California Attorney General Bolsters Consumer Rights, Economic Stability Through Key Legal Victories
June 9, 2026, 9:32 am
California Attorney General Rob Bonta achieved significant legal victories. He secured a $4.6 million settlement with mortgage servicer Select Portfolio Servicing for violating foreclosure protections during the COVID-19 pandemic. This action brings consumer relief and enforces the Homeowner Bill of Rights. In a separate federal ruling, Bonta successfully challenged the Trump Administration's unlawful $100,000 H-1B visa tax. This win protects U.S. employers, vital industries, and the national economy from a costly barrier to skilled talent. Both cases underscore California's dedication to consumer justice, economic stability, and maintaining essential services across the state. These efforts bolster homeowner security and workforce strength.
California's top legal officer delivers. Attorney General Rob Bonta actively champions resident protection. His office recently secured two pivotal legal victories. These actions affirm California’s commitment to fairness. They safeguard economic stability. These decisions impact thousands.
One significant win involves mortgage servicing. AG Bonta announced a $4.6 million settlement. This agreement targets Select Portfolio Servicing (SPS). SPS is a major sub-prime mortgage servicer. The company faced allegations of violating state and federal laws. These violations occurred during the COVID-19 pandemic.
The pandemic created immense financial strain. Many Californians struggled with mortgage payments. State laws protect these homeowners. California's Homeowner Bill of Rights (HBOR) offers crucial safeguards. SPS allegedly disregarded these protections.
Investigations revealed several failures. SPS did not adequately inform homeowners. They failed to explain COVID-19 forbearance plans. Forbearance exit options remained unclear. Homeowners lacked information on other loss mitigation alternatives. Mortgage statements incorrectly stated late fees. This caused undue stress.
Tailored discussions were absent. Homeowners nearing forbearance end received inadequate support. SPS failed its obligation for single points of contact. This contact person should guide homeowners. They must understand applications. They must know deadlines. They need updates. SPS fell short.
Loan modification applications faced hurdles. SPS did not ensure proper submission timelines. Homeowners suffered from these lapses. The Attorney General’s investigation confirmed these issues. The settlement addresses these harms directly.
The $4.6 million settlement has two parts. SPS must pay $1.6 million in civil penalties. An additional $3 million goes to consumer relief. Thousands of impacted homeowners will receive payments. They need not apply. They are already identified. Payments will be automatic.
Beyond financial relief, changes are mandated. SPS must implement new procedures. These ensure proper support. Homeowners must receive accurate information. Loan modification processes will improve. Foreclosure prevention options become clearer. This strengthens the HBOR. It protects future homeowners.
The HBOR itself is a robust framework. It mandates notification of foreclosure-prevention options. Servicers must contact homeowners before foreclosure. They must discuss financial situations. They must explore alternatives. Applications for loan modifications require prompt acknowledgment. Servicers must identify missing information quickly.
A guaranteed single point of contact is vital. This person navigates homeowners through complex processes. They track application status. They ensure transparency. Restrictions on "dual tracking" are also key. This prevents foreclosure during loan modification reviews. It offers homeowners a fair chance. Tenant rights in foreclosed homes are also protected. They get extended notice periods.
Separately, AG Bonta celebrated another legal victory. A federal court struck down a discriminatory policy. The Trump Administration had imposed an unlawful $100,000 tax. This tax targeted new H-1B visa petitions. This policy was deemed illegal.
H-1B visas are crucial. They allow U.S. employers to hire skilled foreign nationals. These workers fill specialized roles. They serve as teachers, physicians, researchers, and nurses. They alleviate nationwide labor shortages. They support essential services.
The $100,000 tax created a costly barrier. It weakened the economy. It disrupted vital services. Public sector and government employers suffered. They struggled to fill critical positions. This included roles in healthcare and education.
Attorney General Bonta led a multistate coalition. They challenged the policy. The U.S. District Court for the District of Massachusetts issued the final ruling. The court found the tax unlawful. It vacated the policy. This victory protects employers. It strengthens America’s ability to attract talent.
The H-1B program benefits the United States. It fills critical labor needs. It ensures worker protections. Congress carefully structured the program. It prevents misuse. It enhances enforcement. It sets appropriate fees.
H-1B workers contribute significantly. They and their dependents add $86 billion annually to the economy. They pay billions in federal, payroll, state, and local taxes. The unlawful tax undermined these benefits. It made addressing severe labor shortages harder.
The Trump Administration’s proclamation in 2025 ordered the tax. It was unprecedented. It directly counteracted the H-1B program’s purpose. It affected applications filed after September 21, 2025. It granted broad discretion. Concerns arose over selective enforcement.
California remains open for business. It welcomes talent. It commits to essential services. These services rely on a strong, skilled workforce. The court's decision supports this vision. It removes an unnecessary economic burden.
