Governor signs several mortgage bills aiming to protect homeowners, homebuyers

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THIS STORY HAS BEEN CORRECTED REGARDING SB 1675.

 

On Thursday Gov. Arnold Schwarzenegger has signed legislation aimed at protecting homeowners and homebuyers in California and helping establish a safe, more accountable lending environment.


The legislation aims to increase accountability in the real estate market, improve transparency standards in order to prevent abusive lending practices and help Californians maintain homeownership in the aftermath of the foreclosure crisis.


"All Californians deserve the opportunity to achieve the American dream of homeownership and this legislation will help homebuyers realize that dream in the aftermath of the housing crisis," Schwarzenegger said in a written statement. "I am pleased to sign legislation that protects consumers and creates a responsible and accountable lending environment that will encourage homeownership in our state."


SB 1461 by Sen. Gloria Negrete McLeod (D-Montclair) requires real estate agents to disclose their license number on all first point of contact marketing materials and property purchases beginning July 1, 2009 and SB 1737 by Sen. Michael Machado authorizes the Department of Real Estate to suspend or bar a person who has committed a violation of the Real Estate Law if the suspension or bar is in the best interest of the public.


The governor also signed AB 69 by Assemblymember Ted Lieu (D-Torrance) mandating that all mortgage loan servicers report specific, detailed data to their licensing agency concerning loan modifications and AB 180 by Assembly Speaker Karen Bass (D-Los Angeles) provides a registration and bonding process for foreclosure consultants and prohibits a foreclosure consultant from entering into an agreement to assist an owner in arranging the release of surplus funds after the trustee's sale is conducted.


To help Californians refinancing their mortgages in the aftermath of the foreclosure crisis the governor signed SB 870 by Sen. Mark Ridley-Thomas (D-Los Angeles) which allows the California Housing Finance Agency to more quickly establish a mortgage refinance program and SB 1065 by Sen. Lou Correa (D-Santa Ana) that includes the refinancing of home mortgages in the criteria for a city or county-administered home financing program.


The following four housing-related bills have also been signed into law:



In July 2008, Schwarzenegger signed legislation giving Californians one more tool to help them stay in their homes. SB 1137 by Senate President Pro Tem Don Perata (D-Oakland) and co-authored by Wiggins, requires lenders to contact homeowners and explore restructuring options before initiating the foreclosure process. The governor also previously signed SB 1448 by Sen. Jack Scott (D-Pasadena) increasing penalties for acting or advertising as a real estate broker or salesperson without a license.


Additionally last year, the governor signed the following legislation to help homeowners preserve their homeownership, increase protections for Californians who plan to purchase homes and expand affordable housing opportunities:



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