In addition to providing CAMP members with information about state and federal legislative and regulatory developments related to the industry, CAMP advocates for members at the state, federal and executive levels. CAMP's advocacy activities are lead by the Government Affairs Committee Chair and supported by Chapter Government Affairs Chairs through the state. All CAMP members are encouraged to participate in advocacy at the local, state, federal and executive levels.
CAMP Political Action Committee
Protect our industry and grow CAMP's political influence by contributing to CAMP's State and/or Federal PAC. Visit the CAMP PAC Webpage HERE.
2017 Legislative Update
***Check back soon for a list of 2017 bills and CAMP's position on each.***
Below is a summary of legislation from the 2016 state legislative session. Thank you to Rob Chrisman for always providing such timely information to the industry. If you don't receive Rob's Emails, sign-up HERE.
California has passed Assembly Bill 1650 which amends its real estate licensee advertising requirements to require additional disclosures. Effective January 1, 2018 the licensee is required to disclose on all solicitation materials his or her name, license identification number and unique identifier assigned to that licensee by the Nationwide Mortgage Licensing System and Registry if that licensee is also a mortgage loan originator. In addition, the commissioner may adopt regulations identifying the materials in which this information must be disclosed.
California has passed Senate Bill 983 which amends provisions regarding foreclosure attorney's fees that may be charged prior to the mailing of notice of sale pursuant to a power of sale contained in a mortgage or otherwise at any time prior to the decree for foreclosure. Section 2924c of the California Civil Code has been amended to allow collection of fees based upon the following schedule: If the unpaid principal sum secured is one hundred fifty thousand dollars ($150,000) or less, then the trustee's or attorney's fees are authorized to be in a base amount that does not exceed three hundred fifty dollars ($350).
Are lawyers having fun yet? If the unpaid principal sum secured exceeds one hundred fifty thousand dollars ($150,000) then fees are authorized to be in the base amount of three hundred dollars ($300), plus one-half of 1 percent of the unpaid principal sum secured exceeding fifty thousand dollars ($50,000) up to and including one hundred fifty thousand dollars ($150,000) plus one-quarter of 1 percent of any portion of the unpaid principal sum secured exceeding one hundred fifty thousand dollars ($150,000) up to and including five hundred thousand dollars ($500,000), plus one-eighth of 1 percent of any portion of the unpaid principal sum secured exceeding five hundred thousand dollars ($500,000).
California has amended Sections 1785.16.2 and 1788.18 of the Civil Code to further protect consumers who may be a victim of an identity theft crime. The act requires a debt collector to cease collection activities and to complete a review prior to resuming collection activities where a debtor provides to the debt collector certain items alleging that they are a victim of an identity theft crime.
California has passed Assembly Bill 2566 which amends Section 1185 of the Civil Code with respect to identity documents a notary public may rely on when making the determination that a person making an acknowledgement is the person described. Existing law allows a notary public to reasonably rely on a passport issued by a foreign government and stamped by the United States Citizenship and Immigration Services of the Department of Homeland Security. This provision has been repealed and amended to authorize the acceptance of a valid consular identification document issued by a consulate from the applicant's country of citizenship or a valid passport from the applicant's country of citizenship.
California has passed SB 657, effective 1/1/17, which updates the California Residential Mortgage Lenders Act to include in the definition of '"Lender'", a person who "Is not a natural person and engages in the activities of a loan processor or underwriter for a residential mortgage loan but does not solicit loan applicants, originate mortgage loans, or fund mortgage loans unless the person is also a lender under paragraph (1)." It also includes as a person who "Is a natural person and an independent contractor who engages in the activities of a loan processor or underwriter for a residential mortgage loan as described in subdivision (c) of Section 50003.6 but does not solicit loan applicants, originate mortgage loans, or fund mortgage loans unless the person is also a lender under paragraph (1)." SB 657, in addition to maintaining the existing requirement that a licensee shall continuously maintain a minimum tangible net worth of $250,000, now authorizes the Commissioner, at his or her discretion, to require a lender to continuously maintain a net worth greater than $250,000 but not to exceed the net worth required of an approved FHA lender.
California has passed SB 1150 which amends the California Civil Code to provide foreclosure protection to a person claiming to be the successor in interest of a deceased borrower. SB 1150 prohibits a loan servicer from recording a notice of default in the event a person, not a party to the loan or promissory note, notifies the loan servicer that the borrower has died and claims to be a successor in interest to the borrower. The loan servicer may not record the notice of default until the servicer requests reasonable documentation of death from the claimant and requests reasonable documentation demonstrating the claimant's ownership interest in the real property and provides the claimant a reasonable amount of time to procure and provide such documentation. When a loan servicer receives reasonable documentation of the status of the claimant as a successor in interest as well as evidence of the claimant's ownership interest in the real property, then the claimant is a successor in interest.
Support: H.R.3393: The Mortgage Fairness Act of 2015
This bill (text found HERE) would make a technical correction to the Dodd-Frank Act, allowing low- and moderate-income consumers and homebuyers some flexibility in the loans they choose so that they can have better cash flow at the time of closing. HERE you can find NAMB’s talking points on the issue and watch this SHORT VIDEO.
SUPPORT – Assembly Bill 1645: Mortgage Guaranty Insurance (Dababneh)
§ Prior law required mortgage guaranty insurers to acquire reinsurance that did not improve the insurer's risk profile, was costly because the mortgage guaranty insurer must capitalize an affiliated reinsurer to meet this misguided requirement, and resulted in unnecessary regulatory costs for both the Department of Insurance (DOI) and the mortgage guaranty insurer. As a result, suspending the rule that lead to this result made sense. However, that suspension of the rule came with a sunset clause. Subsequent history has shown that repealing the rule was the right approach, and therefore making that repeal permanent NOW is appropriate.
§ AB 1645 prevents the automatic re-enactment of a restriction on the amount of mortgage guaranty insurance that a mortgage guaranty insurer can write, absent that mortgage guaranty insurer purchasing reinsurance on those policies.
§ AB 1645 deletes existing law that requires that a mortgage guaranty insurer limit its coverage to no more than a net of 30% at risk of the entire indebtedness to the insured for the class of insurance that insures against financial loss by reason of nonpayment of principal, interest, and other sums under any evidence of indebtedness secured by a mortgage, deed of trust, or other instrument.
SUPPORT – Assembly Bill 2693: Financing Requirements: Property Improvements (Dababneh)
§ AB 2693 Creates the PACE Preservation and Consumer Protections Act by adding consumer protections to California's Property Assessed Clean Energy (PACE) Program.
§ Existing law requires home loans to be accompanied by the Truth in lending RESPA Integrated Disclosure (TRID), which is intended to allow an "apples to apples" comparison shopping of various loan products. However, PACE transactions are technically not loans and are not required to be accompanied by a TRID disclosure. Current law gives delinquent PACE assessments “super-priority” status, as part of the tax bill, over other recorded obligations; lenders require these “super liens” to be paid off before any new financing can be obtained. This measure will require a TRID-like disclosure be provided to a property owner participating in a PACE program, a 3 day right of rescission, and a notice that the property owner may not be able to refinance or sell without paying off the PACE "loan.”