Pennsylvania Mortgage Licensing - Surety Bond Requirements

SURETY BOND INFORMATION REGARDING THE MORTGAGE LICENSING ACT

On August 5, 2009, Governor Edward G. Rendell signed into law as Act 31 of 2009, House Bill 1654 (P.N. 2448), which amends Pennsylvania’s existing mortgage licensing law, 7 Pa.C.S. Chapter 61, now titled the Mortgage Licensing Act (“MLA”), in order to implement the federal Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (the “SAFE Act”), 12 U.S.C. § 5101 et seq.  Act 31 became effective immediately.  The amendments contained in Act 31 implement the SAFE Act by merging its requirements into the MLA.

This letter provides the mortgage industry with further details regarding the surety bond requirements for mortgage originators and mortgage companies.  Licensees will have until November 30, 2009 to provide the department with proof of surety bond coverage as prescribed by the MLA.

Surety Bond Requirement:

The MLA requires mortgage company licensees and applicants (including consumer discount companies and affiliates of banks and credit unions engaged in the mortgage loan business) to maintain a surety bond in an amount that reflects the volume of mortgage loans originated by the mortgage originators employed by the business.  The amount of the bond will be determined by the amount of mortgage loans originated and secured by Pennsylvania real property in a calendar year as indicated on the licensee’s annual report.  For initial mortgage business applicants, the amount of the bond will be determined by the anticipated amount of mortgage loans originated and secured by Pennsylvania real property in the first calendar year of licensing.

Licensed mortgage originators will be responsible for maintaining an individual surety bond only if their employer is a business that is not required to be licensed by virtue of the MLA (i.e. agencies or instrumentalities of a federal, state or local government, or non-profit corporations) and elects not to maintain the required surety bond on behalf of its licensed mortgage originators.  Should individually licensed mortgage originators require individual bonding, the amount of the surety bond required will be determined by the amount of mortgage loan originations secured by Pennsylvania real property in the most recent complete calendar year.  For initial mortgage originator applicants, the amount of the bond will be determined by the anticipated amount of mortgage loans secured by Pennsylvania real property originated in the first calendar year of licensing.


The following summarizes the bond requirements:

Mortgage Lenders and Mortgage Loan Correspondents:
Bond Amount        Anticipated or Actual Amount of PA Mortgage Loan Originations
$100,000                $29,999,999.99 or less
$200,000                $30,000,000 - $99,999,999.99
$300,000                $100,000,000 - $249,999,999.99
$500,000                $250,000,000 or more

Mortgage Brokers
Bond Amount        Anticipated or Actual Amount of PA Mortgage Loan Originations
$50,000                $14,999,999.99 or less
$75,000                $15,000,000 - $29,999,999.99
$100,000              $30,000,000 - $49,999,999.99
$150,000              $50,000,000 or more

Mortgage Originators
Bond Amount        Anticipated or Actual Amount of PA Mortgage Loan Originations
$25,000                $7,499,999.99 or less
$50,000                $7,500,000 - $14,999,999.99
$75,000                $15,000,000 - $29,999,999.99
$100,000              $30,000,000 - $49,999,999.99
$150,000              $50,000,000 or more

Note:  This separate volume based surety bond requirement does not replace the additional requirement for Mortgage Brokers and Mortgage Loan Correspondents who are accepting advanced fees to obtain a separate bond in the amount of $100,000.

Transition Plan:

Licensees and registrants are invited to visit the department’s website (www.banking.state.pa.us) in order to download the approved surety bond form. All licensees must use this form and obtain coverage from a surety company authorized to do business in PA in order to meet the new surety bond requirements.

Licensees and registrants must submit the original and fully executed surety bond form to the department no later than November 30, 2009.

Send original bonds to the following address:

Pennsylvania Department of Banking
Attention:  Compliance Division
Marker Square Plaza
17 North Second Street
Harrisburg, PA 17101


Conclusion:

The Department’s licensing staff is committed to assisting you in this transition.  Should you have any questions regarding the MLA or the transition plan, feel free to contact the licensing staff at (717) 787-3717 or email at ra-asklicensing@state.pa.us.  For questions regarding NMLS and how to create a record on the system, please contact the NMLS Call Center at (240) 386-4444

Thank you,
Jamie Robenseifner
Chief, Licensing Division
Bureau of Compliance, Investigation, and Licensing

