California foreclosure law draws industry fire

'Homeowner Bill of Rights' could restrict supply of short sales, REOs

A package of bills designed to protect California homeowners facing foreclosure and signed into law Wednesday have drawn praise from consumer groups and criticism from some industry participants.

Identical bills S.B. 900 and A.B. 278, which make up the key provisions of the legislation, were passed by the state Legislature last week and will go into effect Jan. 1, 2013.