These legal actions highlight a broader mission. Attorney General Bonta's office safeguards California residents. They protect consumers from predatory practices. They ensure economic fairness. They defend against overreaching federal policies. The focus remains clear: justice for all Californians. These victories underscore consistent efforts. They reinforce legal protections. They secure the state's future.
California's top legal officer delivers. Attorney General Rob Bonta actively champions resident protection. His office recently secured two pivotal legal victories. These actions affirm California’s commitment to fairness. They safeguard economic stability. These decisions impact thousands.
One significant win involves mortgage servicing. AG Bonta announced a $4.6 million settlement. This agreement targets Select Portfolio Servicing (SPS). SPS is a major sub-prime mortgage servicer. The company faced allegations of violating state and federal laws. These violations occurred during the COVID-19 pandemic.
The pandemic created immense financial strain. Many Californians struggled with mortgage payments. State laws protect these homeowners. California's Homeowner Bill of Rights (HBOR) offers crucial safeguards. SPS allegedly disregarded these protections.
Investigations revealed several failures. SPS did not adequately inform homeowners. They failed to explain COVID-19 forbearance plans. Forbearance exit options remained unclear. Homeowners lacked information on other loss mitigation alternatives. Mortgage statements incorrectly stated late fees. This caused undue stress.
Tailored discussions were absent. Homeowners nearing forbearance end received inadequate support. SPS failed its obligation for single points of contact. This contact person should guide homeowners. They must understand applications. They must know deadlines. They need updates. SPS fell short.
Loan modification applications faced hurdles. SPS did not ensure proper submission timelines. Homeowners suffered from these lapses. The Attorney General’s investigation confirmed these issues. The settlement addresses these harms directly.
The $4.6 million settlement has two parts. SPS must pay $1.6 million in civil penalties. An additional $3 million goes to consumer relief. Thousands of impacted homeowners will receive payments. They need not apply. They are already identified. Payments will be automatic.
Beyond financial relief, changes are mandated. SPS must implement new procedures. These ensure proper support. Homeowners must receive accurate information. Loan modification processes will improve. Foreclosure prevention options become clearer. This strengthens the HBOR. It protects future homeowners.
The HBOR itself is a robust framework. It mandates notification of foreclosure-prevention options. Servicers must contact homeowners before foreclosure. They must discuss financial situations. They must explore alternatives. Applications for loan modifications require prompt acknowledgment. Servicers must identify missing information quickly.
A guaranteed single point of contact is vital. This person navigates homeowners through complex processes. They track application status. They ensure transparency. Restrictions on "dual tracking" are also key. This prevents foreclosure during loan modification reviews. It offers homeowners a fair chance. Tenant rights in foreclosed homes are also protected. They get extended notice periods.
Separately, AG Bonta celebrated another legal victory. A federal court struck down a discriminatory policy. The Trump Administration had imposed an unlawful $100,000 tax. This tax targeted new H-1B visa petitions. This policy was deemed illegal.
H-1B visas are crucial. They allow U.S. employers to hire skilled foreign nationals. These workers fill specialized roles. They serve as teachers, physicians, researchers, and nurses. They alleviate nationwide labor shortages. They support essential services.
The $100,000 tax created a costly barrier. It weakened the economy. It disrupted vital services. Public sector and government employers suffered. They struggled to fill critical positions. This included roles in healthcare and education.
Attorney General Bonta led a multistate coalition. They challenged the policy. The U.S. District Court for the District of Massachusetts issued the final ruling. The court found the tax unlawful. It vacated the policy. This victory protects employers. It strengthens America’s ability to attract talent.
The H-1B program benefits the United States. It fills critical labor needs. It ensures worker protections. Congress carefully structured the program. It prevents misuse. It enhances enforcement. It sets appropriate fees.
H-1B workers contribute significantly. They and their dependents add $86 billion annually to the economy. They pay billions in federal, payroll, state, and local taxes. The unlawful tax undermined these benefits. It made addressing severe labor shortages harder.
The Trump Administration’s proclamation in 2025 ordered the tax. It was unprecedented. It directly counteracted the H-1B program’s purpose. It affected applications filed after September 21, 2025. It granted broad discretion. Concerns arose over selective enforcement.
California remains open for business. It welcomes talent. It commits to essential services. These services rely on a strong, skilled workforce. The court's decision supports this vision. It removes an unnecessary economic burden.
These legal actions highlight a broader mission. Attorney General Bonta's office safeguards California residents. They protect consumers from predatory practices. They ensure economic fairness. They defend against overreaching federal policies. The focus remains clear: justice for all Californians. These victories underscore consistent efforts. They reinforce legal protections. They secure the state's future.