Rhode Island Mortgage Loan Originator Professional Requirements under SAFE

Sent on September 11, 2009
Rhode Island Bill Numbers H 5704 A and S 0461 A were enacted into law on July 16, 2009 in order to bring the mortgage licensing laws of the State of Rhode Island into compliance with the federal Secure and Fair Enforcement for Mortgage Lending Act of 2008 (“SAFE Act”).  The SAFE Act requires all states to pass mortgage licensing laws and regulations that meet or exceed certain national standards.  More information about the SAFE Act can be found here: 
http://www.csbs.org/AM/Template.cfm?Section=SAFE_Act.
All individuals meeting the definition in the law of a Mortgage Loan Originator (MLO) must meet new licensing requirements that are in compliance with the SAFE Act.
An individual is acting as a MLO in Rhode Island under the following circumstances:
•    The individual originates loans to be secured by real property located in Rhode Island; or
•     The individual originates loans to be secured by real property located in any other state and the origination activity occurs in the state of Rhode Island;
In order to comply with the new law, all individuals acting as MLOs in Rhode Island must do the following:
MU4 filing with the Rhode Island Division of Banking
All individuals acting as a MLO in Rhode Island should have filed a Form MU4 through NMLS with the Division of Banking.

The SAFE Mortgage Loan Originator Test
All MLOs must pass the SAFE Mortgage Loan Originator Test, which is comprised of two components: a National Component and a State Component.  MLOs must pass each Component with a score of 75% or higher.  This also applies to any MLO who had passed a test given by a course provider approved by the Division of Banking. 

National Component
All Rhode Island licensed MLOs must pass the National Component prior to renewing their license for 2010. (Do I need to do this?)
New entrants to the industry must pass the National Component before filing Form MU4 through NMLS and before filing the Rhode Island State Specific Requirements with the Division of Banking. 
If you have already passed the National Component of the SAFE Mortgage Loan Originator Test and your passing score is part of your MLO record in NMLS, you do not need to take it again.
State Component
All Rhode Island licensed MLOs must also pass the State Component prior to renewing their license for 2010.
New entrants to the industry must pass the State Component before filing Form MU4 through NMLS and before filing the Rhode Island State Specific Requirements with the Division of Banking.
Pre-Licensure Education Requirements
As of July 31, 2009 MLOs must complete twenty (20) hours of pre-licensure education under   R. I. Gen. Laws § 19-14.10-7.
Rhode Island licensed MLOs who have completed 20 or more hours of Rhode Island Division of Banking approved education (pre-licensure and/or continuing education) may be certified by the Division of Banking as having fulfilled the pre-licensure education requirements.  Rhode Island licensed MLOs who were subject to the lesser 12 hours requirement will need to take an additional 8 hours of Rhode Island Division of Banking approved courses to have their hours eligible for certification.
In order to participate in the Certification process, a MLO must have an individual account in NMLS with a unique ID number and have completed the required 20 hours or more of pre-licensure education requirements under an education program approved by the Division of Banking.  Evidence of completion of 20 hours or more of pre-licensure education must be received by the Division in order for a MLO to renew a license for 2010.  The Division encourages MLOs to complete the education requirement by no later than October 31, 2009.  Certification details will be sent in a separate correspondence at a later date.
Individuals not eligible for Certification are required to complete twenty (20) hours of NMLS approved pre-licensure education, including three (3) hours of Rhode Island State content in order to act as a Rhode Island MLO.
If you have already satisfied 20 hours of NMLS Approved Education in any state or have had your education certified by another state, you are required only to meet the three (3) Rhode Island State content hours prior to renewing a license for 2010
As of December 1, 2009 the Division of Banking will accept only NMLS approved courses to meet MLO education requirements.  The Division of Banking will, however, for Rhode Island licensed MLOs who have earned less than 20 hours of education credit hours through Rhode Island approved courses, accept through November 30, 2009 the additional credit hours to be earned for the number of hours needed to obtain the required 20 hours.  All new applicants who have never taken Rhode Island approved education courses must take NMLS approved courses starting November 1, 2009.  The Division of Banking will no longer approve courses or education providers and MLOs will be required to take NMLS approved courses to satisfy either pre-licensure and/or continuing education requirements.  
Criminal Background Check
All individuals acting as MLOs must authorize a fingerprint background check through NMLS for the purpose of conducting a national criminal history background check through the Federal Bureau of Investigation once functionality within the NMLS system is available. This requirement applies to all individuals, regardless of whether you are currently licensed in the state or if you have previously submitted fingerprints for licensure.
NMLS will implement a comprehensive process which includes electronic fingerprint capture with locations throughout the state. 


