LEGISLATION

AB 69 (Lieu) - Debt management and settlement: credit counselors:  This requires mortgage lenders to report to their respective regulatory agency information regarding loan loss mitigation efforts.

Status: Chaptered by Secretary of State, Chapter 277, Statutes of 2008

AB 180 (Bass and Lieu) - Mortgages: foreclosure consultants:  This bill amends existing law relative to foreclosure consultants.  AB 180 prohibits a foreclosure consultant from entering specified pre-foreclosure agreements with a homeowner, allows a homeowner to cancel within five days of signing a contract with a foreclosure consultant, and requires the foreclosure consultant to maintain a surety bond.  Also has a translation provision to allow owners to request a completed copy of the contract if any language described in Civil Code Section 1632 (Spanish, Chinese, Tagalog, Vietnamese, and Korean).  The surety bond requirement requires a single $100,000 surety bond in favor of the State of California for the benefit of homeowners damaged by the foreclosure consultant's violation, and allows the Department of Justice to refuse to issue or revoke a certification of registration for violations of the chapter on Mortgage Foreclosure Consultants.

Status: Chaptered by Secretary of State, Chapter 278, Statutes of 2008

AB 529 (Torrico)  - Mortgages: adjustable interest rates: notification:  This bill requires a borrower to receive notice if their loan is scheduled to switch from an initial fixed rate to an adjustable rate, or set to reset to a fully amortizing loan.  This notification must occur between 90 and 120 days before the loan is scheduled to switch or reset.   The notice must include the current payment, the month and year the loan will change, an example of the potentially monthly payment after reset, and a number the borrower may contact for more information about the terms of the loan.

Status: Vetoed by the Governor

AB 941 (Torrico)  - Real property loans: documents:  This bill requires the Department of Real Estate to review the real property transaction disclosure process, and to post a draft report on its Internet Web site by July 1, 2008.  The Department would be required to consult with other departments as necessary, and submit a final report to the Legislature by January 1, 2009.

Status: Vetoed by the Governor

AB 1538 (Lieu)  - Housing Trust Fund: home loan refinance assistance:  This bill establishes a home loan refinance assistance program to be administered by the California Housing Finance Agency (CHFA) to assist borrowers who may face foreclosure. 

Status: Died in Assembly Appropriations Committee

AB 1830 (Lieu, Bass, Nava, Wolk) - 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. 

Status: Vetoed by the Governor

AB 2161 (Swanson) - Loans: consumer complaints:  This bill requires the Department of Real Estate, the Department of Financial Institutions, and the Department of Corporations to report to the Legislature on consumer complaints related to nontraditional loans.

Status: Held in Senate Appropriation Committee

AB 2187 (Caballero)  - Mortgages: foreclosure:  This bill imposes certain requirements on mortgage lenders that are foreclosing on property.  AB 2187 requires a lender foreclosing on real estate property to include with the notice of default a foreclosure statement of rights, which specifies the process of foreclosure and sets forth the rights of the borrower regarding contracts with mortgage foreclosure consultants.  Also, requires that the foreclosure notice be provided in the language of the borrower.  Provides, until January 1, 2013, a mortgage lender or other person acquiring a property through the foreclosure process maintain the exterior of vacant residential property.  This bill authorizes governmental entities to levy fines of up to $1,000 per day for violations. However, it requires the governmental entity to provide the owner with notice of the claimed violation and an opportunity to correct the violation within 30 days prior to levying the fine.

Status: Died in Assembly Appropriation Committee

AB 2359 (Jones)  - Loans:  This bill provides that an originator, beneficiary, trustee or assignee shall not require as a condition of an agreement regarding a covered loan, subprime loan, or non-traditional loan that the applicant waive any duties, remedies, or forums of California law with respect to a residential mortgage or mortgage foreclosure.  

Status: Died in Senate Banking, Finance & Insurance Committee

AB 2509 (Galgiani) - Housing finance: mortgage guarantee program:  This bill requires the California Housing Finance Agency (CalHFA) to establish the Homeownership Preservation Mortgage Guarantee Program (Program). 

