Governor Extends Escrow Agent Rating Service Protections

As a result of the efforts of the California Escrow Association, the Legislature passed Civil Code ยงย 1785.28 in 2013, which applied the protections in the Consumer Credit Reporting Agencies Act to escrow agents who were being asked to submit to vetting by independent companies. The law had a rather short life built into it, however, with a sunset provision which ended its effect on January 1, 2017.

As the joint support of the CEA and the Escrow Institute of California, however, on August 17, 2016, the Governor signed AB 2416 extending the sunset provision another five years to January 1, 2022. While the prior sunset provision allowed for the extension of the law, the new act seems a bit more firm in stating that it will be repealed on January 1, 2022. That should not be taken as absolute, however, as the Legislature may repeal the repealing language before that time or amend it again. For now, however, the protections for escrow agents that the law provides will remain in effect another five years.