- Governor Schwarzenegger Signs Mortgage Protection Legislation
- Foreclosure-mediation laws not much help
- Foreclosure Mediation Programs Aren’t Working Because of Net Present Value (NPV) Calculations
- US home foreclosure mediation in jeopardy - report
- State Foreclosure Prevention Ineffective, Study Shows (Update2)
- Report Finds US Foreclosure-Mediation Programs Falter
- More Loan Mod Problems Reported
- Report: BOA Among Worst For Loan Mods
- New head of State Bar of California assails mortgage modification scammers
- Why the foreclosure crisis isn’t improving
- more...
AB 34 (Nava) SAFE Act.
Requires all mortgage loan originators to be individually licensed. Additionally, requires all loan originators to register with a national database and submit criminal history background checks. This bill will provide enhanced consumer protections by ensuring that all loan originators follow the same licensing standards and requirements. Registration with a national database will also ensure that loan originators who commit fraud in another state are not able to become licensed in California.
Finally, this bill will also include advertising provisions that will require mortgage advertisements to be pre-approved by the regulator prior to usage.
AB 33 (Nava) Regulatory Consolidation
Combines the Department of Financial Institutions, Department of Corporations and Department of Real Estate into the California Department of Financial Services. Currently three agencies regulated banking activity in the state. These three agencies are also responsible for the regulation of various entities involved in mortgage lending. This tripartite system of regulation leads to consumer confusion and dilutes regulatory authority and power.
AB 764 (Nava) Homeowner Fraud Prevention Act
Prohibits anyone from charging a fee for modifying a loan unless the person is a licensed real estate broker. Provides conformity with SB 1448 by increasing the fines from $10,000 to $20,000 and $50,000 to $60,000. Also, requires the Department of Real Estate to look at all advertising materials related to advance fee agreements and requires all real estate brokers to use the advance fee agreement form set forth by the department.
AB 260 (Lieu, Bass, and Nava)– Subprime Lending.
This bill enacts duties, requirements and prohibitions relating to higher priced mortgage loans. Establishes consumer protections for borrowers who receive subprime mortgage loans and requires that mortgage brokers act as fiduciaries of borrowers.
AB 1160 (Fong) – Mortgage Contracts: translation
Provides that if a mortgage loan is negotiated in language other than English, then a translated summary of the key terms of the loan must be provided to the borrower in the language that the loan was negotiated in prior to execution of the mortgage loan contract.