This week Governor Schwarzenegger signed several pieces of legislation into law that will affect real estate transactions in the state of California - all for the better!
- SB 36, by Senator Ron Calderon (D-Montebello), creates licensing requirements for all residential loan originators.
- SB 237, by Senator Ron Calderon (D-Montebello), creates a registration program for appraisal management firms.
- SB 239, by Sen. Fran Pavley (D-Agoura Hills), makes it a felony to commit fraud on a mortgage loan application.
- AB 260, by Assemblyman Ted Lieu (D-Torrance), bans negative-amortization loans and limits mortgage prepayment penalties to no more than 2% of the loan balance.
- AB 329, by Assemblyman Mike Feuer (D-Los Angeles), requires lenders to give more and clearer information to those interested in reverse mortgages, which let seniors borrow against their homes' equity.
- AB 957, by Assemblywoman Cathleen Galgiani (D-Stockton), allows buyers of foreclosed homes to choose local escrow officers, rather than being forced to use the escrow company chosen by the bank seller.
- AB 1160, by Assemblyman Paul Fong (D-Cupertino), requires that mortgage loan documents be written in the same language the verbal negotiations were conducted in.