AB 260 is sponsored by Lowenthal, Josh (Democratic), Bass, Carter, Chesbro, Jones, John A. Perez, Salas, Saldana, Coto, DeSaulnier, Eng, Florez, Furutani, Huffman, Krekorian, Leno, Lieu, Ma, Nava, Price, Ruskin, Swanson, Wolk, and Yamada.

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California 2009-2010 Regular Session Status: Enacted 1 D cosponsors

AB 260 — Lending.

Last action October 11, 2009 — Chaptered by Secretary of State - Chapter 629, Statutes of 2009.

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✓
Introduced
✓
In Committee
✓
Passed Assembly
✓
Passed Senate
✓
To Executive
6
Enacted

This bill has been enacted into law. Introduced February 11, 2009. Enacted.

Prognosis

Likely to advance 82% · moderate confidence

Where this bill stands today.

Odds of enactment

High

How often bills like it became law.

Enacted

Current position in the legislative process.
24 sponsors

1 primary, 23 co-sponsors signed on.
Single-party support

Sponsorship is currently within one party (1 D).
Cleared a recorded vote

Passed 10 recorded votes so far.

Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.

Summary

(1) The Real Estate Law provides for the licensure and regulation of real estate brokers and salespersons by the Real Estate Commissioner. Existing law authorizes the commissioner to suspend or revoke the license of a real estate licensee or corporation, or to deny the issuance of a license to an applicant or corporation, for specified violations. This bill would further authorize the commissioner to suspend or revoke those licenses, or to deny issuance of those licenses, upon a violation of specified federal lending laws or regulations or upon the violation or failure to comply with specified provisions of state law relating to mortgages. (2) Existing law imposes certain limitations and prohibitions on licensed persons, as defined, with respect to the making of a covered loan, defined as a consumer loan in which the original principal balance of the loan does not exceed the most current conforming loan limit for a single-family first mortgage loan established by the Federal National Mortgage Association in the case of a mortgage or deed of trust, and as specified. Existing law does not regulate or define the term "higher-priced mortgage loan." This bill would establish "higher-priced mortgage loans," as defined, as a new category of regulated loans. The bill would, among other things, limit prepayment penalties and prohibit provisions for negative amortization. The bill would prohibit a licensed person, as defined, from making false, deceptive, or misleading statements or representations in connection with higher-priced mortgage loans. The bill would also, among other things, prohibit a mortgage broker, as defined, who arranges higher-priced mortgage loans with prepayment penalties from receiving a compensation that exceeds certain amounts. The bill would provide that a violation of the provisions regulating higher-priced mortgage loans by a licensed person is also a violation of the person's licensing law. The bill would authorize a licensing agency or the Attorney General to enforce the provisions regulating higher-priced mortgage loans. The bill would authorize civil penalties in an amount up to $10,000 against a licensed person who willfully and knowingly violates the provisions regulating higher-priced mortgage loans, and would nullify prepayment penalties or yield spread premiums that violate these provisions. The bill would also establish specified duties for mortgage brokers performing mortgage brokerage services for higher-priced mortgage loans. The bill's provisions would apply to higher-priced mortgage loans originated on or after July 1, 2010. (3) Existing law imposes certain limitations and prohibitions on specified licensees, including commercial banks, credit unions, finance lenders, and residential mortgage lenders, with respect to the making of consumer loans. This bill would provide that a violation of specified federal lending laws or regulations by those licensees is also a violation of the licensing law of the licensee. The bill would also provide that a mortgage broker, as defined, providing mortgage brokerage services, as defined, to a borrower is the fiduciary of the borrower, and any violation of the broker's fiduciary duties is a violation of the mortgage broker's licensing law and specified civil penalty and liability provisions. The bill would further provide that this fiduciary duty includes a requirement that the mortgage broker place the economic interest of the borrower ahead of his or her own economic interest. (4) Because a violation of the bill's provisions by certain licensees may be punished as crimes under the licensing law of the licensees, the bill would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.

