BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 919
                                                                  Page  1

          Date of Hearing:   May 6, 2009

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Kevin De Leon, Chair

                     AB 919 (Nava) - As Amended:  April 13, 2009 

          Policy Committee:                              Banking and  
          Finance      Vote:                            11-0

          Urgency:     No                   State Mandated Local Program:  
          Yes    Reimbursable:              Yes

           SUMMARY  

          This bill requires a rider to be attached to a mortgage or deed  
          of trust executed after January 1, 2010, which provides  
          information on the participants of a mortgage transaction - the  
          appraiser, lender, loan originator and real estate broker. The  
          bill also requires that county recorders reject for recordation  
          any mortgage or deed of trust that does not include the  
          completed rider. 

           FISCAL EFFECT  

          Costs to county recorder for verifying inclusion of a completed  
          rider with mortgage documents could constitute a reimbursable  
          mandate, resulting in a potentially significant (more than  
          $200,000 annually) increase in state GF expenditures.  

           COMMENTS  

           Rationale  . This bill is intended to assist law enforcement and  
          prosecutors with mortgage fraud cases by making sure that the  
          names and license numbers of person who participate in a  
          mortgage loan transaction are in the public record. Supporters  
          of the bill assert that mortgage fraud is a growing, but often  
          overlooked, problem that has contributed to the current mortgage  
          crisis. 

           Analysis Prepared by  :    Brad Williams / APPR. / (916) 319-2081