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Sacramento, CA – Senator Kelly Seyarto (R-Murrieta) is proud to announce that SB 946 has been signed into law. The bill permanently extends protections that promote fairness, accuracy, and privacy in escrow industry rating systems while preserving lenders’ ability to evaluate service providers.
Banks and mortgage lenders often use third-party rating services to review escrow companies before approving them to handle transactions. Similar to a credit report, these ratings can determine whether an escrow professional remains on an approved vendor list and can continue working with a lender.
Consumers rely on escrow professionals during major financial transactions, such as buying a home, making it important that the systems used to evaluate these professionals are fair and accurate.
SB 946 ensures escrow professionals can continue to see the information being reported about them, dispute and correct errors, and protect their sensitive personal information. These safeguards were set to expire in 2027 despite having been in place for more than a decade with no known implementation problems.
“Small businesses and professionals should not lose opportunities because of inaccurate information,” said Senator Seyarto. “SB 946 makes these commonsense protections permanent, giving escrow professionals a fair opportunity to correct errors and safeguard their personal information while allowing lenders to properly evaluate the businesses they work with.”
SB 946 received bipartisan support and no opposition.