Bill Text

Chaptered 10/11/09 - Chaptered Current pdf October 11, 2009
Enrolled 09/16/09 - Enrolled pdf September 16, 2009
Amended 09/02/09 - Amended Senate pdf September 02, 2009
Amended 07/23/09 - Amended Senate pdf July 23, 2009
Introduced 02/11/09 - Introduced pdf February 11, 2009
AB260 View text html

Action History

October 11, 2009
Chaptered by Secretary of State - Chapter 629, Statutes of 2009.
October 11, 2009
Approved by the Governor.
September 25, 2009
Enrolled and to the Governor at 5 p.m.
September 10, 2009
Senate amendments concurred in. To enrollment. (Ayes 50. Noes 26. Page 3262.)
September 09, 2009
In Assembly. Concurrence in Senate amendments pending.
September 08, 2009
Read third time, passed, and to Assembly. (Ayes 22. Noes 18. Page 2293.)
September 03, 2009
Read second time. To third reading.
September 02, 2009
Read third time, amended. To second reading.
September 01, 2009
Read second time. To third reading.
August 31, 2009
(received by desk August 28, 2009 pursuant to JR61(a)(11))
August 31, 2009
From committee: Do pass. (Ayes 8. Noes 5.) (August 27).
August 17, 2009
In committee: Placed on Appropriations suspense file.
July 23, 2009
Read second time, amended, and re-referred to Com. on APPR.
July 23, 2009
From committee: Amend, do pass as amended, and re-refer to Com. on APPR. (Ayes 3. Noes 2.) (July 14).
July 13, 2009
From committee: Do pass, and re-refer to Com. on JUD. Re-referred. (Ayes 7. Noes 3.) (July 9).
July 01, 2009
In committee: Hearing postponed by committee.
June 11, 2009
Referred to Coms. on B., F. & I. and JUD.
June 02, 2009
In Senate. Read first time. To Com. on RLS. for assignment.
June 01, 2009
Read third time, passed, and to Senate. (Ayes 50. Noes 28. Page 1835.)
May 29, 2009
Read second time. To third reading.
May 29, 2009
From committee: Do pass. (Ayes 12. Noes 5.) (May 28).
April 29, 2009
In committee: Set, first hearing. Referred to APPR. suspense file.
April 14, 2009
From committee: Do pass, and re-refer to Com. on APPR. Re-referred. (Ayes 7. Noes 3.) (April 14).
March 27, 2009
In committee: Hearing postponed by committee.
March 24, 2009
From committee: Do pass, and re-refer to Com. on JUD. Re-referred. (Ayes 7. Noes 3.) (March 23).
March 04, 2009
Referred to Coms. on B. & F. and JUD.
February 12, 2009
From printer. May be heard in committee March 14.
February 11, 2009
Read first time. To print.

Sponsorship breakdown

Export CSV (upgrade) →

1 sponsors · 23 co-sponsors · 98 not signed on · 4 voted No

Sponsors (1)

Lieu

Not signed on (98)

98 members have not signed on to this bill.

Show all 98 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

AB 260 LIEU Concurrence in Senate Amendments

September 10, 2009

Passed 59 Yea · 29 Nay · 4 Other

Party	Yea	Nay	Present	Not Voting
Unaffiliated	55	27	0	4
Democratic	3	0	0	0
Republican	1	2	0	0
Total	59	29	0	4
% of votes cast	64%	32%	0%	4%

How each member voted (92)

