In September, the United Trustees Association, the California Mortgage Association, and the California Credit Union League, and several impacted individuals, financial institutions and small business owners sued Rob Bonta, as California Attorney General, to block enforcement of portions of Assembly Bill 130 impacting collection of junior liens that threaten to diminish credit options for homeowners and restrict access to capital for small business and homeowners, at a time when home ownership in California is declining and affordability is at all-time lows. The lawsuit argues that AB 130 unconstitutionally impairs existing contracts, deprives lenders and investors of property rights, violates due process and equal protection, and is preempted by federal law.

As an update, a First Amended Complaint was filed on November 13, 2025.  A Motion for Preliminary Injunction seeking to enjoin enforcement of the offending sections of Civil Code section 2924.13 should be filed next week, after obtaining supporting declarations from interested parties. Civil motions in the Eastern District require 35 days’ notice so it’s probable that a ruling would not be made prior to late December.