California 2009-2010 Regular Session Status: To Executive

SB 94 — Mortgage loans.

Last action — Chaptered by Secretary of State. Chapter 630, Statutes of 2009.

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  1. ✓
    Introduced
  2. ✓
    In Committee
  3. ✓
    Passed Senate
  4. ✓
    Passed Assembly
  5. 5
    To Executive
  6. 6
    Enacted

This bill died with 2009-2010 Regular Session. It reached “To Executive” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.

This bill is no longer active — its legislative session has ended, so there is no live prognosis. It would have to be reintroduced in the current session to move again.

Summary

(1) The Real Estate Law provides for the regulation and licensure of real estate brokers and real estate salespersons by the Real Estate Commissioner. The California Finance Lenders Law provides for the regulation and licensure of finance lenders and brokers by the Commissioner of Corporations. The California Residential Mortgage Lending Act provides for the regulation and licensure of residential mortgage lenders and servicers by the Commissioner of Corporations. The Banking Law provides for the regulation of state commercial banks by the Commissioner of Financial Institutions. The California Credit Union Law provides for the regulation of state credit unions by the Commissioner of Financial Institutions. A willful violation of specified provisions of those acts is a crime. This bill would, until January 1, 2013, prohibit any person, including a real estate licensee, who negotiates, attempts to negotiate, arranges, attempts to arrange, or otherwise offers to perform residential mortgage loan modifications or other forms of mortgage loan forbearance, as specified, for a fee or other compensation paid by a borrower, from demanding or receiving any preperformance compensation, as specified, requiring any security as collateral for final compensation, or taking a power of attorney from a borrower, and would make a violation of that prohibition a misdemeanor or subject to specified fines. By creating a new crime, the bill would impose a state-mandated local program. This bill would also provide that these provisions do not apply to actions taken by a person who offers loan modification or other loan forbearance services for a loan owned or serviced by that person, including, but not limited to, collecting principal, interest, or other charges under the terms of a loan, before the loan is modified, including charges to establish a new payment schedule for a nondelinquent loan. This bill would also require any person, including a real estate licensee, who negotiates, attempts to negotiate, arranges, attempts to arrange, or otherwise offers to perform residential mortgage loan modifications or other forms of mortgage loan forbearance, as specified, for a fee or other compensation paid by a borrower, to provide a specified 14-point bold type statement regarding loan modification fees. The bill would make a violation of that prohibition a misdemeanor or subject to specified fines, thereby creating a new crime and imposing a state-mandated local program. The bill would also provide that a real estate licensee who fails to comply with specified provisions related to mortgages, including the loan modification provisions, would be subject to disciplinary action by the Real Estate Commissioner, and would provide that a violation of the above by an attorney may also subject him or her to disciplinary action. The bill would add to the California Finance Lenders Law a prohibition on making a materially false or misleading statement or representation to a borrower about the terms or conditions of that borrower's loan, when making or brokering a loan. Because a willful violation of these provisions by certain licensees may be punished as crimes under their respective licensing laws, this bill would impose a state-mandated local program. (2) The Real Estate Law provides for the regulation and licensure of real estate brokers and salespersons by the Real Estate Commissioner. As used in the Real Estate Law, the term "advance fee" is defined as a fee that is claimed, demanded, charged, received, collected, or contracted from a principal for a listing, advertisement, or offer to sell or lease property, and as specified. This bill would redefine the term "advance fee" to mean a fee, regardless of the form, that is claimed, demanded, charged, received, or collected by a licensee from a principal before fully completing each and every service the licensee contracted to perform, or represented would be performed, as specified. Existing law authorizes the commissioner to require that materials used in obtaining advance fee agreements, as defined, be submitted to him or her at least 10 calendar days before the materials are used and makes it a misdemeanor, punishable by a fine not exceeding $1,000, or imprisonment in the county jail not exceeding 6 months, or both, to use any agreement that the commissioner has ordered not to be used. This bill would increase the maximum fine for using any advance fee agreement that the commissioner has ordered not to be used from $1,000 to $2,500. (3) Existing law provides that certain persons are exempt from regulation under certain provisions of the Real Estate Law dealing with real estate loans. This bill would further exempt from those provisions specified organizations that have been approved by the United States Department of Housing and Urban Development to provide counseling services, when those services are provided at no cost and in connection with residential mortgage loan modifications. (4) Existing law defines a foreclosure consultant as a person who offers, for compensation, to perform specified services for a homeowner relating to a foreclosure sale, and imposes regulations upon foreclosure consultants when servicing a foreclosure sale, as specified. Existing law excludes specified persons from the definition of a foreclosure consultant, including a person licensed under the Real Estate Law when making a direct loan or engaging in specified acts, and a person licensed to make loans as a finance lender, subject to the authority of the Commissioner of Corporations to terminate this exclusion, as specified. This bill would instead specify that a real estate licensee and a finance lender are excluded from the definition of a foreclosure consultant when acting under the authority of that person's license, and would delete the commissioner's authority to terminate the finance lender's exclusion. The bill would also delete obsolete statutory references from those provisions. (5) 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.(6) This bill would declare that it is to take effect immediately as an urgency statute.

