BILL ANALYSIS Ó
SB 376
Page 1
SENATE THIRD READING
SB 376 (Fuller)
As Amended August 15, 2011
Majority vote
SENATE VOTE :40-0
BUSINESS & PROFESSIONS 9-0
APPROPRIATIONS 17-0
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|Ayes:|Hayashi, Bill Berryhill, |Ayes:|Fuentes, Harkey, |
| |Allen, Butler, Eng, | |Blumenfield, Bradford, |
| |Hagman, Hill, Ma, Smyth | |Charles Calderon, Campos, |
| | | |Davis, Donnelly, Gatto, |
| | | |Hall, Hill, Lara, |
| | | |Mitchell, Nielsen, Norby, |
| | | |Solorio, Wagner |
|-----+--------------------------+-----+--------------------------|
| | | | |
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SUMMARY : Revises the definition of "real estate broker" to
allow brokers to make, arrange, or service chattel mobilehome
loans under their Department of Real Estate (DRE) license,
without having to secure an additional finance lender or broker
license from the Department of Corporations. Specifically, this
bill :
1)Defines "real estate broker" to include a person who, among
other things:
a) Solicits borrowers or lenders for or negotiates loans or
collects payments or performs services for borrowers or
lenders or note owners in connection with loans secured
directly or collaterally by liens on real property, or
chattel mobilehome loans if the mobilehome has been
registered pursuant to current law, or on a business
opportunity; or,
b) Sells or offers to sell, buys or offers to buy, or
exchanges or offers to exchange a real property sales
contract, or a promissory note secured directly or
collaterally by a lien on real property, or chattel
mobilehome loans if the mobilehome has been registered
SB 376
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pursuant to current law, or a business opportunity, and
performs services for the holders thereof.
2)Specifies that a person licensed as a real estate broker who
acts pursuant to specified current law or a) or b) above, and
who makes, arranges, or services chattel mobilehome loans, if
the mobilehome has been registered pursuant to current law,
need only meet the requirements for licensure under the Real
Estate Law.
3)Subjects transactions involving chattel mobilehome loans with
multiple lenders to existing Real Estate Law governing
multi-lender loans.
FISCAL EFFECT : According to Assembly Appropriations Committee,
costs associated with this legislation are minor and absorbable
within existing DRE resources.
COMMENTS : The federal Secure and Fair Enforcement for Mortgage
Licensing Act of 2008 (SAFE Act), part of the Housing and
Economic Recovery Act of 2008, requires all states to license
and register their mortgage loan originators (MLOs) through a
nationwide registry. California began pursuing legislation to
comply with the SAFE Act in 2009, and continues refining state
law in conformity with regulations implementing the SAFE Act,
which are still being developed.
This bill amends California Real Estate Law to allow property
management companies that manage mobilehome parks and already
must be licensed as real estate brokers by DRE to make used
mobile home loans under their DRE broker license and an MLO
license endorsement (required under the SAFE Act), without
having to acquire an additional finance lender license from the
Department of Corporations. The bill also incorporates
transactions involving chattel mobilehome loans with multiple
lenders into existing Real Estate Law governing multi-lender
loans, which provides protections for lenders involved in
multi-lender loans secured by real property and imposes
requirements on real estate brokers who service such
transactions.
Analysis Prepared by : Angela Mapp / B.,P. & C.P. / (916)
319-3301
SB 376
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FN: 0002152