California 2011-2012 Regular Session Status: Enacted

SB 217 — Mortgage loan originators: licensure.

Last action — Chaptered by Secretary of State. Chapter 444, Statutes of 2011.

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

This bill has been enacted into law. Introduced February 09, 2011. Enacted.

Prognosis

Likely to advance 70% · 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.

  • 1 sponsor

    1 primary, 0 co-sponsors signed on.

  • Cleared a recorded vote

    Passed 9 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) Existing law provides for the licensure and regulation of mortgage loan originators, as defined, by the Commissioner of Corporations under the California Finance Lenders Law and the California Residential Mortgage Lending Act. Existing law requires a real estate license endorsement by the Real Estate Commissioner under the Real Estate Law for a real estate licensee to engage in the business of a mortgage loan originator. Existing law prohibits the issuance of a mortgage loan originator license or a license endorsement to act as a mortgage loan originator if the applicant for a license or license endorsement has been convicted of, or pled guilty or nolo contendere to, a felony during the 7-year period preceding the date of the application for licensing or at any time preceding the date of application if the felony involved an act of fraud, dishonesty, a breach of trust, or money laundering. This bill would provide that an expunged or pardoned felony conviction does not require denial of a license or license endorsement but would authorize the consideration of the underlying crime, facts, or circumstances of the expunged or pardoned felony conviction when determining whether to issue a license or license endorsement, as specified. (2) Existing law exempts from the provisions of the California Finance Lenders Law specified persons and entities, including any person doing business under any law of any state or of the United States relating to banks, trust companies, savings and loan associations, and insurance premium finance agencies. A willful violation of the California Finance Lenders Law is a crime. This bill would authorize a person exempt from the provisions of the California Finance Lenders Law to apply to the Commissioner of Corporations for an exempt company registration for the purpose of sponsoring one or more individuals required to be licensed as mortgage loan originators under the federal Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (SAFE Act) if specified requirements are met, including that the mortgage loan originator is covered under an exclusive written contract with, and originates mortgage loans solely on behalf of, the exempt person. The bill would require an exempt person to comply with all rules and orders that the commissioner deems necessary to ensure compliance with the federal SAFE Act and would require an exempt person to pay an annual registration fee established by the commissioner. The bill would authorize a licensed mortgage loan originator who is an insurance producer to originate loans on behalf of an exempt person or on behalf of a licensed finance lender that originates loans for an exempt person, as specified. Because a willful violation of these requirements under the California Finance Lenders Law would be a crime, this bill would impose a state-mandated local program. (3) 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

Action History

  1. Chaptered by Secretary of State. Chapter 444, Statutes of 2011.

  2. Approved by the Governor.

  3. Enrolled and presented to the Governor at 11:30 a.m.

  4. Assembly amendments concurred in. (Ayes 40. Noes 0. Page 2421.) Ordered to engrossing and enrolling.

  5. From committee: That the Assembly amendments be concurred in. (Ayes 6. Noes 0. Page 2433.)

  6. From committee: Be re-referred to Com. on B. & F.I. pursuant to Senate Rule 29.10. (Ayes 5. Noes 0. Page 2382.) Re-referred to Com. on B. & F.I.

