Governor Schwarzenegger has approved seven new mortgage related laws. As a plugged-in reader summarizes:
Negative-amortization loans are banned…residential loan originators must now be licensed…it is now a felony to commit fraud on a mortgage loan application…appraisal management firms must register with the State.
Keep in mind that claiming a condo as “primary residence” in order to secure a better mortgage rate but then actually renting it out as an investment property constitutes fraud.
∙ Schwarzenegger signs seven mortgage laws [LA Times]