Member	Party	Vote
Hall	—	Yea
Carter	—	Yea
Evans	—	Yea
Feuer	—	Yea
Chesbro	—	Yea
Charles	—	Yea
De	—	Yea
La	—	Yea
Torre	—	Yea
De	—	Yea
Leon	—	Yea
Fong	—	Yea
Beall	—	Yea
Block	—	Yea
Bonnie	—	Yea
Lowenthal	—	Yea
V.	—	Yea
Manuel	—	Yea
Perez	—	Yea
John	—	Yea
A.	—	Yea
Perez	—	Yea
Portantino	—	Yea
Salas	—	Yea
Saldana	—	Yea
Conway	—	Nay
Cook	—	Nay
DeVore	—	Nay
Bill	—	Nay
Tom	—	Nay
Emmerson	—	Nay
Fuentes	—	Yea
Fuller	—	Nay
Fletcher	—	Nay
Audra	—	Nay
Furutani	—	Yea
Galgiani	—	Yea
Gilmore	—	Nay
Hagman	—	Nay
Duvall	—	Not Voting
Bass	—	Yea
Blakeslee	—	Not Voting
Harkey	—	Nay
Hayashi	—	Yea
Hill	—	Yea
Huber	—	Yea
Jeffries	—	Nay
Knight	—	Nay
Lieu	—	Yea
Logue	—	Nay
Mendoza	—	Yea
Miller	—	Nay
Monning	—	Yea
Nava	—	Yea
Ruskin	—	Yea
Silva	—	Nay
Skinner	—	Yea
Solorio	—	Yea
Swanson	—	Yea
Torres	—	Yea
Torrico	—	Yea
Villines	—	Yea
Adams	—	Nay
Ammiano	—	Yea
Anderson	—	Nay
Blumenfield	—	Yea
Bradford	—	Not Voting
Brownley	—	Yea
Buchanan	—	Not Voting
Hernandez	—	Yea
Huffman	—	Yea
Krekorian	—	Yea
Ma	—	Yea
Nestande	—	Nay
Nielsen	—	Nay
Smyth	—	Nay
Torlakson	—	Yea
Tran	—	Nay
Coto	—	Yea
Eng	—	Yea
Davis	—	Yea
Yamada	—	Yea
Garrick	—	Nay
Beth Gaines	—	Nay
Bill Berryhill	—	Nay
Bill Berryhill	—	Nay
Arambula, Joaquin	Democratic	Yea
Caballero, Anna M.	Democratic	Yea
Calderon, Lisa	Democratic	Yea
Jones, Brian W.	Republican	Yea
Niello, Roger W.	Republican	Nay
Strickland, Tony	Republican	Nay

Official roll call →

Assembly 3rd Reading AB260 Lieu By Corbett

September 08, 2009

Passed 23 Yea · 18 Nay

Party	Yea	Nay	Present	Not Voting
Unaffiliated	21	17	0	0
Democratic	2	0	0	0
Republican	0	1	0	0
Total	23	18	0	0
% of votes cast	56%	44%	0%	0%

How each member voted (41)

Member	Party	Vote
Yee	—	Yea
Wyland	—	Nay
Lowenthal	—	Yea
Negrete	—	Yea
Cedillo	—	Yea
Florez	—	Yea
Hancock	—	Yea
Runner	—	Nay
Cogdill	—	Nay
Harman	—	Nay
Huff	—	Nay
Kehoe	—	Yea
Benoit	—	Nay
Corbett	—	Yea
Correa	—	Nay
Ducheny	—	Nay
Dutton	—	Nay
Liu	—	Yea
McLeod	—	Yea
Pavley	—	Yea
Romero	—	Yea
Simitian	—	Yea
Walters	—	Nay
Wiggins	—	Yea
Wright	—	Nay
Aanestad	—	Nay
Alquist	—	Yea
Ashburn	—	Nay
Hollingsworth	—	Nay
Leno	—	Yea
Maldonado	—	Nay
Oropeza	—	Yea
Price	—	Yea
Steinberg	—	Yea
Wolk	—	Yea
Cox	—	Nay
DeSaulnier	—	Yea
Denham	—	Nay
Calderon, Lisa	Democratic	Yea
Padilla, Stephen C.	Democratic	Yea
Strickland, Tony	Republican	Nay

Official roll call →

Do pass.