The details will be sent in a separate correspondence at a later date.
Credit Report
All MLOs must provide authorization to obtain a credit report through NMLS.   The Division of Banking will review the credit report provided as part of its determination of financial responsibility for each MLO.
NMLS will implement a comprehensive process to obtain the required authorization.
The details will be sent in a separate correspondence at a later date.
Continuing Education Requirements
Any MLO who has completed at least 20 hours of NMLS approved, or Rhode Island Division of Banking approved and certified pre licensing education including at least three (3) hours of RI content will be deemed to have satisfied the requirements for renewing their license for 2010.   In order to renew a license for 2011 all MLOs must complete eight (8) hours of NMLS approved Continuing Education during calendar year 2010.
CE must include:
3 hours of Federal law and regulations;
2 hours of ethics that shall include instruction on fraud, consumer protection, and fair lending issues;
2 hours of training related to lending standards for the nontraditional mortgage product market; and
1 hour of Rhode Island law and regulations.
Company Sponsorship of  MLO Licenses
The license status of all MLOs will be considered “inactive” until the licensed MLO is sponsored by a licensed or registered company.  Sponsorship requests are submitted by the company through NMLS. 
Surety Bond/Recovery Fund
Every MLO must be covered under a surety bond that reflects the dollar amount of loans originated on an annual basis. 
Satisfaction of this requirement can be met by the following:
State Licensed MLOs or the companies sponsoring state-licensed MLOs must provide evidence of surety bond meeting Rhode Island requirements as part of their company license or registration.   The Division will be drafting regulations on the amount of the bond. 
The details will be sent in a separate correspondence at a later date.
NMLS Call Report For Companies
R.I. Gen. Laws §§ 19-14-22(a) and 19-14.10-18 requires that every company employing state-licensed MLOs must file a NMLS Mortgage Call Report through the NMLS.  The NMLS Mortgage Call Report is a statement of condition on the company and its operations including financial statements and production activity volumes reported on a per state basis.  Additional information concerning the NMLS Mortgage Call Report will be provided at a later date.
For information and instructions regarding the Professional Requirements please visit the NMLS Resource Center at the following link:
 http://www.stateregulatoryregistry.org/NMLS/AM/Template.cfm?Section=Professional_Requirements.
Visit the following state link for updates to Rhode Island Professional Requirements:
 http://www.dbr.ri.gov/divisions/banking/license.php

Illinois Requires Licensing of Mortgage Loan Originators

Illinois passed a bill requiring the licensing of loan originators. Under the bill, mortgage loan originators and loan processors of underwriters acting as independent contractors must obtain a license under the Residential Mortgage License Act of 1987, unless exempt. The bill also establishes loan originator requirements with respect to education, exemptions, fees, renewals, bonds and notifications. In addition, the bill requires all application forms, solicitations and advertisements to contain the NMLS unique identifier of the person originating the mortgage loan. The bill became effective on July 31, 2009; however, mortgage loan originators and loan processors of underwriters acting as independent contractors have until July 31, 2010 to obtain a license.

Kansas becomes part of NMLS Mortgage Broker Licensing

Kansas adopted rules amending the Mortgage Business Act. Under the rules, mortgage loan originators are required to complete 20 hours of education and pass a written test prior to licensure. The rules also amend surety bond requirements, increase licensing fees for branch offices and establish additional record retention requirements for mortgage companies.

Kansas also adopted rules amending the Uniform Consumer Credit Code. Under the rules, mortgage loan originators are required to complete 20 hours of education and pass a written test prior to licensure. The rules also require mortgage loan originators to annually complete at least 8 hours of continuing education. In addition, the rules amend surety bond requirements and establish additional record retention requirements for supervised lenders.

The rules become effective October 2, 2009; however loan originators are not required to take a written test prior to licensure until on or after July 31, 2010.

NMLS-APPROVED SAFE MORTGAGE LOAN ORIGINATOR TEST AVAILABLE FOR MARYLAND

We are pleased to announce that NMLS-approved SAFE mortgage originator test components – both the national and the Maryland component – are now available for enrollment and scheduling.  The first test appointments for the Maryland component will be available on October 22nd.  The national component has been available since July 30, 2009.  Registration is now open and we recommend that originators register now in order to be able to take the test in October.

