BILL ANALYSIS �
AB 1950
Page 1
ASSEMBLY THIRD READING
AB 1950 (Davis)
As Amended May 21, 2012
Majority vote
PUBLIC SAFETY 4-2 LOCAL GOVERNMENT 7-2
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|Ayes:|Ammiano, Cedillo, |Ayes:|Smyth, Alejo, Bradford, |
| |Mitchell, Skinner | |Campos, Davis, Gordon, |
| | | |Hueso |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Knight, Hagman |Nays:|Knight, Norby |
| | | | |
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APPROPRIATIONS 12-5
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|Ayes:|Fuentes, Blumenfield, | | |
| |Bradford, Charles | | |
| |Calderon, Campos, Davis, | | |
| |Gatto, Ammiano, Hill, | | |
| |Lara, Mitchell, Solorio | | |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Harkey, Donnelly, | | |
| |Nielsen, Norby, Wagner | | |
| | | | |
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SUMMARY : Modifies provisions related to mortgage fraud
enforcement. Specifically, this bill :
1)Removes the sunset date on prohibitions against unlawful
mortgage loan modification or loan forbearance, as specified.
2)States that it is unlawful for any person to engage in the
business, act in the capacity of, advertise or assume to act
as a mortgage loan originator within this state without being
so licensed or without having obtained a license endorsement.
3)Extends the statute of limitations for misdemeanor crimes
related to mortgage fraud, as specified, from one year to
AB 1950
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three years after discovery of the offense, or within three
years after the completion of the offense, whichever is later.
EXISTING LAW :
1)States that prosecution for a misdemeanor must be commenced
within one year of the commission of the offense.
2)States that the prosecution for a felony not punishable by
death or life imprisonment, or for the embezzlement of public
money, must be commenced within three years, unless the
offense carries a sentence of eight years or more.
3)States that the prosecution for a felony punishable by
imprisonment of eight years or more, but not punishable by
death or life imprisonment, or for the embezzlement of public
money, must be commenced within six years.
4)States that the prosecution for a felony punishable by death,
life in prison, or for the embezzlement of public money, may
be commenced at any time.
5)States that the statute of limitations may be tolled for
specified offenses.
FISCAL EFFECT : According to the Assembly Appropriations
Committee, unknown nonreimbursable, likely minor, local law
enforcement costs as a result of deleting the sunset on existing
misdemeanor prohibitions, and extending the sunset on
misdemeanor mortgage fraud.
COMMENTS : According to the author, "Because of the complicated
nature of the mortgage crisis, it is often a while before
misconduct is discovered, at which point there is little to no
time left in the statute of limitations for the Attorney General
to investigate. Furthermore, due to the inevitable budget cuts,
there is a need to insulate the Attorney General's Mortgage
Fraud Strike Force."
Please see the policy committee analysis for a full discussion
of this bill.
AB 1950
Page 3
Analysis Prepared by : Milena Blake / PUB. S. / (916) 319-3744
FN: 0003820