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A brief overview of a few of the new laws follows:
Buyer’s Choice Act (Assembly Bill 957) – Effective October 11, 2009 through January 1, 2015: Allows California homebuyers to make their own choices regarding escrow or title companies. A lender may make a recommendation but cannot force the homebuyer to use their preferred companies.
No Advance Fee Loan Modifications (Senate Bill 94) – Effective October 11, 2009 through January 1, 2013: Loan modification companies/lawyers/real estate professionals/individuals can no longer get upfront fees for negotiating or arranging loan modifications. It also requires that the homeowner be notified that paying a third-party for these service in unnecessary. It does not impact advance fees collected before October 11, 2009.
Mortgage Loan Originators Regulation (Senate Bill 36) - Commencing December 2010: Mortgage Loan Originators must now take a written test to obtain a license endorsement. Finance lenders and residential mortgage lenders under the Department of Corporation must also register in the nationwide system.
Mortgage Broker Activities Restricted (Assembly Bill 260) - January 1, 2010: Mortgage brokers will be considered to have a fiduciary duty to hold the borrower's financial interest ahead of their own. It requires upfront disclosures, restricts prepayment penalties and yield spread premiums, disallows negative amortization, and prohibits mortgage brokers from steering borrowers to higher-cost loans.
Appraisal Industry Oversight (Senate Bill 237) – January 1, 2010: The Office of Real Estate Appraisers (OREA) will have regulatory oversight of appraisal management companies and must put in place a registration system for appraisal management companies, which includes fingerprinting and background checks. It also prohibits unsavory business practices such as the withholding or threatening to withhold an appraisal fee, withholding or threatening to withhold future appraisal business, and promising future business, promotions, or compensation.
California Mortgage Fraud (Senate Bill 239) - As of January 1, 2010: Under California law, anyone who deliberately makes any misrepresentation or omission during the mortgage lending process with the intent of influencing that process will be guilty of mortgage fraud.
Homestead Exemptions Increased (Assembly Bill 1046) - Effective January 1, 2010: California Homeowner’s equity protected from creditors is now $75,000 for individuals and $100,000 for married couples and $175,000 for seniors (over 65), disabled or over 55 with limited income.
60-Day Notice to Terminate Tenants (Senate Bill 290) - Extended indefinitely: Landlords must give tenants 60-day notice to terminate if the tenant has been there longer than one year unless the property has been sold.
Landlord Utilities (Senate Bill 120): Requires utility companies to notify residential tenants of landlord's past due accounts and upcoming shutoffs, and allows tenants to begin service in their own names and deduct payment from rent
Mobile home Parks (Assembly Bill 804): Prohibits management from requiring a homeowner to use a specific broker or dealer when replacing a mobile home.
Mechanic's Liens (Assembly Bill 457): Provides new procedures, including service of a Notice of Mechanic's Lien to the owner and mandatory recording of a lis pendens.
Low Water-Using Plants (Assembly Bill 1061): HOAs cannot prohibit landscaping with water-efficient plants in common interest developments.
Plumbing Fixtures (Senate Bill 407) – Effective starting January 1, 2014: New disclosure and other requirements for water-conserving plumbing fixtures.
For complete information on these bills, go to www.leginfo.ca.gov
Author Andee Allen is freelance writer, Real Estate Investor, Coach/Consultant, and California Realtor (License #01854926). You are welcome to contact Andee at andeeallen@gmail.com or on her website http://www.andeeallen.com or follow her on twitter http://www.twitter.com/andeeallen
Posted October 20th, 2009 by andeallen