  7. Re-referred to Com. on RLS. pursuant to Senate Rule 29.10.

  8. In Senate. Concurrence in Assembly amendments pending.

  9. Read third time. Passed. (Ayes 78. Noes 0. Page 3007.) Ordered to the Senate.

  10. Ordered to third reading.

  11. Read third time and amended. (Page 2772.)

  12. Ordered to third reading.

  13. Action rescinded whereby the bill was read a third time, passed, and ordered to Senate.

  14. Read third time. Passed. (Ayes 77. Noes 1. Page 2688.) Ordered to the Senate.

  15. Ordered to third reading.

  16. Read third time and amended. (Page 2582.)

  17. Read second time. Ordered to third reading.

  18. From committee: Do pass. (Ayes 17. Noes 0.) (August 17).

  19. From committee with author's amendments. Read second time and amended. Re-referred to Com. on APPR.

  20. Set, first hearing. Hearing canceled at the request of author.

  21. Read second time and amended. Re-referred to Com. on APPR.

  22. From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 11. Noes 0.) (June 27).

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

  24. Referred to Com. on B. & F.

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

  26. Read third time. Passed. (Ayes 39. Noes 0. Page 1067.) Ordered to the Assembly.

  27. Ordered to special consent calendar.

  28. Read second time. Ordered to third reading.

  29. From committee: Do pass. (Ayes 5. Noes 0. Page 950.) (May 10).

  30. Set for hearing May 10.

  31. From committee: Do pass and re-refer to Com. on JUD. with recommendation: To consent calendar. (Ayes 7. Noes 0. Page 579.) (April 6). Re-referred to Com. on JUD.

  32. Set for hearing April 6.

  33. Referred to Coms. on B. & F.I. and JUD.

  34. From printer. May be acted upon on or after March 12.

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

Sponsors

  • Vargas · Primary

Sponsorship breakdown

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1 sponsors · 0 co-sponsors · 121 not signed on

Sponsors (1)

  • Vargas

Co-sponsors (0)

None.

Not signed on (121)

121 members have not signed on to this bill.

Show all 121 →

"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 Supp 1 SB217 Vargas Concurrence

Passed 40 Yea · 0 Nay
Party YeaNayPresentNot Voting
Unaffiliated 37000
Republican 1000
Democratic 2000
Total 40000
% of votes cast 100%0%0%0%
How each member voted (40)
Member Party Vote
Yee — Yea
Hancock — Yea
Evans — Yea
Wyland — Yea
Runner — Yea
Lowenthal — Yea
Cannella — Yea
De León — Yea
Harman — Yea
Negrete McLeod — Yea
Hernandez — Yea
Rubio — Yea
Kehoe — Yea
Alquist — Yea
Blakeslee — Yea
Corbett — Yea
Correa — Yea
Dutton — Yea
Leno — Yea
Lieu — Yea
Pavley — Yea
Price — Yea
Simitian — Yea
Steinberg — Yea
Vargas — Yea
Walters — Yea
Wolk — Yea
Wright — Yea
Anderson — Yea
Huff — Yea
Liu — Yea
Emmerson — Yea
DeSaulnier — Yea
Fuller — Yea
Beth Gaines — Yea
Bill Berryhill — Yea
La Malfa — Yea
Calderon, Lisa Democratic Yea
Padilla, Stephen C. Democratic Yea
Strickland, Tony Republican Yea

Official roll call →

SB 217 Vargas Senate Third Reading By ENG

Passed 78 Yea · 0 Nay · 2 Other
Party YeaNayPresentNot Voting
Unaffiliated 75002
Democratic 1000
Republican 2000
Total 78002
% of votes cast 98%0%0%3%
How each member voted (80)
Member Party Vote
Gorell — Not Voting
Butler — Yea
Carter — Yea
Hagman — Yea
Hill — Yea
Huber — Yea
John A. Pérez — Yea
Wagner — Yea
Mitchell — Yea
Yamada — Yea
Fuentes — Yea
Atkins — Yea
Furutani — Not Voting
Campos — Yea
Gatto — Yea
Gordon — Yea
Portantino — Yea
Halderman — Yea
Hall — Yea
Cedillo — Yea
Allen — Yea
Hayashi — Yea
Hueso — Yea
Bonilla — Yea
Jeffries — Yea
Fong — Yea
Fletcher — Yea
Chesbro — Yea
Knight — Yea
Conway — Yea
Logue — Yea
Mendoza — Yea
Alejo — Yea
Ammiano — Yea
Beall — Yea
Cook — Yea
Davis — Yea
Dickinson — Yea
Donnelly — Yea
Miller — Yea
Monning — Yea
Morrell — Yea
Nestande — Yea
Norby — Yea
Olsen — Yea
Silva — Yea
Skinner — Yea
Solorio — Yea
Swanson — Yea
Valadao — Yea
Wieckowski — Yea
Achadjian — Yea
Block — Yea
Blumenfield — Yea
Bradford — Yea
Brownley — Yea
Buchanan — Yea
Harkey — Yea
Huffman — Yea
Lara — Yea
Ma — Yea
Mansoor — Yea
Nielsen — Yea
Pan — Yea
Perea — Yea
Smyth — Yea
Torres — Yea
Williams — Yea
Eng — Yea
Feuer — Yea
Galgiani — Yea
Garrick — Yea
Beth Gaines — Yea
Bill Berryhill — Yea
Bonnie Lowenthal — Yea
Roger Hernández — Yea
V. Manuel Pérez — Yea
Calderon, Lisa Democratic Yea
Grove, Shannon Republican Yea
Jones, Brian W. Republican Yea

