For Immediate Release                                              CONTACT:    Mike Belote

September 25, 2008                                                                           (916) 441-5859

CALIFORNIA MORTGAGE ASSOCIATION HAILS GOVERNOR’S LEGISLATIVE ACTIONS TO PROTECT CONSUMERS AND PRESERVE HOMEOWNERSHIP

(SACRAMENTO) – Representing California mortgage brokers, lenders and real estate professionals dedicated to consumer protection and industry professionalism, the California Mortgage Association today hailed Governor Arnold Schwarzenegger’s legislative actions on behalf of consumers to increase transparency, protect borrowers and create a more accountable lending environment. 

“As Californians seek to navigate one of history’s most uncertain economic periods, Governor Schwarzenegger has acted boldly to protect the American Dream of Homeownership,” Association President George Eckert said.  “Homeowners and those seeking to become owners will benefit greatly.  Governor Schwarzenegger wisely vetoed Assembly Bill 1830, which would have created a patchwork quilt of regulations applying only to California lenders but not federally chartered institutions, limiting consumer protections and increasing confusion.  The legislation, while well intentioned, would have had unintended negative consequences and minimum overall benefit.   For example, the bill would have encouraged frivolous lawsuits by allowing plaintiff’s lawyers to recover attorney’s fees if their lawsuit was successful, but at the same time prohibiting defendants from recovering attorney’s fees if the lawsuit was rejected.”

To protect consumers and strengthen accountability, the Governor signed the following bills:

·         SB 1461 by Senator Gloria Negrete McLeod (D-Montclair) requires real estate agents to disclose their license number on all first point of contact marketing materials and property purchases beginning July 1, 2009.

·         SB 1737 by Senator Michael Machado (D-Linden) authorizes the Department of Real Estate (DRE) to suspend or bar a person who has committed a violation of the Real Estate Law if the suspension or bar is in the best interest of the public. 

·         To help Californians refinancing their mortgages in the aftermath of the foreclosure crisis, the Governor signed SB 870 by Senator Mark Ridley-Thomas (D-Los Angeles) which allows the California Housing Finance Agency to more quickly establish a mortgage refinance program and SB 1065 by Senator Lou Correa (D-Santa Ana) that includes the refinancing of home mortgages in the criteria for a city or county-administered home financing program.

The mission of CMA is for the on-going education of California licensed mortgage broker/lenders as well as the preservation of the industry by way of legislative review and reform.  CMA is by far one of the strongest voices ever heard in California legislation which promotes and supports the community based loan broker/lenders.  For more information, please visit www.cmabrokers.org.