsible Lending issued a statement Wednesday calling the bill "the major foreclosure prevention legislation of the session," and attributing the...