Bill Text

Action History

  1. Chaptered by Secretary of State. Chapter 630, Statutes of 2009.

  2. Approved by Governor.

  3. Enrolled. To Governor at 10:30 a.m.

  4. Senate concurs in Assembly amendments. (Ayes 36. Noes 4. Page 2285.) To enrollment.

  5. Urgency clause adopted.

  6. In Senate. To unfinished business.

  7. Read third time. Urgency clause adopted. Passed. (Ayes 62. Noes 10. Page 2941.) To Senate.

  8. Read third time. Amended. (Page 2824.) To third reading.

  9. Read second time. To third reading.

  10. (Heard in committee on August 19.)

  11. From committee: Do pass. (Ayes 13. Noes 3.)

  12. From committee with author's amendments. Read second time. Amended. Re-referred to Com. on APPR.

  13. Read second time. Amended. Re-referred to Com. on APPR.

  14. (Heard in committee on July 9.)

  15. From committee: Do pass as amended, but first amend, and re-refer to Com. on APPR. (Ayes 8. Noes 2.)

  16. (Heard in committee on July 6.)

  17. From committee: Do pass, but first be re-referred to Com. on JUD. (Ayes 9. Noes 1.) Re-referred to Com. on JUD.

  18. From committee with author's amendments. Read second time. Amended. Re-referred to Com. on B. & F.

  19. To Coms. on B. & F. and JUD.

  20. In Assembly. Read first time. Held at Desk.

  21. Read third time. Passed. (Ayes 21. Noes 14. Page 973.) To Assembly.

  22. Read second time. To third reading.

  23. From committee: Be placed on second reading file pursuant to Senate Rule 28.8.

  24. Set for hearing May 18.

  25. Read second time. Amended. Re-referred to Com. on APPR.

  26. From committee: Do pass as amended, but first amend, and re-refer to Com. on APPR. (Ayes 3. Noes 2. Page 586.)

  27. Set for hearing April 21.

  28. Re-referred to Com. on JUD.

  29. From committee with author's amendments. Read second time. Amended. Re-referred to Com. on RLS.

  30. From committee: Do pass, but first be re-referred to Com. on RLS. (Ayes 7. Noes 2. Page 396.) Re-referred to Com. on RLS.