• Effective January 1, 2010, applicants for a NEW Maryland Mortgage Loan Originator License will be required to complete the test PRIOR to licensure.  Prior to January 1, 2010, the Commissioner of Financial Regulation will grant conditional approval with the requirement that the test be completed on or before January 1, 2010.
• Applicants who were exempt from licensure prior to July 1, 2009 and who applied for a NEW Mortgage Loan Originator License with Interim status will have until July 31, 2010 to complete the testing requirement.
• Existing licensees as of July 1, 2009 will transition to NMLS in conjunction with the renewal of their license and have until December 31, 2010 to complete the testing requirement.  Please note that HUD recently issued guidance (FAQs) that addresses the issue of grandfathering existing licensees in connection with the testing requirement, as follows:

Question: May a state’s SAFE legislation contain a grandfathering provision allowing mortgage brokers and others who have engaged in the business of originating loans for an extended period of time meet the SAFE Act’s testing and education requirements by some alternative means? 

Answer: “No. The SAFE Act does not allow alternative methods for meeting the testing and education requirements.” 

Based on this guidance, ALL existing Mortgage Loan Originator licensees as of July 1, 2009 must complete the testing requirement by December 31, 2010

California Enacts SAFE Act Legislation - NMLS Mortgage Broker Licensing

On October 11, California Governor Arnold Schwarzenegger signed into law S.B. 36, a bill that requires the employees of licensees under the California Finance Lenders Law (CFLL) and the California Residential Mortgage Lending Act (RMLA) that are engaged in the business of mortgage loan origination to be licensed, beginning July 1, 2010. The bill similarly requires licensees under the California Real Estate Law (REL) to obtain an endorsement from the Commissioner of the California Department of Real Estate to engage in the business of mortgage loan origination, beginning December 1, 2010. Mortgage loan originator license and endorsement applicants are required to, among other things, (i) submit to fingerprinting for the purpose of a criminal history background check, (ii) complete at least twenty hours of pre-license education, and (iii) pass a qualified written test developed by the Nationwide Mortgage Licensing System (NMLS). The bill further provides that licensed mortgage loan originators must complete at least eight hours of continuing education annually and must disclose their NMLS identifier on all residential mortgage loan application forms, solicitations, and advertisements. The bill also enacts other related provisions, such as requiring REL licensees to submit an annual business activities report to the Commissioner of the California Department of Real Estate.

North Carolina Annual Mortgage Broker License Renewal Notice

NC Commissioner of Banks Office

Mortgage Licensing Division

Location: 316 W. Edenton Street, Raleigh, NC 27603

Mailing Address: 4309 Mail Service Center, Raleigh, NC 27699-4309

Telephone: 919-733-0589 Fax: 919-733-2978 Internet: www.nccob.org

October 16, 2009

Company Annual License Renewal Notice

RENEW YOUR LICENSE ONLINE AT: www.stateregulatoryregistry.org/NMLS BEFORE DECEMBER 31, 2009

The Renewal Period will begin November 1st and end December 31st (11:59 ET). Prior to the renewal period all records must be up-to-date and any outstanding deficiencies cleared. Under the provisions of the SAFE Mortgage Licensing Act (SAFE), all licensees are required to keep all material information filed with the North Carolina Commissioner of Banks (NCCOB) up-to-date and current by notifying this office of any change. You are strongly encouraged to log into your NMLS account and review your specific deficiencies prior to November 1, 2009. Failure to clear outstanding deficiencies such as those listed below may delay or result in a denial of your company and branch (es) renewal request.

All Licensees- The NC Mortgage Annual Report Questionnaire (ARQ) was required to be filed by March 31, 2009, via the NCCOB website. This questionnaire collects only North Carolina loan data and is now based on a calendar year, January through December. (https://www.nccob.org/Online/NMLS/Default.aspx)

Mortgage Lenders- Lenders should have uploaded into the NMLS an audited statement of financial condition within 90 days of their fiscal year end that demonstrates a net worth of at least one hundred thousand dollars ($100,000) https://www.statemortgageregistry.com/Public/Default.aspx. In addition, if not shown on the audited financial statements provide evidence of a warehouse line of credit of one million dollars ($1,000,000) or other evidence of funding capacity to conduct mortgage originations. If not on the financial statement a copy of the warehouse line of credit agreement should be emailed to LJohnson@nccob.gov. (North Carolina will not prevent renewal this year for failure to show evidence of the warehouse line of credit)