Official roll call →

SB 217 Vargas Senate Third Reading By ENG

Passed 77 Yea · 1 Nay · 2 Other
Party YeaNayPresentNot Voting
Unaffiliated 74102
Democratic 1000
Republican 2000
Total 77102
% of votes cast 96%1%0%3%
How each member voted (80)
Member Party Vote
Hagman — Yea
Butler — Yea
Carter — Yea
Yamada — Yea
John A. Pérez — Yea
Mitchell — Yea
Feuer — Yea
Fuentes — Yea
Atkins — Yea
Campos — Yea
Galgiani — Yea
Garrick — Yea
Gordon — Yea
Cedillo — Yea
Portantino — Yea
Halderman — Yea
Chesbro — Yea
Allen — Yea
Hall — Yea
Harkey — Yea
Bonilla — Yea
Hill — Yea
Fong — Yea
Fletcher — Yea
Conway — Yea
Huber — Yea
Ammiano — Yea
Beall — Yea
Cook — Yea
Davis — Yea
Dickinson — Yea
Huffman — Yea
Jeffries — Yea
Lara — Yea
Logue — Yea
Mendoza — Yea
Miller — Yea
Morrell — Yea
Nestande — Yea
Norby — Yea
Olsen — Yea
Perea — Yea
Skinner — Yea
Smyth — Yea
Swanson — Yea
Torres — Yea
Wagner — Yea
Wieckowski — Yea
Gorell — Not Voting
Donnelly — Nay
Achadjian — Yea
Alejo — Yea
Block — Yea
Blumenfield — Yea
Bradford — Yea
Brownley — Yea
Buchanan — Yea
Hayashi — Yea
Hueso — Yea
Knight — Yea
Ma — Yea
Mansoor — Not Voting
Monning — Yea
Nielsen — Yea
Pan — Yea
Silva — Yea
Solorio — Yea
Valadao — Yea
Williams — Yea
Eng — Yea
Furutani — Yea
Gatto — Yea
Beth Gaines — Yea
Bill Berryhill — Yea
Bonnie Lowenthal — Yea
Roger Hernández — Yea
V. Manuel Pérez — Yea
Calderon, Lisa Democratic Yea
Grove, Shannon Republican Yea
Jones, Brian W. Republican Yea

Official roll call →

Do pass.

Passed 17 Yea · 0 Nay
Party YeaNayPresentNot Voting
Democratic 1000
Unaffiliated 16000
Total 17000
% of votes cast 100%0%0%0%
How each member voted (17)
Member Party Vote
Mitchell — Yea
Hall — Yea
Harkey — Yea
Campos — Yea
Hill — Yea
Davis — Yea
Donnelly — Yea
Solorio — Yea
Wagner — Yea
Blumenfield — Yea
Bradford — Yea
Lara — Yea
Nielsen — Yea
Norby — Yea
Fuentes — Yea
Gatto — Yea
Calderon, Lisa Democratic Yea

Official roll call →

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

Passed 11 Yea · 0 Nay · 1 Other
Party YeaNayPresentNot Voting
Unaffiliated 11000
Democratic 0001
Total 11001
% of votes cast 92%0%0%8%
How each member voted (12)
Member Party Vote
Eng — Yea
Fletcher — Yea
Morrell — Yea
Perea — Yea
Torres — Yea
Achadjian — Yea
Harkey — Yea
Lara — Yea
Fuentes — Yea
Gatto — Yea
Roger Hernández — Yea
Calderon, Lisa Democratic Not Voting

