CA Gov Schwarzenegger Signs Mortgage Related Bills

CA Governor Schwarzenegger sign three mortgage related bills aimed at protecting homeowners and increase affordable housing. Foreclosures in CA hit 17.408 for the three months ended June 30 up 799% from the same period last year, according to DataQuick Information Services, a La Jolla firm One of the three bills signed would permit state agencies to adopt emergency regulations to ensure that all mortgage lenders and brokers are subject to federal guidelines on non-traditional mortgages. Those guidelines, aimed at reducing the number of loans to people who can’t afford them, apply to national banks but not to state-licensed lenders. The second bill would make it a crime for appraisers to become involved in valuing properties for transactions in which their compensation is tied to the final price generated by the appraisal. This is to stop appraisers from overvaluing properties to increase their fees. The Third bill will raise the debt limit applied to the California Housing Finance Agency by $2 Billion. That presumably would increase the amount of affordable housing. .