Mortgage Brokers- Mortgage Brokers should have uploaded into the NMLS a certified balance sheet that demonstrates a net worth of at least twenty-five thousand dollars ($25,000). https://www.statemortgageregistry.com/Public/Default.aspx In addition, provide evidence (in the form of a copy of a bank statement or other verifiable document) that the your company owns cash or other liquid assets in a demand deposit account under the firm's name of at least ten thousand dollars ($10,000) in an FDIC-insured financial institution. This should be emailed to JKillion@nccob.gov.

A company will have the option to either renew and pay for its sponsored licensed mortgage loan originator(s)“MLO” or delegate the responsibility to the “MLO’s”. We encourage companies to submit a renewal for the company, all branches, and all sponsored mortgage loan originators together, as one filing, to expedite the renewal process.

Annual License Renewal Fee (Company) $725

Annual License Renewal Fee (Per Branch) $145

Annual License Renewal Fee (Per MLO) $97.50

All licenses will expire on December 31, 2009, if not timely renewed. To reinstate a company and/or branch license the licensee must pay the annual renewal fee and the reinstatement fee of $250. The deadline for reinstatement of a license is February 28, 2010; thereafter, a new application for licensure must be filed.

All fees are non-refundable.

Michigian Mortgage Licensing Education Requirements Clarification

TO:                 Mortgage Industry and Interested Parties

SUBJECT:    Discontinuance of Michigan Loan Officer Registration Examination, and

Clarification of Michigan Pre-registration Education Requirement

Effective today, October 22, 2009, the Michigan loan officer registration examination administered through Pearson VUE is discontinued and will no longer be available.  Any individual who scheduled a new loan officer registration examination or a retake of the examination and paid the examination fee for an examination to occur on or after October 22, 2009, will not be able to take the Michigan examination, and a full refund of monies paid for such examination will be provided by Pearson VUE.

Please be advised that discontinuance of the Michigan examination administered by Pearson VUE does not mean an examination is not required to obtain a Michigan loan officer registration.  Discontinuance of the Michigan examination is due to the availability of the Nationwide Mortgage Licensing System (NMLS) approved loan originator National test and the NMLS approved loan originator Michigan test.  These two tests replace the Michigan examination.  Taking the NMLS National test and the NMLS Michigan test, and passing each with a minimum score of at least 75%, will qualify an individual for the currently required Michigan loan officer registration; and it will qualify an individual for the Michigan loan originator license effective July 31, 2010.

Please be further advised that the 24-hour, live-instruction, in-Michigan loan officer pre-registration education course is required through July 30, 2010, pursuant to the Mortgage Brokers, Lenders, and Servicers Licensing Act, 1987 PA 173, et seq., as amended.  Beginning July 31, 2010, only a 20-hour loan originator pre-licensing course will be required through the NMLS; however, the current NMLS approved 20-hour pre-licensing course does not, in and of itself, meet the current loan officer pre-registration education requirement.

Loan officer pre-registration education providers are encouraged to obtain approval from the NMLS to be a provider of loan officer/originator education; however, even if an education provider is approved by the NMLS, it is still required to provide a 24-hour, live-instruction, in-Michigan course to meet loan officer pre-registration education requirements.

Information about the NMLS Testing and Education is available on the NMLS website.  The topics include:

• Test Availability Schedule and Content Outlines.
• MLO Testing Handbook.
• Find a Test Center.
• Quick Guide: Enrolling in a Course.
• List of NMLS Approved Course Providers.
• List of State Specific Education Requirements.

On the NMLS website (www.stateregulatoryregistry.com/nmls), select Professional Requirements, then select either Testing or Education.  If you have questions regarding NMLS Testing and Education, please contact the NMLS Call Center at 240.386.4444.

If you have any questions concerning the contents of this correspondence, please call the Office of Financial and Insurance Regulation (OFIR) toll free at 877.999.6442.  Request to speak with Melissa Brown or Olivia Addo of the Consumer Finance Licensing Unit.