Official roll call →

Special Consent #3

Passed 39 Yea · 0 Nay · 1 Other
Party YeaNayPresentNot Voting
Unaffiliated 36001
Republican 1000
Democratic 2000
Total 39001
% of votes cast 98%0%0%3%
How each member voted (40)
Member Party Vote
Yee — Yea
Hancock — Yea
Wyland — Yea
Fuller — Yea
Runner — Yea
Lowenthal — Yea
De León — Yea
Negrete McLeod — Yea
Harman — Not Voting
Rubio — Yea
Hernandez — Yea
Anderson — Yea
Cannella — Yea
Corbett — Yea
Dutton — Yea
Leno — Yea
Lieu — Yea
Pavley — Yea
Price — Yea
Steinberg — Yea
Walters — Yea
Wright — Yea
Alquist — Yea
Blakeslee — Yea
Huff — Yea
Kehoe — Yea
Liu — Yea
Simitian — Yea
Vargas — Yea
Wolk — Yea
Emmerson — Yea
Correa — Yea
Evans — Yea
DeSaulnier — Yea
Beth Gaines — Yea
Bill Berryhill — Yea
La Malfa — Yea
Calderon, Lisa Democratic Yea
Padilla, Stephen C. Democratic Yea
Strickland, Tony Republican Yea

Official roll call →

Do pass.

Passed 5 Yea · 0 Nay
Party YeaNayPresentNot Voting
Unaffiliated 5000
Total 5000
% of votes cast 100%0%0%0%
How each member voted (5)
Member Party Vote
Harman — Yea
Corbett — Yea
Blakeslee — Yea
Leno — Yea
Evans — Yea

Official roll call →

Subjects

finance housing labor
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Frequently asked questions

What does SB 217 do?
(1) Existing law provides for the licensure and regulation of mortgage loan originators, as defined, by the Commissioner of Corporations under the California Finance Lenders Law and the California Residential Mortgage Lending Act. Existing law requires a real estate license endorsement by the Real Estate Commissioner under the Real Estate Law for a real estate licensee to engage in the business of a mortgage loan originator. Existing law prohibits the issuance of a mortgage loan originator license or a license endorsement to act as a mortgage loan originator if the applicant for a license or license endorsement has been convicted of, or pled guilty or nolo contendere to, a felony during the 7-year period preceding the date of the application for licensing or at any time preceding the date of application if the felony involved an act of fraud, dishonesty, a breach of trust, or money laundering. This bill would provide that an expunged or pardoned felony conviction does not require denial of a license or license endorsement but would authorize the consideration of the underlying crime, facts, or circumstances of the expunged or pardoned felony conviction when determining whether to issue a license or license endorsement, as specified. (2) Existing law exempts from the provisions of the California Finance Lenders Law specified persons and entities, including any person doing business under any law of any state or of the United States relating to banks, trust companies, savings and loan associations, and insurance premium finance agencies. A willful violation of the California Finance Lenders Law is a crime. This bill would authorize a person exempt from the provisions of the California Finance Lenders Law to apply to the Commissioner of Corporations for an exempt company registration for the purpose of sponsoring one or more individuals required to be licensed as mortgage loan originators under the federal Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (SAFE Act) if specified requirements are met, including that the mortgage loan originator is covered under an exclusive written contract with, and originates mortgage loans solely on behalf of, the exempt person. The bill would require an exempt person to comply with all rules and orders that the commissioner deems necessary to ensure compliance with the federal SAFE Act and would require an exempt person to pay an annual registration fee established by the commissioner. The bill would authorize a licensed mortgage loan originator who is an insurance producer to originate loans on behalf of an exempt person or on behalf of a licensed finance lender that originates loans for an exempt person, as specified. Because a willful violation of these requirements under the California Finance Lenders Law would be a crime, this bill would impose a state-mandated local program. (3) 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 SB 217?
SB 217 is sponsored by Vargas.
What is the current status of SB 217?
This bill has been enacted into law. Introduced February 09, 2011. Enacted.
Where can I track SB 217?
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