BILL NUMBER: AB 941	AMENDED
	BILL TEXT

	AMENDED IN SENATE  AUGUST 23, 2007
	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 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   accept
written comments  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 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 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.
   (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.