The Compliance Group’s Thoughts & Analysis
The Blog for the Premier Mortgage Compliance Organization
Loan Modifications in California and SB94
July, 26 2009
Well, here we have it folks…
SB94 now has an urgency provision which means it will take effect immediately if signed into law (instead of Jan 1, 2010). The bill is in the Assembly Appropriations Committee.
In a nut shell this bill will do the following:
- Prohibit until January 1, 2013, any person, including a real estate licensee from demanding or receiving any preperformance compensation, as specified, requiring any security as collateral for final compensation, or taking a power of attorney from a borrower, and would make a violation of that prohibition a misdemeanor or subject to specified fines.
- Disclosure requirements and foreign language disclosure requirements.
- Certain exemptions would apply – but most loan modification companies would not qualify for any of the exemptions.
- All advertisements be sent to the Commissioner.
Stay tuned for more information on this bill.
File under: advance fee, advance fee agreement, california sb94, loan modification