California Governor Arnold Schwarzenegger passed new laws that were designed to protect homeowners. Among the laws approved, there is one that restricts mortgage brokers from talking perspective homeowners into riskier, and high interest loans when the borrower qualifies for more an all-around better loan.

According to the Los Angeles Times here are some of the other laws the Governor signed:
SB 36,  by Sen. Ron Calderon (D-Montebello), sets standardized licensing requirements for all residential loan originators.

SB 239, by Sen. Fran Pavley (D-Agoura Hills), makes it a felony to commit fraud on a mortgage loan application.

AB 329, by Assemblyman Mike Feuer (D-Los Angeles), requires lenders to provide more, clear information to senior consumers interested in reverse mortgages.

SB 237, by Calderon, creates a registration program for appraisal management companies.

AB 957, by Assemblywoman Cathleen Galgiani (D-Stockton), allows buyers of foreclosed homes to choose local escrow officers.

AB 1160, by Assemblyman Paul Fong (D-Cupertino), requires that mortgage loan documents be translated into the language the verbal negotiations were conducted in.

Over a half a million homeowners have had their mortgages modified under the plan President Barack Obama began earlier this year. Treasury Secretary, Timothy Geithner said, “Unaffordable mortgages are now being modified at a pace faster than homes are being sold in foreclosure proceedings.” He also went on to say that 40% of the 1.2 million homeowners deemed eligible for loan modifications under the Obama plan have received them.

This is still a taxing process for many homeowners who still find themselves nearing foreclosure. So, although the administration celebrates this milestone they are still very aware that there’s much more to be done.