BILL NUMBER: AB 941	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 11, 2007
	AMENDED IN SENATE  JUNE 4, 2007
	AMENDED IN ASSEMBLY  APRIL 30, 2007
	AMENDED IN ASSEMBLY  APRIL 17, 2007
	AMENDED IN ASSEMBLY  APRIL 11, 2007

INTRODUCED BY   Assembly Member Torrico

                        FEBRUARY 22, 2007

   An act relating to lending.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 941, as amended, Torrico. Real property loans: disclosures.
   Existing law, the Real Estate Law, requires a real estate broker,
who negotiates a loan to be secured by a lien on real property, to
deliver to the borrower a statement in writing containing specified
information relating to the loan transaction. Existing law requires a
lender to provide a borrower with specified information prior to
execution by the borrower of a mortgage payment instrument.
   This bill would require the Department of Real Estate,  in
conjunction  with the  cooperation of the 
Department of Corporations and the Department of Financial
Institutions, to review the  mortgage loan  
real property transaction  disclosure process and, by July 1,
2008, to  complete a draft report and post it on its Internet Web
site for public review. The bill would require the Department of
Real Estate to hold 2 public hearings to receive public comment on
its draft report and to submit a final  report to the
Legislature  by January 1, 2009,  with recommendations on
how that process can be improved, as specified.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.   (a)    The Department of Real
Estate,  in conjunction with   with the
cooperation of  the Department of Corporations and the
Department of Financial Institutions, shall review the 
mortgage loan   real property transaction 
disclosure process and  , by July 1, 2008,  report
to the Legislature with recommendations on how that process can be
improved to ensure a consumer's ability to better understand the
terms of  a   the transaction, including the
terms of his or her  mortgage loan. This report shall include,
but not be limited to, recommendations on which state-required
mortgage documents  should be updated to reflect today's
market.   should be amended, consolidated, made
optional, or   eliminated.  
   (b) The department shall complete a draft report by July 1, 2008,
which shall be posted on its Internet Web site and made available
free of charge to members of the public for review. The department
shall hold two public hearings to receive public comment on the draft
report, one in northern California and one in southern California.
The department shall also accept written comments on the draft report
through October 31, 2008, and shall submit a final report to the
Legislature by January 1, 2009.