CA Passes NMLS Loan Originator Licensing Requirements

California recently adopted several mortgage related bills.
CA Senate Bill 36 became effective October 11, 2009 and includes the following revisions and adoptions:

• Adopts new sections covering: 
• licensing requirements for loan processors and underwriters; 
• application requirements including fingerprinting, personal history, and independent credit reports; 
• minimum standards that must be met by mortgage loan originator licensing applicants; 
• pre-licensing and continuing education requirements and testing requirements; 
• license renewal requirements for mortgage loan originators; 
• requirement for mortgage loan originators to include their unique identifier on application forms, advertisements, and other required documents; 
• prohibited acts and practices for mortgage loan originators and potential penalties for violations;
• requirements for submission of reports of condition;
• notification requirements and licensing requirements for mortgage loan originators and real estate brokers; 
• minimum standards that must be met by mortgage loan originator licensing applicants and the minimum standards for renewal of an endorsement as a mortgage loan originator; 
• requirements for real estate brokers to submit annually a business activities report and detailing what must be contained in the report; 
• record retention requirements; and 
• requirement that mortgage loan originators to obtain and maintain a license and a unique identifier and prohibiting residential mortgage lenders or servicers from employing a mortgage loan originator whose license or license endorsement has lapsed.
• Revises current statutes to add or amend: 
• requirement that a licensee's unique identifier be included on advertisements and certain disclosures; 
• requirement that applications for endorsement to act as a mortgage loan originator must be made electronically or in writing as directed by the Commissioner; 
• minimum net worth requirements for licensees employing one or more mortgage loan originators; 
• requirement for mortgage loan originators to obtain and maintain a license and a unique identifier and prohibiting finance lenders or brokers from employing a mortgage loan originator whose license or license endorsement has lapsed;
• that it is a violation for a person to knowingly make a false statement to the NMLSR;
• that mortgage loan originator licenses must be renewed annually after the payment of an annual assessment;
• notification requirements; and
• bond requirements.
• Repeals CA BUS & PROF § 10131.8 and CA FIN § 50705. 
• Section 87 of CA Senate Bill 36 states the deadline for mortgage loan originators to obtain a license.

CA Assembly Bill 329 becomes effective on January 1, 2010. This bill revises the required notice that must be provided to a reverse mortgage loan application prior to the applicant receiving counseling. It also adds a requirement that a lender provide the borrower with a written checklist prior to the borrower's meeting with a counselor, details what must be included in the checklist, and states other checklist requirements.

CA Senate Bill 94 became effective on October 11, 2009. This bill adopts a new section stating what fees and compensation may not be received for loan modifications or other forms of loan forbearance. Senate Bill 94 also adopts a new section stating what acts are prohibited in relation to loan modifications or other forms of loan forbearance and stating what acts are permitted if the person who offers the loan modification or forbearance is offering it for a loan that is owned or serviced by that person. This bill also amends sections to add an exemption for certain counseling organizations approved by HUD that provide loan modification counseling services for no cost to the borrower and to add a prohibition regarding making materially false or misleading statements or representations to a borrower about the terms or conditions of that borrower's loan, when making or brokering the loan.

CA Assembly Bill 260 becomes effective on January 1, 2010. This bill adds that the commissioner may suspend, revoke, or deny issuance of a license for violations of RESPA, TILA, HOEPA, regulations promulgated under RESPA, TILA, or HOEPA, and for violating or failing to comply with Chapter 2 of Title 14 of Part 4 of Division 3 of the California Civil Code. Assembly Bill 260 also adopts new sections stating that any violations of RESPA, TILA, HOEPA, or related regulations will be violations of the California Finance Lenders Law and the California Residential Mortgage Lending Act. This bill also adopts a new section stating that mortgage brokers providing mortgage brokerage services to a borrower have a fiduciary duty to the borrower, stating what is included in the fiduciary duty, and providing definitions for licensed person, mortgage broker, mortgage brokerage services, and residential mortgage loan. In addition, this bill adopts new sections regarding higher-priced mortgage loans stating what the maximum amount is for prepayment penalties, prohibited acts, permissible fees, document requirements, and potential penalties for violations.

CA Senate Bill 237 becomes effective on January 1, 2010. This bill adds six prohibited acts related to improperly influencing or attempting to improperly influence an appraisal.

CA Senate Bill 239 becomes effective on January 1, 2010. This bill repeals CA PENAL § 532f and then adopts CA PENAL § 532f stating what acts are considered mortgage fraud, the related voluntary and mandatory disclosure requirements, and that this offense is punishable by a maximum of 1 year in the state prison or county jail.