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.

This entry was posted on Thursday, October 15th, 2009 at 6:13 pm and is filed under Foreclosure. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.