  31. From committee with author's amendments. Read second time. Amended. Re-referred to Com. on B., F. & I.

  32. Set for hearing April 1.

  33. From committee with author's amendments. Read second time. Amended. Re-referred to Com. on B., F. & I.

  34. To Coms. on B., F. & I. and RLS.

  35. From print. May be acted upon on or after February 22.

  36. Introduced. Read first time. To Com. on RLS. for assignment. To print.

Sponsors

  • Calderon · Primary
  • Corbett · Cosponsor
  • Correa · Cosponsor
  • Florez · Cosponsor
  • Lieu · Cosponsor
  • Steinberg · Cosponsor

Sponsorship breakdown

Export CSV (upgrade) →

1 sponsors · 5 co-sponsors · 116 not signed on · 1 voted No

Sponsors (1)

  • Calderon

Co-sponsors (5)

  • Corbett
  • Correa
  • Florez
  • Lieu
  • Steinberg

Not signed on (116)

116 members have not signed on to this bill.

Show all 116 →

"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

Unfinished Business SB94 Calderon Urgency Clause

Passed 37 Yea · 4 Nay
Party YeaNayPresentNot Voting
Unaffiliated 34400
Democratic 2000
Republican 1000
Total 37400
% of votes cast 90%10%0%0%
How each member voted (41)
Member Party Vote
Cox — Yea
DeSaulnier — Yea
Denham — Yea
Florez — Yea
Yee — Yea
Cedillo — Yea
Wyland — Yea
Hancock — Yea
Cogdill — Yea
Huff — Yea
Leno — Yea
McLeod — Yea
Oropeza — Yea
Lowenthal — Yea
Negrete — Yea
Runner — Yea
Corbett — Yea
Alquist — Yea
Benoit — Yea
Ducheny — Yea
Dutton — Yea
Pavley — Yea
Price — Yea
Romero — Yea
Steinberg — Yea
Wiggins — Yea
Wolk — Yea
Hollingsworth — Nay
Aanestad — Nay
Ashburn — Nay
Harman — Yea
Kehoe — Yea
Liu — Yea
Maldonado — Yea
Simitian — Yea
Walters — Nay
Wright — Yea
Correa — Yea
Calderon, Lisa Democratic Yea
Padilla, Stephen C. Democratic Yea
Strickland, Tony Republican Yea

Official roll call →

SB 94 Calderon Third Reading Urgency By LIEU

Passed 73 Yea · 11 Nay · 7 Other
Party YeaNayPresentNot Voting
Unaffiliated 681007
Democratic 3000
Republican 2100
Total 731107
% of votes cast 80%12%0%8%
How each member voted (91)
Member Party Vote
Carter — Yea
Evans — Yea
Fuentes — Yea
Furutani — Yea
Galgiani — Yea
Gilmore — Yea
Chesbro — Yea
Bill — Yea
Tom — Yea
Hagman — Yea
Charles — Yea
Hayashi — Yea
Hill — Yea
De — Yea
La — Yea
Torre — Yea
De — Yea
Leon — Yea
Fletcher — Yea
Fong — Yea
Ammiano — Yea
Beall — Yea
Conway — Yea
Yamada — Yea
Bonnie — Yea
Lowenthal — Yea
V. — Yea
Manuel — Yea
Perez — Yea
John — Yea
A. — Yea
Perez — Yea
Portantino — Yea
Salas — Yea
Saldana — Yea
Cook — Not Voting
Audra — Nay
Hall — Not Voting
Coto — Not Voting
Huffman — Yea
Duvall — Not Voting
Jeffries — Yea
Knight — Nay
Anderson — Nay
Bass — Yea
Blakeslee — Nay
Krekorian — Yea
Logue — Not Voting
Mendoza — Yea
Miller — Nay
Nava — Yea
Nestande — Nay
Ruskin — Yea
Silva — Yea
Skinner — Yea
Smyth — Nay
Swanson — Yea
Torlakson — Yea
Torres — Yea
Torrico — Yea
Tran — Nay
Adams — Nay
Block — Yea
Blumenfield — Yea
Brownley — Yea
Buchanan — Not Voting
Harkey — Yea
Hernandez — Yea
Huber — Yea
Lieu — Yea
Ma — Yea
Monning — Yea
Nielsen — Yea
Solorio — Yea
Villines — Yea
Emmerson — Not Voting
Eng — Yea
Feuer — Yea
Davis — Yea
DeVore — Nay
Fuller — Yea
Garrick — Yea
Beth Gaines — Yea
Bill Berryhill — Yea
Bill Berryhill — Yea
Arambula, Joaquin Democratic Yea
Caballero, Anna M. Democratic Yea
Calderon, Lisa Democratic Yea
Jones, Brian W. Republican Yea
Niello, Roger W. Republican Yea
Strickland, Tony Republican Nay

