An Express Article from the California Land Title Association
As expected, members of the California Legislature introduced bills in response to the mortgage crisis in California. The authors of the legislation include Senator Machado, Chairman of the Senate Banking, Finance and Insurance Committee, Senator Perata, the President pro Tem of the Senate and Assembly member Lieu, Chairman of the Assembly Banking and Finance Committee. For a complete text of the each bill please click on the link provided.
AB 69 (Lieu): Requires detailed reporting by financial institutions to state regulators of concerning loans originated and serviced.
AB 529 (Torrico): Establishes notification requirements to borrowers before interest rate adjustments.
SB 926 (Perata): Establishes notification requirements to borrowers before interest rate adjustments. Requires meeting with borrowers before filing a notice of default and addresses the offering of alternatives to borrowers.
SB 1053 (Machado): Permits the examination of real estate licensees involved in making or arranging loans at any time and without notice by regulators.
SB 1054 (Machado): Addresses disciplinary action against real estate licensees and restrictions on activities after rendering an opinion of value to a lienholder.
SB 1055 (Machado): Conforms California tax law on the cancellation of indebtedness to recent changes in federal law.
Late last year Governor Schwarzenegger announced a voluntary agreement negotiated with lenders to streamline “fast-track” procedures to help keep subprime borrowers in their homes. The agreement, announced by the Governor on November 20th, seeks to enable subprime borrowers to keep their loans at lower rates and avoid interest rate re-sets scheduled to occur.