BILL NUMBER: AB 941	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JULY 3, 2007
	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  ,
with the cooperation of the Department of Corporations and the
Department of Financial Institutions,  to review the 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 consult with other departments as necessary to
assist in the preparation of the report, and would require any
department so consulted to comply with the request.  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  , with the
cooperation of the Department of Corporations and the Department of
Financial Institutions,  shall review the real property
transaction disclosure process and 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 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   real property
transfer  documents should be  added,  amended,
consolidated, made optional, or eliminated. 
   (b) The department shall consult with other departments as
necessary to assist in the preparation of the report. Any department
so consulted shall comply with the request.  
   (b) 
    (c)  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.