'Buyer's Choice Act' (AB 957/Galgiani) Signed Into Law

Legislation Protects Consumers Purchasing Foreclosed Properties

SACRAMENTO, Calif., Oct. 13 /PRNewswire/ -- The Escrow Institute of California
announced today that Governor Schwarzenegger signed Assembly Bill 957 into
law. This bill, authored by Assembly Member Cathleen Galgiani (D-Tracy),
protects consumers by ensuring that they have the right to choose their own
real estate service providers when purchasing foreclosed properties.

AB 957, known as the Buyer's Choice Act, prohibits sellers of so-called REO
properties - typically foreclosed properties owned by banks - from requiring
the buyer to use a particular title company, escrow settlement or other real
estate service provider. This unethical, anti-competitive practice drives up
costs for homebuyers and takes business away from locally owned companies. The
problem has become particularly acute in the Central Valley and Inland Empire,
areas that have faced some of the highest foreclosure rates in the country.
Recent data indicate that 11 of the nation's top 20 foreclosure rates are in
California metropolitan areas.

"Homebuyers should have every right to choose their title, escrow and real
estate service providers based on price and quality of service," said Assembly
Member Cathleen Galgiani. "AB 957 ensures that buyers can make marketplace
choices that suit their own best interests, rather than getting forced to
serve the financial interests of some international bank or other
corporation."

The Buyer's Choice Act enjoyed overwhelming, bi-partisan support in the
Legislature, with State Senator Jeff Denham (R-Merced) providing important
assistance. AB 957 was sponsored by the Escrow Institute of California, and
received support from the California Association of Realtors and numerous real
estate professionals from across the state. The bill requires that REO sellers
provide a disclosure notice to buyers informing them of their rights to choose
their own title, escrow and other real estate services. Sellers who violate
the provisions of AB 957 are subject to enforcement action by state regulators
and liable to buyers for civil penalties.

"It's just not right that independent escrow companies and other local real
estate businesses are being literally locked out of the foreclosure sales
market," said Escrow Institute of California CEO Tim Egan. "These local
companies oftentimes offer the best price and highest quality of service
available to consumers. Excluding these companies from REO sales kills local
jobs and eliminates competition in the marketplace."

For additional information regarding AB 957, please visit
www.escrowinstitute.org.

Contact: Tim Egan
Chief Executive Officer
(213) 718-3666 or (760) 633-4342

SOURCE Escrow Institute of California

Tim Egan, Chief Executive Officer of Escrow Institute of California,
+1-213-718-3666, or +1-760-633-4342