Status: Died in Senate Banking, Finance & Insurance Committee

AB 2740 (Brownley)  - Home loans: servicing:  This bill establishes various prohibited acts and requirements applicable to the servicing of home loans.  AB 2740 regulates how and when a fee may be imposed by a home loan servicer, requires a servicer to respond within specified periods to a borrower's request for information, documents, and dispute resolution and to promptly correct errors, authorizes the recovery of damages by a borrower or other party who is injured by a servicer's violation, and authorizes the Commissioner of Financial Institutions, the Commissioner of Corporations, and the Attorney General to bring an action to recover damages. 

Status: Died in Senate Banking, Finance & Insurance Committee

AB 2880 (Wolk)  - Mortgage lending:  This bill specifies that mortgage brokers have a fiduciary responsibility to borrowers and requires mortgage brokers to maintain a surety bond. 

Status: Held in Assembly Appropriation Committee

AJR 45 (Coto)  - Mortgage loans: federal conforming and FHA mortgage loan limits:  This resolution memorializes the Congress of the Untied States to enact, and the President of the United States to sign, a permanent increase in the conforming mortgage loan limit and the Federal Housing Administration limit, to the levels to which these limits were increased in the Economic Stimulus Act of 2008.

Status: Chaptered by Secretary of State, Resolution Chapter 81, Statues of 2008

AJR 59 (Solorio)  - California subprime mortgage foreclosures:  This resolution urges the President of the United States and Congress to require more oversight of mortgage lenders and loan servicers and increase disclosures and enforcement of mortgage laws.  Asks Congress, the Board of Governors of the Federal Reserve System, the Office of the Comptroller of Currency, the Office of Thrift Supervision, and the Federal Deposit Insurance Corporation to recognize the important role of states in the regulation of mortgage lending and in providing customer protections.

Status: Held in Assembly Banking & Finance Committee

SB 385 (Machado)  - Real estate: mortgages: real estate brokers:  This bill applies federal guidance relating nontraditional mortgage products to state-regulated mortgage lenders and brokers. 

Status: Chaptered by Secretary of State, Chapter 301, Statutes of 2007

SB 1053 (Machado)  - Real estate: brokers and salespersons:  This bill requires real estate brokers that make, arrange, or service residential mortgage loans to notify the Department of Real Estate of their business activity, and requires brokers to file certain reports and statements with DRE. 

Status: Held in Assembly Banking & Finance Committee

SB 1054 (Machado) - Real estate: brokers and salespersons:  This bill allows the Department of Real Estate to prohibit, bar or suspend a real estate salesperson or broker from participating in any business activity relating to real estate for up to 36 months.

Status: Failed Passage in Assembly Banking & Finance Committee

SB 1065 (Correa)  - Home financing programs:  This bill allows cities and counties to use revenue bond funds to make or purchase refinanced home mortgages that are federally insured, federally guaranteed, or eligible to be purchased by the Federal National Mortgage Association or the Federal Home Loan and Mortgage Corporation.

Status: Chaptered by Secretary of State, Chapter 283, Statutes of 2008

SB 1137 (Perata)  - Residential mortgage loans: foreclosure procedures:  This bill enacts changes related the foreclosure process in response to the subprime lending/foreclosure crisis.  Requires face-to-face contact with a borrower at least 30 days before the filing of a notice of default.  Gives tenants of foreclosure property additional time to vacate the property after it has been sold at a foreclosure auction.

Status: Chaptered by Secretary of State, Chapter 69, Statues of 2008

SB 1448 (Scott)  - Real estate brokers and salespersons: fines:  This bill increases the maximum fine for an unlicensed person acting or advertising themselves as a real estate broker or a real estate salesperson from $10,000 to $20,000 and for an unlicensed corporation from $50,000 to $60,000, and requires any fine collected in excess of $10,000 from an individual or in excess of $50,000 from a corporation be deposited into the Real Estate Fraud Prosecution Trust fund if one exists in the county where the conviction occurs.

Status: Chaptered by Secretary of State, Chapter 156, Statues of 2008

SJR 21 (Machado)  - Mortgage loans: conforming loan limit:  This measure would respectfully memorialize the President and Congress of the United States to enact legislation that would increase the federal conforming loan limit. 

Status: Held in Assembly Banking & Finance Committee

2009 Legislation Page