What do you CA guys think about this?


State senator proposes new real estate, mortgage rules
January 4th, 2008 by John Gittelsohn
State Sen. Mike Machado, chairman of the Senate Banking, Finance and Insurance Committee, has introduced three new bills to tighten oversight of mortgage brokers, ban individuals found guilty of violating real estate rules and allow tax breaks for mortgage borrowers who receive relief from their lenders.

Machado, D-Linden, plans to hold a press conference Monday in Sacramento to discuss his plans.

Here’s his summary of the bills:

SB 1053 requires every Department of Real Estate (DRE) licensee who makes, brokers, or services mortgages to notify DRE about those activities on an annual basis. The bill also requires real estate brokers in charge of mortgage brokerage, lending, or servicing businesses to submit detailed compliance reviews of their books and records to DRE annually, along with business activity reports detailing the loans they made during the prior year.

SB 1054 closes two loop-holes in current law. The first provision gives DRE the ability to ban individuals who have been found guilty of violating the Real Estate law from taking a real estate-related job with a company that has a different regulator. The second provision prohibits a real estate professional who gives an opinion of value on a property to a mortgage lender from acting as the listing agent on that property for a period of one year.
SB 1055 provides state income tax relief to borrowers who have had some portion of their mortgage debt forgiven by their lender. The bill allows borrowers whose lender agrees to forgive a portion of their mortgage debt to exclude that forgiven debt from their income for state income tax purposes.

For more information on state legislation, go to http://www.leginfo. ca.gov

*cricket cricket*

there is a loop hole .........

You just need to know where to find it ....

He/She who provides the highest bpo will get the listing, right?

I see it ...hidden in plain sight. They have my vote to not add that provision. I just faxed Arnold Shwartzeneger.

The second provision prohibits a real estate professional who gives an opinion of value on a property to a mortgage lender from acting as the listing agent on that property for a period of one year.

very bad. this would discourage competition and effectively block new brokers and agents from entering the REO markets.

Beauracrats....
The more rules they create, the more problems they create. The more problems they try to solve, the more problematic situations they enable. I wonder if they would add fees to review the compliance reports?

There should be a seperation of state and economics.

Loop hole? Realtors don't need no stinkin' loop holes-they just pretend the rules don't exist. Send the check, NOW!

Nope, there is a loop hole ..........

We are not providing a lender the opinion of value, we providing that to a 3rd party who supplies it to the lender???

Help me out here. What in the world does this have to do with the sub-prime collapse or with the current financial crisis?

This guy's out of it.

It must be election time.

I'm not sure he's thinking about the sub-prime mess. If I had to guess, it's about being an unbiased third party and having no interest, financial or other, in a property you give an opinion of value on. Some think a listing agent, looking for a quick commission, may low ball his own listing in an effort to sell it quickly without regards to what's best for the client.

It could also be the case that he has some cronies who are appraisers.

Gotta be.