August 27, 2009

Passed 8 Yea · 5 Nay

Party	Yea	Nay	Present	Not Voting
Unaffiliated	8	5	0	0
Total	8	5	0	0
% of votes cast	62%	38%	0%	0%

How each member voted (13)

Member	Party	Vote
Yee	—	Yea
Wyland	—	Nay
Runner	—	Nay
Hancock	—	Yea
Leno	—	Yea
Oropeza	—	Yea
Price	—	Yea
Walters	—	Nay
Kehoe	—	Yea
Wolk	—	Yea
Corbett	—	Yea
Cox	—	Nay
Denham	—	Nay

Official roll call →

Placed on Appropriations Suspense file.

August 17, 2009

Passed 13 Yea · 0 Nay

Party	Yea	Nay	Present	Not Voting
Unaffiliated	13	0	0	0
Total	13	0	0	0
% of votes cast	100%	0%	0%	0%

How each member voted (13)

Member	Party	Vote
Yee	—	Yea
Wyland	—	Yea
Runner	—	Yea
Hancock	—	Yea
Leno	—	Yea
Price	—	Yea
Walters	—	Yea
Kehoe	—	Yea
Oropeza	—	Yea
Wolk	—	Yea
Corbett	—	Yea
Cox	—	Yea
Denham	—	Yea

Official roll call →

Do pass as amended, and re-refer to the Committee on Appropriations.

July 14, 2009

Passed 3 Yea · 2 Nay

Party	Yea	Nay	Present	Not Voting
Unaffiliated	3	2	0	0
Total	3	2	0	0
% of votes cast	60%	40%	0%	0%

How each member voted (5)

Member	Party	Vote
Florez	—	Yea
Corbett	—	Yea
Harman	—	Nay
Leno	—	Yea
Walters	—	Nay

Official roll call →

Do pass, but re-refer to the Committee on Judiciary.

July 09, 2009

Passed 7 Yea · 3 Nay · 2 Other

Party	Yea	Nay	Present	Not Voting
Democratic	2	0	0	0
Unaffiliated	5	3	0	2
Total	7	3	0	2
% of votes cast	58%	25%	0%	17%

How each member voted (12)

Member	Party	Vote
Lowenthal	—	Yea
Runner	—	Nay
Cogdill	—	Nay
Correa	—	Yea
Kehoe	—	Yea
Liu	—	Yea
Price	—	Not Voting
Harman	—	Not Voting
Cox	—	Nay
Florez	—	Yea
Calderon, Lisa	Democratic	Yea
Padilla, Stephen C.	Democratic	Yea

Official roll call →

AB 260 LIEU Assembly Third Reading

June 01, 2009

Passed 59 Yea · 31 Nay · 2 Other

Party	Yea	Nay	Present	Not Voting
Unaffiliated	55	29	0	2
Democratic	3	0	0	0
Republican	1	2	0	0
Total	59	31	0	2
% of votes cast	64%	34%	0%	2%

How each member voted (92)

