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I am 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.
Escrow professionals play an important role in major financial transactions, such as buying a home, helping securely handle money and important documents until the transaction is completed.
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.
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. By making these commonsense protections permanent, SB 946 helps ensure a fair and transparent process for escrow professionals while maintaining lenders’ ability to make informed decisions.
This legislation received bipartisan support and no opposition.
It is a privilege to be your State Senator. Thank you for this opportunity to be of service.