California's Homeowners Bill of Rights will add an estimated $30,000 of legal exposure into each and every non-judicial foreclosure, according to a white paper released by Robert J. Jackson and Associates.

Intended to educate loan servicing professionals and the financial institutions that hire them, the white paper states that the new law will change long-standing legal doctrines in the state.

The new law will also make compliance with its provisions nothing more than a very expensive defense to borrower claims of wrongful foreclosure, the white paper stated, while encouraging such claims through its private right of action.

"The industry’s focus on procedurally complying with the Homeowners Bill of Rights is misplaced," said Scott Jackson, executive vice president of the firm.

The white paper concludes that the Homeowners Bill of Rights "effectively kills" the non-judicial foreclosure process it originally intended to reform. The paper states that the new law makes judicial foreclosures a cost-effective and time-efficient alternative.

"The new law strips away protective legal doctrines that an entire generation of servicing professionals have come to rely on, making it much more difficult and significantly more expensive to resolve claims brought under the new law," Jackson said.