Member	Party	Vote
Hagman	—	Nay
Carter	—	Yea
Charles	—	Yea
Evans	—	Yea
De	—	Yea
La	—	Yea
Torre	—	Yea
De	—	Yea
Leon	—	Yea
Yamada	—	Yea
Fong	—	Yea
Bonnie	—	Yea
Lowenthal	—	Yea
V.	—	Yea
Manuel	—	Yea
Perez	—	Yea
John	—	Yea
A.	—	Yea
Perez	—	Yea
Portantino	—	Yea
Salas	—	Yea
Saldana	—	Yea
Chesbro	—	Yea
Cook	—	Nay
Coto	—	Yea
Bill	—	Nay
Tom	—	Nay
Feuer	—	Yea
Fuller	—	Nay
Furutani	—	Yea
Garrick	—	Nay
Fletcher	—	Nay
Audra	—	Nay
Bass	—	Yea
Duvall	—	Nay
Gilmore	—	Nay
Hall	—	Yea
Harkey	—	Nay
Hernandez	—	Yea
Hill	—	Yea
Huffman	—	Yea
Jeffries	—	Nay
Krekorian	—	Yea
Lieu	—	Yea
Mendoza	—	Yea
Miller	—	Nay
Monning	—	Yea
Nava	—	Yea
Price	—	Yea
Ruskin	—	Yea
Silva	—	Nay
Smyth	—	Nay
Solorio	—	Yea
Torlakson	—	Yea
Torres	—	Yea
Villines	—	Nay
Adams	—	Nay
Ammiano	—	Yea
Anderson	—	Nay
Beall	—	Yea
Blakeslee	—	Not Voting
Block	—	Not Voting
Blumenfield	—	Yea
Brownley	—	Yea
Buchanan	—	Yea
Hayashi	—	Yea
Huber	—	Yea
Knight	—	Nay
Logue	—	Nay
Ma	—	Yea
Nestande	—	Nay
Nielsen	—	Nay
Skinner	—	Yea
Swanson	—	Yea
Torrico	—	Yea
Tran	—	Nay
Conway	—	Nay
Emmerson	—	Nay
Eng	—	Yea
Davis	—	Yea
DeVore	—	Nay
Fuentes	—	Yea
Galgiani	—	Yea
Beth Gaines	—	Nay
Bill Berryhill	—	Nay
Bill Berryhill	—	Nay
Arambula, Joaquin	Democratic	Yea
Caballero, Anna M.	Democratic	Yea
Calderon, Lisa	Democratic	Yea
Jones, Brian W.	Republican	Yea
Niello, Roger W.	Republican	Nay
Strickland, Tony	Republican	Nay

Official roll call →

Do pass.

May 28, 2009

Passed 16 Yea · 6 Nay

Party	Yea	Nay	Present	Not Voting
Unaffiliated	15	5	0	0
Democratic	1	0	0	0
Republican	0	1	0	0
Total	16	6	0	0
% of votes cast	73%	27%	0%	0%

How each member voted (22)

Member	Party	Vote
Fuentes	—	Yea
Hall	—	Yea
Charles	—	Yea
Harkey	—	Nay
De	—	Yea
Leon	—	Yea
John	—	Yea
A.	—	Yea
Perez	—	Yea
Audra	—	Nay
Krekorian	—	Yea
Miller	—	Nay
Ammiano	—	Yea
Duvall	—	Nay
Skinner	—	Yea
Solorio	—	Yea
Torlakson	—	Yea
Nielsen	—	Nay
Price	—	Yea
Davis	—	Yea
Calderon, Lisa	Democratic	Yea
Strickland, Tony	Republican	Nay

Official roll call →

Do pass and be re-referred to the Committee on Appropriations.

April 14, 2009

Passed 7 Yea · 3 Nay

Party	Yea	Nay	Present	Not Voting
Republican	1	0	0	0
Unaffiliated	6	3	0	0
Total	7	3	0	0
% of votes cast	70%	30%	0%	0%

How each member voted (10)

Member	Party	Vote
Evans	—	Yea
Knight	—	Nay
Krekorian	—	Yea
Lieu	—	Yea
Monning	—	Yea
Brownley	—	Yea
Nielsen	—	Nay
Tran	—	Nay
Feuer	—	Yea
Jones, Brian W.	Republican	Yea

Official roll call →

Do pass and be re-referred to the Committee on Judiciary.

March 23, 2009

Passed 7 Yea · 3 Nay · 1 Other

Party	Yea	Nay	Present	Not Voting
Unaffiliated	6	3	0	1
Democratic	1	0	0	0
Total	7	3	0	1
% of votes cast	64%	27%	0%	9%

How each member voted (11)

Member	Party	Vote
Feuer	—	Yea
Gaines	—	Nay
Fuentes	—	Yea
Mendoza	—	Yea
Nava	—	Yea
Ruskin	—	Not Voting
Swanson	—	Yea
Anderson	—	Nay
Torres	—	Yea
Tran	—	Nay
Fong, Mike	Democratic	Yea

