October 13, 2009  Reporting from Sacramento - In a flurry of end-of-session bill signings, Gov. Arnold Schwarzenegger approved seven new laws that provide a range of consumer protections to home-mortgage holders and may allow some to hold on to their houses.  Late Sunday night, the governor signed AB 260 by Assemblyman Ted Lieu (D-Torrance). The measure, which takes effect Jan. 1, tightens restrictions on mortgage brokers so they cannot steer borrowers to riskier, higher-interest loans when they qualify for less-expensive ones. The new law also bans so-called negative-amortization loans, which offer the option of monthly payments so low that the loan amounts can actually grow over time. ... Other mortgage-related bills signed by the governor:  * SB 36, by Sen. Ron Calderon (D-Montebello), sets licensing requirements for all residential loan originators.

Explanation of Senate Bill 36 From the Legislative Summary of Senate Bill 36: SB 36 brings California Real Estate Law, Finance Lenders Law, and Residential Mortgage Lending Act into compliance with the federal Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (the SAFE Act) by requiring those engaging in mortgage loan origination activities to obtain a license from Department of Corporations after meeting specified requirements, or if a real estate licensee, obtain a license endorsement from the Department of Real Estate after meeting specified requirements. This bill: 1)Would amend California's Real Estate Law, CFL Law and CRML Act in compliance with the SAFE Act.  Specifically, this measure would require mortgage loan originators, as defined, who are licensed real estate brokers to apply for and obtain a license endorsement from the DRE, or if they are a mortgage loan originator employee of a California licensed finance lender or  residential mortgage lender to obtain a mortgage loan originator license from the DOC, as applicable, and obtain a unique identifier, as defined, before engaging in mortgage loan origination activities in connection with a residential mortgage loan in California. 2)Would require applicants for a DRE license endorsement or DOC license to complete at least 20 hours of pre-licensing education and successfully pass an examination on that material, submit to a criminal  history background check and a credit check, and meet several requirements related to their personal character, as a condition of being approved to act as a mortgage loan originator. 3)Would further require licensed mortgage loan originators to renew their DRE license endorsements and DOC licenses  annually , by completing at least 8 hours of continuing education, as specified, and continuing to meet the minimum standards for license endorsement/ approval. 4)Would provide that the Real Estate Law sections of this   measure are operative when the Commissioner of Real  Estate issues a finding that the Nationwide Mortgage Licensing System and Registry is capable of two-way  electronic communication with the enterprise information system maintained by DRE. 5)Would provide that the CFL Law and CRML Act sections of this measure are operative January 1, 2010, but would further provide that no person is required to hold a  mortgage loan originator license under the CFL Law or CRML Act, nor a mortgage loan originator license endorsement under the Real Estate Law, before August 1, 2010.