Two bills to tighten mortgage lending laws introduced
Two bills to strengthen the state’s regulation of mortgage lenders were introduced in the Assembly Tuesday.
AB152 requires anyone who performs services for compensation as a foreclosure consultant, loan modification consultant and others to register and be licensed as mortgage brokers or agents.
AB151 requires mortgage brokers to include their license number on each loan secured by a lien on real property. Failure to comply could result in a fine of up to $10,000. In addition, AB151 would require financial institutions that offer non-traditional loan products to explain the requirements in those agreements in plain language easy for the layman to understand.
Those are among the first in a series of bills expected this session dealing with the housing market, mortgage lending and financial institutions dealing in property loans and agreements.
They will be reviewed by the Assembly Commerce and Labor Committee.