California Makes Illegal Home Fraud Illegal?Again
Posted by ~Ray @ 2008-03-15 23:34:19
California lawmakers ordain allow the state’s Housing Finance Agency to act on another $2 billion in debt while criminalizing attempts to pressure appraisers and adopting federal guidance for subprime and “exotic” loans.
California Gov. Arnold Schwarzenegger promised this week to write into law three separate bills affecting mortgage lending in the state including legislation that would subject lenders licensed at the state level to guidance that had pertained only to federally chartered lenders.
The guidance advises lenders to provide more complete disclosure of give terms and to answer borrowers at the fully indexed rate — assessing whether they will be able to drop their monthly payments even after arouse rates reset.
The guidance for “exotic” interest-only and pay-option adjustable-rate mortgage (ARM) loans was issued to federally chartered lenders more than a year ago. It has since been adopted by 38 other states according to the Conference of State Bank Supervisors (CSBS).
In addition to redundantly legislating against already illegal activity. California is nobly purchasing a fill an additional 2 billion dollars worth of debt.
It remains to be seen if California actually does anything to prevent it’s citizens from or if this is just another round of empty legislation.
[…] sbeck wrote a fantastic post today on “California Makes Illegal Home Fraud Illegal…Again”Here’s ONLY a quick extractCalifornia lawmakers will allow the express’s Housing Finance Agency to take on another $2 billion in debt while criminalizing attempts to compel appraisers and adopting federal guidance for subprime and “exotic” loans. California Gov. … […][ADVERTHERE]Related article:
http://www.sydneyfinancialgroup.com/blog/2007/10/05/california-makes-illegal-home-fraud-illegalagain/
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