Legislative Updates

2 of 3 Wise Men Visit CMA

N. Mitchell Feinstein, Esq.

Last week, two of the 3 Wise Men, Guy and Mitch, visited the CMA conference held in Sacramento. Many old friends were greeted and new relationships formed. The Wise Men were happy to receive so much positive feedback regarding our website and e-newsletters that bring news and new ideas to the mortgage lending industry. The CMA conference covered several important subjects, none more important than the Legislative Update detailing the package of bills proposed by the California Attorney General that seeks to impose stricter limits on foreclosure and lending than those agreed to in the national settlement with major lenders. While the battle is far from over,...

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JOBS Act and You!

JOBS Act and You!

As you may be aware, President Obama signed the “Jumpstart Our Business Startups Act” (the JOBS Act) on April 5. This bill will make it substantially easier for companies to raise money, although key provisions do not take effect immediately. Will these changes provide opportunities — or challenges — to those selling interests in notes secured by deeds of trust and similar investments? Over the past 25 years, many new forms of securities offerings of interests in notes secured by deeds of trusts or “pool” arrangements for notes secured by deeds of trust have been created, some of which rely on rules that exempt the seller of...

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California Legislature Moves to Impose Due Diligence Standards on Brokers

California Capitol Building

By N. Mitchell Feinstein, Esq. An analysis of new legislation that will require brokers to qualify their investors before taking their money. Read on to learn more about what changes to expect and how you can access new tools to protect yourself and your business now. Please be sure to take advantage of the free offer located at the bottom of this message. For at least ten years I have been preaching to the mortgage brokerage industry that every day the members were acting less like real estate brokers and more like securities dealers.  My diatribe goes back to my being a member of the committee—appointed by...

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Analysis and Response to Penal Code Sections 186.11 and 186.12

money-house

Asset Seizure Click this link to view the text of Penal Code Sections 186.11 and 186.12 apparently pursued by the AG and County DAs. AB 1293 was Chaptered on September 30th, 2011. The seizing of assets of white-collar criminals as an enhancement in aggravated fact situations, as defined, may be dangerous for real estate and mortgage brokers, escrow holders, appraisers, developers, and principals of small to moderate sized hedge funds, among others.  Three to four potential felonies are low hanging fruit relatively easy to prove up and establish, e.g., comingling and conversion (even in the context of forming an entity with private parties to acquire interests in...

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National Mortgage Servicing Settlement

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The National Settlement Executive Summary, the Mortgage Servicing Settlement Fact Sheet, and the Servicing Standards Highlights for the recent mortgage servicing settlement among the United States Justice Department, federal agencies identified within the Executive Summary, certain state Attorneys General, and five leading residential mortgage loan servicers including Bank of America; Citigroup, Inc.; J. P. Morgan Chase; Wells Fargo; and, Ally Financial, Inc. (formerly GMAC) collectively describe a significant accomplishment for homeowners receiving benefits from the settlement. Included within the settlement provisions is a prohibition against dual or two tracking by  mortgage loan servicers, e.g., loan servicers are reportedly not to engage in discussions or negotiations with borrowers...

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Action by Governor Brown Threatens Extinction of Mortgage Brokers

In his most recent Budget Proposal, Governor Brown has included plans to consolidate all businesses in the financial industry under one head. He proposes the elimination of the Department of Real Estate and the Office of Real Estate Appraisers and placing jurisdiction of these licensees under the Department of Consumer Affairs. At the same time the Department of Corporations and the Department of Financial Institutions will be merged into one new entity called the Department of Business Oversight. It seems that the Governor wants the consumer groups to limit the operations of the mortgage brokers, and the regulators of the big banks to regulate all the lenders...

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Legislative UPDATE: Summaries of Bills Chaptered By the California Secretary of State

Legislative UPDATE: Summaries of Bills Chaptered By the California Secretary of State

The source for the following summaries is the Legislative Digest for each bill. Click the bill titles to download the full text PDFs. As of today, the following measures have been Chaptered: SB 4 (Calderon and Vargas) Mortgages. Requires the notice of sale, given pursuant to a deed of trust or mortgage secured by real property containing from 1 to 4 single-family residences, contain language notifying potential bidders of specified risks involved in bidding on property at a trustee’s sale, and a notice to the property owner informing the owner about how to obtain information regarding any postponement of the sale. Requires a good faith effort to...

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Summaries of California Mortgage Industry Bills Currently Enrolled or Signed

California Capitol Building

These bills are complex and each covers more than more than one subject—an apparent new trend in Federal and State legislation. We are not addressing herein the list of measures that remain in committee or on the floor, as some of them may die and others may become two-year bills. The source for the following summaries is the Legislative Digest for each bill. Click the bill titles to download the full text PDFs. The following measures have been Enrolled, awaiting the Governor’s action: SB 6 (Calderon and Vargas) Real Estate: appraisal and valuation. Prohibits a licensee from knowingly or intentionally misrepresenting the value of real property. Prohibits...

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