The California Senate Transportation and Housing Committee on Tuesday unanimously approved SB 447, which would prohibit the California Housing Finance Agency from foreclosing on borrowers who are renting their homes out and are current on their mortgages

CalHFA had agreed in November to temporarily stop foreclosing on those homeowners. Homeowners who purchase their homes through the agency are barred from renting them out, to prevent investors from misusing the program designed to provide affordable loans for potential homeowners. The housing crunch has left many borrowers unable to sell their homes if circumstances force them to move.

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