In the aftermath of the national foreclosure crisis, Governor Arnold Schwarzenegger, to help prevent California homeowners and homebuyers from being impacted by fraudulent mortgage practices, has signed legislation increasing consumer protections in the lending market, including providing law enforcement with more teeth for cracking down on deceitful mortgage practices. These bills are aimed at strengthening California’s reverse mortgage laws by providing senior homeowners with greater consumer protections at the time of considering reverse mortgage agreements. These laws make it a felony to commit fraud in connection with a mortgage application, including promoting responsibility and accountability in the real estate market, including the promotion of homeownership in a safe and accountable environment.”

The Governor has signed the following bills:

* AB 329 by Assemblymember Mike Feuer (D-Los Angeles) to establish the Reverse Mortgage Elder Protection Act of 2009 to provide senior homeowners with greater consumer protections, ensuring they are fully informed of the consequences of entering into a reverse mortgage agreement. Specifically, lenders are required to provide prospective borrowers with a clear and informative written disclosure statement, including a written checklist pertaining to the risks and suitability of a reverse mortgage, prior to borrower attending loan counseling.

This entry was posted on Friday, October 16th, 2009 at 10:40 am and is filed under Reverse Mortgage News. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.