An Express Article from the California Land Title Association
Bulletin 10/11-85 - April 28, 2011
A group of mortgage bills strongly opposed by a coalition of lenders, real estate industry associations and CLTA failed passage in the Assembly Banking committee on Monday. Two were voted down in committee and another two were dropped by the author prior to the hearing. Assembly Bills 406, 407, 643, and 645 (Davis) would make a number of changes to mortgage rules if signed into law, including prohibiting balloon payments from being included in the terms of an adjustable rate loan, prohibiting the imposition of prepayment charges for loans, prohibiting a trustee from filing a notice of default unless the borrow has been provided foreclosure counseling by a mortgage broker, and requiring that a mortgage broker provide information to a borrower about different loan options. Another bill, AB 935 (Blumenfield) also failed passage but has been granted reconsideration and could be voted on again. If passed, AB 935 would levy a $20,000 tax on every foreclosure in the state in an attempt to discourage foreclosures and raise revenues for local government.