DRE Legislation 2009


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

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DRE Legislation 2009

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