Official roll call →

Do pass.

Passed 17 Yea · 4 Nay · 1 Other
Party YeaNayPresentNot Voting
Unaffiliated 16301
Democratic 1000
Republican 0100
Total 17401
% of votes cast 77%18%0%5%
How each member voted (22)
Member Party Vote
Hall — Yea
Charles — Yea
De — Yea
Leon — Yea
John — Yea
A. — Yea
Perez — Yea
Audra — Nay
Fuentes — Yea
Harkey — Yea
Hill — Yea
Ammiano — Yea
Duvall — Not Voting
Torlakson — Yea
Miller — Nay
Skinner — Yea
Solorio — Yea
Conway — Nay
Coto — Yea
Davis — Yea
Calderon, Lisa Democratic Yea
Strickland, Tony Republican Nay

Official roll call →

Senate 3rd Reading SB94 Calderon

Passed 22 Yea · 14 Nay · 4 Other
Party YeaNayPresentNot Voting
Unaffiliated 191304
Democratic 3000
Republican 0100
Total 221404
% of votes cast 55%35%0%10%
How each member voted (40)
Member Party Vote
Yee — Yea
Hancock — Yea
Leno — Yea
Liu — Yea
Negrete — Yea
Corbett — Yea
Ducheny — Yea
Alquist — Yea
Pavley — Yea
Wolk — Yea
Wright — Yea
Runner — Nay
Cedillo — Not Voting
Cogdill — Nay
Harman — Not Voting
Hollingsworth — Nay
Huff — Nay
Benoit — Nay
Cox — Nay
Dutton — Nay
Oropeza — Not Voting
Romero — Not Voting
Walters — Nay
Aanestad — Nay
Ashburn — Nay
Kehoe — Yea
Maldonado — Nay
McLeod — Yea
Simitian — Yea
Steinberg — Yea
Wiggins — Yea
Wyland — Nay
Correa — Yea
DeSaulnier — Yea
Denham — Nay
Florez — Yea
Calderon, Lisa Democratic Yea
Lowenthal, Josh Democratic Yea
Padilla, Stephen C. Democratic Yea
Strickland, Tony Republican Nay

Official roll call →

Subjects

finance housing
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Frequently asked questions

