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Copyright © 2012 by the first tuesday Journal Online - firsttuesdayjournal.com;
P.O. Box 5707, Riverside, CA 92517
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New legislation regulating mortgages
By Bradley Markano • Nov 2nd, 2009 • Category: Escrow, real estate newsflash
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11/05/09 update: While the recently-passed Senate Bill 36 is effective immediately, the provisions requiring licensees to obtain special mortgage origination designations will go into effect no sooner than December 1, 2010.
Last week, we reported on new legislation that makes it more difficult for lenders and loan modification firms to defraud homeowners. In addition to these, a series of further laws grant other protection to California homebuyers.
No sooner than December 1, 2010, mortgage originators will be forbidden from issuing loans unless they obtain a special designation from the Department of Real Estate (DRE). Sellers will be prohibited from requiring buyers to use a specific escrow or insurance agency in a purchase agreement.
Effective January 1, 2010, all contracts, including real estate purchase agreements, must be translated into the language of negotiation. Also on January 1, 2010, the crime of mortgage fraud will be considered a felony. The rules governing reverse mortgages are also then altered to require lenders to make further disclosures to clarify the nature of these relatively unknown and often confusing loans.
first tuesday take: In the next week or two, first tuesday will publish more detailed “Legislative Watches” on this material, clarifying the application of these new laws to help you keep abreast of the most current news in California real estate. Stay tuned to our Legislative Watch section to keep track of what’s coming your way from Sacramento.
Re: “Schwarzenegger signs seven new mortgage laws”, from the Los Angeles Times
Also see our Sacramento Gossip section for other California real estate bills passed or pending.
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Copyright © 2012 by the first tuesday Journal Online - firsttuesdayjournal.com;
P.O. Box 5707, Riverside, CA 92517
Readers are encouraged to reproduce and/or distribute this article.
Copyright © 2012 by first tuesday Realty Publications, Inc. Readers are encouraged to reprint or distribute this information with credit given to the first tuesday Journal Online — P.O. Box 5707, Riverside, CA 92517.
Bradley Markano is a licensed real estate agent and handles first tuesday's Market Charts.
Email this author | All posts by Bradley Markano
I am a licensed real estate agent and I also took classes for a year as a loan officer. The instructor of the class did not provide any type of certificates. He stated that our DRE licenses covered us for mortgagee/loans.
My question: Now that a new law has been signed how do we go about getting this mortgage certificate. I am no longer with the agency that wrote loans as well.
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“Effective immediately, mortgage originators are forbidden from issuing loans unless they obtain a special designation from the Department of Real Estate (DRE).”
Effective immediately? Really? Which law are you talking about? SB36? According to the DRE website, this law will require mortgage loan originators to get an extra endorsement to their license starting March 1, 2011. At the time of their Fall newsletter, they had not determined exactly what types of exams and/or education would be required.
Please clarify your statement “effecitve immediately”.
Thanks.
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I have had a Real Estate Sales License for over 25 years and have been in the lending/financing business for over 40 years. This is the first time that I’m hearing about the new law for loan agents to get a special new license.
I’m very upset that the Dept. of R/E didn’t notify each licensee of this change. How do we go about getting our new loan agent license? Also, can we still produce loans while we are trying to get the new lending license?
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where do we apply for the new endorsement to our license?
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See Page 11 of this document:
http://dre.ca.gov/pdf_docs/rebfall_09.pdf
The article is titled “Update on SAFE Mortgage Licensing Act”
DRE under Senate Bill 36 will issue the special designation for mortgage brokers. According to this article it is to start March 1, 2010. However, the author of the blog to which we are responding to says that “effective immediately” we need a designation in order to do loans. It is not clear if he is refering to SB36 or something else. I think he is wrong, but again, it is not clear what he is writing about.
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We have amended the story to more accurately reflect the timeframe of the statute. While the referenced bill (SB 36) was enacted as an emergency statute and made effective immediately, the designation will be required no sooner than December 1, 2010. We apologize for the miscommunication.
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It was very clear tome that SB36 is effective immediatly, but we have to Dec 1, 20010 to comply. So go out there and keep brining in those Loans. Make it happen!
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