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DRE Legislation 2009

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DRE Presentation from the Fraud in Real Estate Town Hall Meeting of 3/2/10

DRE Presentation from the Fraud in Real Estate Town Hall Meeting of 3/2/10

Published in: Business, Economy & Finance
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Transcript

  • 1. Presented by: Tom Pool Assistant Commissioner 2009 Legislation and Regulation Update Providing Service, Protecting You
  • 2. SB 36 (Calderon)
    • Enacts the Secure and Fair Enforcement for Mortgage Licensing (SAFE) Act
    • Federal Mandate
    • Requires all MLOs to meet standards and register in a National Database
    • DRE licensees will need an endorsement
    • Does not raise license fees/annual endorsement fee
    • Endorsement will be required by December 2010
    Providing Service, Protecting You
  • 3. SB 94 (Calderon)
    • Prohibits the collection of Advance Fees in connection with loan modification services
    • Mandates disclosure that similar services are available from non-profit housing counselors at no cost to the borrower
    • Failing to provide disclosure can result in fines
    • Contains urgency clause
    • Most of its provisions sunset 1/1/2013
    Providing Service, Protecting You
  • 4.
    • Enacts the Buyer’s Choice Act
    • Prohibits a seller of a REO from requiring the buyer to use a specific title insurance or escrow company
    • Violations by a seller could result in 3 times all escrow and title insurance fees and license discipline
    • Sunsets in 2015
    AB 957 (Galgiani) Providing Service, Protecting You
  • 5. AB 1094 (Conway)
    • Requires all licensed businesses to take all reasonable steps to confidentially dispose of records containing personal information
    • Records containing, but not limited to, a name, social security number, signature, address, telephone number, and account numbers are generally considered records containing personal information
    • Allows customers to recover civil penalties up to $3,000 per violation
    Providing Service, Protecting You
  • 6. SB 239 (Pavley)
    • Creates a specific section in the Penal Code defining mortgage fraud
    • Fraud is defined, in part, as:
      • Deliberately making any misstatement, misrepresentation or omission during the mortgage process that:
      • Is relied upon by the lender, borrower, or any other person involved in the mortgage lending process
    • Violations can be prosecuted as a felony or misdemeanor
    Providing Service, Protecting You
  • 7. Regulations Update Title 10, California Code of Regulations Providing Service, Protecting You
  • 8. Adoption of Section 2773 License ID Disclosure
    • Requires disclosure of License ID on all first point of contact materials
    • License ID of employing broker DOES NOT need to be disclosed
    • Materials that need to disclose your License ID:
      • Business cards
      • Stationery
      • Web sites
      • Promotional materials/brochures
      • Email
    Providing Service, Protecting You
  • 9. Section 2773 continued…
    • Materials that DO NOT need your License ID:
      • For sale signs
      • Print Ads in newspapers or periodicals
      • Radio and Television Ads
      • Streaming video
    • Exception to Regulation 2773
      • Any solicitation advertising mortgage loans
    Providing Service, Protecting You
  • 10. Amendment to Regulation 2731 Fictitious Business Names
    • Cannot use “Escrow” in DBA, unless:
      • DBA includes the term:
        • “ a non-independent broker escrow”
      • If you already have a DBA containing “escrow”, you must include the following in your advertising:
        • “ a non-independent broker escrow”
    Providing Service, Protecting You
  • 11. Adoption of Regulation 2903 Dual Agent Disclosure
    • When representing a Buyer or Seller; and
    • You also intend to arrange the financing; you must:
      • Disclose in writing within 24 hours your dual role to all parties to the sale
    Providing Service, Protecting You
  • 12. Adoption of Regulations California Foreclosure Prevention Act (CFPA)
    • CFPA prohibits a Lender or Servicer from completing a foreclosure for an additional 90 days; unless:
      • Lender or Servicer has received an exemption from its regulator
      • Exemption is granted if Lender or Servicer has a comprehensive loan modification program
      • Program is in compliance with the Federal Home Affordable Modification Program
      • Exemptions are posted on DRE’s website
    Providing Service, Protecting You
  • 13. Conclusion Where to Find More Information
    • Legislative Resources
      • www.leginfo.ca.gov
    • Regulation Resources
      • www.oal.ca.gov
    • Real Estate Law
      • www.dre.ca.gov
    Providing Service, Protecting You

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