What does SB 94 do?
(1) The Real Estate Law provides for the regulation and licensure of real estate brokers and real estate salespersons by the Real Estate Commissioner. The California Finance Lenders Law provides for the regulation and licensure of finance lenders and brokers by the Commissioner of Corporations. The California Residential Mortgage Lending Act provides for the regulation and licensure of residential mortgage lenders and servicers by the Commissioner of Corporations. The Banking Law provides for the regulation of state commercial banks by the Commissioner of Financial Institutions. The California Credit Union Law provides for the regulation of state credit unions by the Commissioner of Financial Institutions. A willful violation of specified provisions of those acts is a crime. This bill would, until January 1, 2013, prohibit any person, including a real estate licensee, who negotiates, attempts to negotiate, arranges, attempts to arrange, or otherwise offers to perform residential mortgage loan modifications or other forms of mortgage loan forbearance, as specified, for a fee or other compensation paid by a borrower, from demanding or receiving any preperformance compensation, as specified, requiring any security as collateral for final compensation, or taking a power of attorney from a borrower, and would make a violation of that prohibition a misdemeanor or subject to specified fines. By creating a new crime, the bill would impose a state-mandated local program. This bill would also provide that these provisions do not apply to actions taken by a person who offers loan modification or other loan forbearance services for a loan owned or serviced by that person, including, but not limited to, collecting principal, interest, or other charges under the terms of a loan, before the loan is modified, including charges to establish a new payment schedule for a nondelinquent loan. This bill would also require any person, including a real estate licensee, who negotiates, attempts to negotiate, arranges, attempts to arrange, or otherwise offers to perform residential mortgage loan modifications or other forms of mortgage loan forbearance, as specified, for a fee or other compensation paid by a borrower, to provide a specified 14-point bold type statement regarding loan modification fees. The bill would make a violation of that prohibition a misdemeanor or subject to specified fines, thereby creating a new crime and imposing a state-mandated local program. The bill would also provide that a real estate licensee who fails to comply with specified provisions related to mortgages, including the loan modification provisions, would be subject to disciplinary action by the Real Estate Commissioner, and would provide that a violation of the above by an attorney may also subject him or her to disciplinary action. The bill would add to the California Finance Lenders Law a prohibition on making a materially false or misleading statement or representation to a borrower about the terms or conditions of that borrower's loan, when making or brokering a loan. Because a willful violation of these provisions by certain licensees may be punished as crimes under their respective licensing laws, this bill would impose a state-mandated local program. (2) The Real Estate Law provides for the regulation and licensure of real estate brokers and salespersons by the Real Estate Commissioner. As used in the Real Estate Law, the term "advance fee" is defined as a fee that is claimed, demanded, charged, received, collected, or contracted from a principal for a listing, advertisement, or offer to sell or lease property, and as specified. This bill would redefine the term "advance fee" to mean a fee, regardless of the form, that is claimed, demanded, charged, received, or collected by a licensee from a principal before fully completing each and every service the licensee contracted to perform, or represented would be performed, as specified. Existing law authorizes the commissioner to require that materials used in obtaining advance fee agreements, as defined, be submitted to him or her at least 10 calendar days before the materials are used and makes it a misdemeanor, punishable by a fine not exceeding $1,000, or imprisonment in the county jail not exceeding 6 months, or both, to use any agreement that the commissioner has ordered not to be used. This bill would increase the maximum fine for using any advance fee agreement that the commissioner has ordered not to be used from $1,000 to $2,500. (3) Existing law provides that certain persons are exempt from regulation under certain provisions of the Real Estate Law dealing with real estate loans. This bill would further exempt from those provisions specified organizations that have been approved by the United States Department of Housing and Urban Development to provide counseling services, when those services are provided at no cost and in connection with residential mortgage loan modifications. (4) Existing law defines a foreclosure consultant as a person who offers, for compensation, to perform specified services for a homeowner relating to a foreclosure sale, and imposes regulations upon foreclosure consultants when servicing a foreclosure sale, as specified. Existing law excludes specified persons from the definition of a foreclosure consultant, including a person licensed under the Real Estate Law when making a direct loan or engaging in specified acts, and a person licensed to make loans as a finance lender, subject to the authority of the Commissioner of Corporations to terminate this exclusion, as specified. This bill would instead specify that a real estate licensee and a finance lender are excluded from the definition of a foreclosure consultant when acting under the authority of that person's license, and would delete the commissioner's authority to terminate the finance lender's exclusion. The bill would also delete obsolete statutory references from those provisions. (5) 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.(6) This bill would declare that it is to take effect immediately as an urgency statute.
Who sponsors SB 94?
SB 94 is sponsored by Calderon, Corbett, Correa, Florez, Lieu, and Steinberg.
What is the current status of SB 94?
This bill died with 2009-2010 Regular Session. It reached “To Executive” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
Where can I track SB 94?
Track SB 94 free on One Click Politics — get push/email alerts when it moves.

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