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1/20/2010 - CA DRE - New GFE Form Requirement Mortgage
brokers originating federally related mortgage loans must now provide 2
separate disclosure forms: CA Mortgage Loan Disclosure Statement, RE 882
(or RE 885 for non-traditional loans) and the new Good Faith Estimate
required by HUD. The CA Department of Real Estate has requested approval
from HUD, for new combined disclosures.
October 11, 2009 - New Mortgage Laws
S.B. 36 joining NMLS - licensees must beet SAFE Act - DRE
Mortgage Endorsement.
A.B. 260, prohibits 1.) "steering" borrowers into
higher-priced loans that are more risky than lower-interest, fixed-rate
loans if the borrower qualified, 2.) bans negative
amortization loans, and 3.) establishes strict caps on prepayment
penalties. Imposes a fiduciary duty for all mortgage brokers and banks
acting as mortgage brokers, and prohibits lenders and brokers from
making false or misleading statements relative to the terms of a
subprime loan.
A.B. 329 requires reverse mortgage lenders to provide additional
information to seniors interested in reverse mortgage products.
1.) Provide (i) a list of at least ten HUD-approved reverse mortgage
counseling agencies, (iii) a written checklist of issues to discuss with
the reverse mortgage counselor.
A.B. 957 prohibits the seller of foreclosed residential real
property from conditioning the sale of such property on a buyer's
purchase of title insurance from a particular insurer or title company
and/or escrow services from a particular provider. The bill took
immediate effect, and remains in effect until January 15, 2015.
A.B. 1160 provides that a lender that negotiates a mortgage loan
primarily in Spanish, Chinese, Tagalog, Vietnamese, or Korean is
required to deliver to the borrower a specified form in that same
language. The form, to be created by the Department of Corporations and
the Department of Financial Institutions, will provide a summary of the
terms of the loan contract or agreement. A.B. 1160 becomes effective
July 1, 2010, or 90 days after the Department of Corporations and the
Department of Financial Institutions create the specified form,
whichever is later.
S.B. 237 requires appraisal management companies to register with the
California Office of Real Estate Appraisers, and provides that an
appraisal management company is prohibited from improperly influencing
or attempting to improperly influence an appraisal.
S.B. 239 makes it a felony to commit fraud in connection with a mortgage
loan application, where the value of the fraud meets the threshold for
grand theft under California law (currently, $400).
3/9/2009 - Department of Corporations -
Mortgage
servicers report 18,410 loan mods in 12/08
2/20/2009 - California Enacts Law Aimed
at Preventing Foreclosures. California Foreclosure Prevention Act
extends the interim period between notice of default and filing notice
of sale from 3 to 6 months if a) must be 1st lien residential loan
from 1/1/03-1/1/08; b) owner-occupied at time of default.
10/28/08 - Only CRMLA
Licensees can Table Fund - California Residential Mortgage Lending
Act Licensees may Table Fund. The CRMLA authorizes licensee to engage in
"table funding," whereby the loan is funded by another institutional
lender but closed in the name of the licensee. [CA Fin Code
s50700(b)(2)]. It is interesting that it will only allow the
licensee to be named as the lender if the funding entity is another RMLA
licensee, HUD, VA (or other government entity) or an institutional bank.
DRE Mortgage Brokers are not allowed on 1 to 4 family dwellings.
(Business & Professions Code Section 10234).
10/20/08 - California
Department of Corporations issued notice reminding lenders of the
requirement for a mortgagee to contact or attempt to contact borrowers,
in person or by phone, at least 30 days prior to issuing a default
notice.
12/18/07 - Orange County News
Brokers Advertising Must Disclose ALL terms of Option ARMs - A
little-noticed regulation that took effect last September requires
brokers who advertise adjustable rate, interest-only or payment-option
loans to make a slew of new disclosures if they specify a monthly
payment amount in the ad. California Department of Real Estate
Regulation 2848(a)(17) prohibits: A representation of an installment in
repayment of an adjustable rate, interest only or payment-option loan
without an equally prominent disclosure of the all salient information
about the loan.
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