Official roll call →

Subjects

finance housing

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Frequently asked questions

What does AB 260 do?: (1) The Real Estate Law provides for the licensure and regulation of real estate brokers and salespersons by the Real Estate Commissioner. Existing law authorizes the commissioner to suspend or revoke the license of a real estate licensee or corporation, or to deny the issuance of a license to an applicant or corporation, for specified violations. This bill would further authorize the commissioner to suspend or revoke those licenses, or to deny issuance of those licenses, upon a violation of specified federal lending laws or regulations or upon the violation or failure to comply with specified provisions of state law relating to mortgages. (2) Existing law imposes certain limitations and prohibitions on licensed persons, as defined, with respect to the making of a covered loan, defined as a consumer loan in which the original principal balance of the loan does not exceed the most current conforming loan limit for a single-family first mortgage loan established by the Federal National Mortgage Association in the case of a mortgage or deed of trust, and as specified. Existing law does not regulate or define the term "higher-priced mortgage loan." This bill would establish "higher-priced mortgage loans," as defined, as a new category of regulated loans. The bill would, among other things, limit prepayment penalties and prohibit provisions for negative amortization. The bill would prohibit a licensed person, as defined, from making false, deceptive, or misleading statements or representations in connection with higher-priced mortgage loans. The bill would also, among other things, prohibit a mortgage broker, as defined, who arranges higher-priced mortgage loans with prepayment penalties from receiving a compensation that exceeds certain amounts. The bill would provide that a violation of the provisions regulating higher-priced mortgage loans by a licensed person is also a violation of the person's licensing law. The bill would authorize a licensing agency or the Attorney General to enforce the provisions regulating higher-priced mortgage loans. The bill would authorize civil penalties in an amount up to $10,000 against a licensed person who willfully and knowingly violates the provisions regulating higher-priced mortgage loans, and would nullify prepayment penalties or yield spread premiums that violate these provisions. The bill would also establish specified duties for mortgage brokers performing mortgage brokerage services for higher-priced mortgage loans. The bill's provisions would apply to higher-priced mortgage loans originated on or after July 1, 2010. (3) Existing law imposes certain limitations and prohibitions on specified licensees, including commercial banks, credit unions, finance lenders, and residential mortgage lenders, with respect to the making of consumer loans. This bill would provide that a violation of specified federal lending laws or regulations by those licensees is also a violation of the licensing law of the licensee. The bill would also provide that a mortgage broker, as defined, providing mortgage brokerage services, as defined, to a borrower is the fiduciary of the borrower, and any violation of the broker's fiduciary duties is a violation of the mortgage broker's licensing law and specified civil penalty and liability provisions. The bill would further provide that this fiduciary duty includes a requirement that the mortgage broker place the economic interest of the borrower ahead of his or her own economic interest. (4) Because a violation of the bill's provisions by certain licensees may be punished as crimes under the licensing law of the licensees, the bill would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.
Who sponsors AB 260?: AB 260 is sponsored by Lowenthal, Josh (Democratic), Bass, Carter, Chesbro, Jones, John A. Perez, Salas, Saldana, Coto, DeSaulnier, Eng, Florez, Furutani, Huffman, Krekorian, Leno, Lieu, Ma, Nava, Price, Ruskin, Swanson, Wolk, and Yamada.
What is the current status of AB 260?: This bill has been enacted into law. Introduced February 11, 2009. Enacted.
Where can I track AB 260?: Track AB 260 free on One Click Politics — get push/email alerts when it moves.

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At a glance

Identifier: AB 260
Jurisdiction: California
Session: 2009-2010 Regular Session
Type: Bill
Introduced: February 11, 2009
Status: Enacted
Prime sponsor: Lieu

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Prognosis

Odds of enactment

Summary

Bill Text

Action History

Sponsors

Sponsorship breakdown

Sponsors (1)

Co-sponsors (23)

Not signed on (98)

Votes

Subjects

Frequently asked questions

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