10 for ’10: New Real Estate Laws for the New Year

Posted by | January 28, 2010 | News | No Comments
10 for 10:New Real Estate Laws for the New Year

l. SB 36 – MORTGAGE LOAN ORIGINATORS REGULATED

(Effective 12/09)

Requires a real estate license endorsement from the commissioner in order to engage in the business of a mortgage loan originator, as defined. If a real estate licensee falls to obtain a license endorsement before conducting business as a mortgage loan originator, the commissioner is authorized to suspend or revoke a real estate license for a failure to pay these penalties.

2. SB 94- NO ADVANCE FEE LOAN MODIFICATIONS

(Effective 10/11/09)

Prohibits anyone from claiming my compensation for negotiating or arranging ti loan modification until alter that person fully performs each and every service as promised. Aimed at combating loan modification scams.  This ban applies to upfront fees collected by real estate agents and attorneys. Expires on January 1, 2013.

3. SB 237 – APPRAISAL INDUSTRY OVERSIGHT

(Effective  1/1/10)

Requires appraisal management companies to register with the Office of Real Estate Appraisers, and subjects those entities to the provisions of the Real Estate Appraisers‘ Licensing and Certification Law. The bill also requires the office to adopt regulations governing the implementation of the registration process. with specified minimum requirements, and establish the tees to be imposed for registration in an amount sufficient to cover the costs incurred by the office in administering the registration.

4. SB 239 -MORTGAGE FRAUD BECOMES STATE CRIME

(Effective 1/1/2010)

Makes it a felony to commit fraud on a mortgage loan application. Mortgage fraud may only be prosecuted when the value of the alleged fraud meets the threshold for grand theft, as specified. A violation of this law is a crime punishable by one·year imprisonment.

5. SB 290 – 60-DAY NOTICE TO TERMINATE TENANTS EXTENDED

(Effective 1/1/10)

The existing law requiring a 60-day notice to terminate a month to month tenant has been extended indefinitely. This requirement does not apply to fixed-term leases. A 30-day notice to terminate is sufficient when the tenant of a property has only resided there for less than a year.

6. AB 260 – MORTGAGE BROKER ACTIVITIES RESTRICTED

(Effective 1/1/10)

Bans negative-amortization loans and limits mortgage prepayment penalties to no more than 2% of the loan balance. The bill also prohibits a mortgage broker, as defined, who arranges higher-priced mortgage loans with prepayment penalties from receiving a compensation that exceeds certain amounts.

7. AB 329 – CLEAR GUIDELINES FOR REVERSE MORTGAGE

(Effective 1/1/10)

Requires lenders to give clear information to those interested in reverse mortgages, which let seniors borrow against their homes’ equity. Lenders are also required to provide the prospective borrower with a list of not fewer than 10 nonprofit counseling agencies in the state that have been approved by the United States Department of Housing and Urban Development for counseling, as provided.

8. AB 957 – BUYER’S ACT

( Effective 10/11/09)

Mandates that buyers of foreclosed homes would have the choice of using a local escrow office to handle the transaction. lt also prohibits et seller of residential property from requiring the buyer to use an escrow service company or purchase title insurance chosen bythe seller and would also prohibit a seller of residential property from. without good cause. disapproving the use of at title or escrow company chosen by the buyer.

9. AB 1046 – INCREASE IN HOMESTEAD EXEMPTIONS

(Effective 1/1/10)

Protects homeowner equity from creditors by increasing $25,000 across the board: $75,000 for individuals, $100,000 for married couples or family units as specified, and $175,000 for persons over 65 years, disabled, or over 55 years with limited income as specified.

10. AB 1160 – LOAN DOCUMENT TRANSLATION

(Effective 1/1/10)

Requires that mortgage loan documents bc written in the same language the verbal negotiations were conducted in. Translation requirements applicable to loans or extensions of credit secured by real property and leases, sublcases. and rental contracts or agreements, as specified. The bill also authorizes civil penalties against any person who fails to deliver the translation. to be imposed by a court in an action commenced within 3 years of the transaction.

For complete details and history of the new laws mentioned above,
visit http://www.leginfo.ca.gov/ and http://info.sen.ca.gov/

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