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SB 946

Consumer Credit Reporting Agencies Act: escrow agent rating services and escrow agents.

2025-2026 Regular Session Introduced by Kelly Seyarto

SB 946 would regulate escrow agent rating services, boosting oversight and standardization to improve accuracy and transparency in escrow agent evaluations.

From committee: Do pass. (Ayes 8. Noes 0.) (June 22).
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Bill Summary · SB 946

Summary of SB 946 (2025-2026) – Consumer Credit Reporting Agencies Act: escrow agent rating services and escrow agents

Purpose and intent

  • SB 946 amends the California Consumer Credit Reporting Agencies Act to address escrow agent rating services and escrow agents.
  • The bill appears aimed at regulating how escrow agents are rated or evaluated and integrates these activities within the framework of consumer credit reporting and associated oversight.

Key provisions and changes (as introduced and advanced through the process)

  • While the exact text of provisions is not provided here, the bill’s title and legislative path indicate focus on:
    • Establishing or clarifying requirements for rating services that evaluate escrow agents.
    • Extending or adjusting responsibilities, disclosures, or consumer protections related to escrow agents that are part of or reported to credit reporting or consumer reporting systems.
  • Potential areas likely covered by similar reforms include:
    • Definitions of “escrow agent” and “escrow agent rating service.”
    • Standards for accuracy, fairness, and non-discrimination in rating methodologies.
    • Consumer notification and dispute resolution processes related to escrow agent ratings.
    • Recordkeeping, reporting, and oversight provisions for rating services.
    • Licensure, registration, or compliance obligations for escrow agents or rating services.
  • The exact monetary or procedural specifics (fees, penalties, timelines) are not provided in the summary available.

Who and what would be affected

  • Stakeholders likely affected include:
    • Escrow agents operating in California and subject to rating or evaluation by rating services.
    • Consumers or counterparties relying on escrow services who may be impacted by how escrow agents are rated.
    • Entities that operate or regulate consumer credit reporting, including agencies that compile or report data on escrow agents.
    • Rating services that analyze and publish escrow agent performance or reliability metrics.
  • The bill may introduce new compliance requirements for escrow agents and rating services, as well as new consumer protections related to ratings.

Procedural and timeline aspects

  • Introduced in February 2026 and assigned to committees including Business and Financial Institutions (B. & F.), and later to Appropriations (APPR) for suspense and consent considerations.
  • Reported out of committee with a “Do pass” recommendation on June 23, 2026 (Ayes 8–0).
  • Subsequently advanced through the legislative process in May–June 2026, including:
    • Passed the Senate floor (as indicated by “Read third time. Passed.” on May 22, 2026) and ordered to the Assembly.
    • Passed in the Assembly in June 2026 and moved back to the Senate for concurrence or final actions, with committee approvals continuing.
  • Co-sponsor: Kelly Seyarto.
  • The bill’s progress suggests it is moving toward final enactment, subject to any differences between the houses and potential signatures.

Practical considerations and potential impact

  • If enacted, the bill would likely increase oversight and standardization for escrow agent ratings, aiming to improve accuracy and transparency in how escrow agents are evaluated.
  • Consumers and businesses using escrow services could gain clearer information about escrow agent performance via rating services, potentially influencing selection and contract terms.
  • Escrow agents and rating services would face new or clarified regulatory requirements, including recordkeeping, reporting, and dispute resolution procedures.

Note: For precise provisions, definitions, and operative sections (e.g., exact amendments to the California Civil Code or related statutes), the bill’s text as enacted or amended should be consulted.

Compiled from official sources — confirm details with the bill’s official record.

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