Santa Maria Loans - More Information regarding CA legislation affecting Realtors
As a follow up to my last blog "Santa Maria Loans", I found on the California Association of Realtors website the following information. According to the website www.leginfo.ca.gov, not only is the legislation new it is strict, making it safer for the consumer who wants to get a loan to buy a house.
According to the article, a person buying a Real Estate Owned (REO) house can select the escrow and title company. This went into effect as of October 11, 2009. It is referred to as the "Buyer's Choice Act". A Real Estate Owned (REO) lender that violates this act can be held liable for as much as three times the charges the buyer incurs. If the seller's agent violates this act then they could be liable as well and face disciplinary action.
The other item that I wanted to highlight had to do with loan originators. According to the new legislation, they are going to have to be regulated. That means that they will have to attend courses, take tests and get licensed to do loans. This portion of the legislation will go into effect in December of 2010. This is a contrast to what the loan industry used to be like. Anyone who wanted to do loans could do them. No licensing whatsoever was required. The amount of people doing loans became tremendous as well as the amount of people who got into real estate.
It is my hope, through these new laws, that the number of people doing loans and real estate will stabilize and decrease to a number that allows those who have decided to do this full time and for the long haul, will be able to make a decent living at it.
If you have any questions about buying a home or a loan in Santa Maria, CA or on the Central Coast or other real estate related questions please contact me by visiting my website: http://geneperez.net
Buying or selling property in Santa Maria CA, or on the Central Coast, my goal is to provide you with resources you need. I can also help in getting the financing for your home. If you have any suggestions or questions in how I can provide more or better information please let me know. Gene Perez DRE 01321588
Gene - While I agree that this new legislation is definitely a step in the right direction, I wonder how much it will truly help the consumer. As a DRE licensed LO for my entire mortgage career, I welcome the licensing of all mortgage LO's. Hopefully, it will force the banks to only put qualified and licensed LO's in their mortgage order taking positions instead of the minimum wage clerks currently holding those jobs.
However, I am very skeptical about the legislation prohibiting REO sellers to demand that all buyers use the seller banks services. I have yet seen any of my buyers Realtors try and do this for fear that our buyers offer will be rejected over one of the other dozen offers that didn't choose to select their own services. All this does is make it easier for the bank sellers to reject more offers, i.e. any buyer not agreeing to use the sellers services. JMHO
the banks are expemt from that alot of the specfics of that law.Which is not fair it really applies to mortgage brokers and bankers but federally insured banks.
As for the second half I could not be more happier because now if they do deny the buyer his choice not only is the REO company liable but so is the agent. its real easy to get that documentation and insinutation in email form and its all about presentaion and how it looks first case that this happens it will not be happening again.
I am so tired of dealing with out of town escrow companies we have had some good experiences and some so freaking horrible because they do not care about customer service. They know I will not be a repeat client they know that we are using them because we are forced. The fees are usually higher and service usually sucks.
so I love it that it.