On Sep. 11, CAL LEG bill, IB awareness of borrower intent to defraud.
CAL LEG passed Assembly bill AB 3108 to update the CAL Consumer caution and home ownership counseling notice provided to mortgage borrowers in the State of California.
And to place liability on mortgage broker/originator aware of loan intended to defraud.
Add clause to the consumer notice, persons originating covered loans (CAL FIN 1.7-1-4970) must avoid or attempt to avoid committing mortgage fraud per Penal Code 532f.
Fraud if he/she/they instruct or deliberately cause borrower to sign loan documents while aware the borrower intends to use mortgage loan proceeds for another purpose.
Legislative History
On Feb. 16, 2024, bill introduced in Assembly; on May 22, 2024, bill passed Assembly.
On May 23, 2024, bill introduced in Senate; on Aug. 28, 2024, bill passed the Senate.
On Aug. 29, 2024, bill amendments concurred; on Sep. 11, bill delivered to governor.
Effectiveness
No effective date specified; generally effective Jan. 1 after enactment, on Jan. 1, 2025.
