Archived News: 9/08/2006 | 4/05/2006

Friday, September 08, 2006

CAMB's "Consumer Protection Package"
signed by Governor

AB 790, AB 2890 and AJR 47 Become Law

From Michael Faust
CAMB Government Affairs Chair
Vice President, American Pacific Mortgage

The California Association of Mortgage Brokers (CAMB) hails Governor Arnold Schwarzenegger and members of the California State Legislature as CAMB-sponsored consumer protection legislation (AB 790 and AB 2890) were signed into law this week.

These bills are a huge win for CAMB members. AB 790 and AB 2890 provide a legal and an enforceable means for CAMB brokers to separate themselves from the less ethical brokers, by displaying the CAMB logo or other CAMB certifications. CAMB brokers can earn these certifications and then demonstrate to consumers they adhere to a code of ethics and best practices. When consumers see the CAMB logo and CAMB certifications they will know that they are dealing with a CAMB broker, someone they can trust. CAMB Brokers having these certifications will know they are protected under the laws of California and it will allow our industry to self-regulate and weed out the bad actors.

The two bills are also huge win for consumers because they now can clearly gauge the level of qualifications of anybody seeking to provide a real estate loan in the State of California. At a glace they will be able to tell who adheres to a code of ethics and best practices and who they can trust.

CAMB President Jack Williams and I joined the Governor at a signing ceremony in Palo Alto, California on Wednesday where he lauded CAMB for its efforts to protect consumers in mortgage lending transactions.

AB 790 and AB 2890 join AJR 47 as the latest effort in CAMB's ongoing consumer protection and industry professionalism campaign. AJR 47 was recently unanimously passed by the California State Senate and Assembly and demand that Congress and the President act immediately to increase federally backed conforming loan limits and provide Californians the same access to these loans as Americans in the rest of the country.

I am proud to say that CAMB is leading the nation when it comes to making sure loan originators hold themselves to the highest standards of professionalism. CAMB is grateful to Assembly members Leland Yee and Mark Ridley-Thomas for authoring our consumer
protection   bills, and we applaud Governor Schwarzenegger for signing them into law.

AB 790 and AB 2890 would make it a licensing violation for any individual Department of Real Estate licensee or an employee working under a Department of Corporations licensee to misrepresent themselves in their business, credentials, education, or even trade membership.

The California Association of Mortgage Brokers recommends that all loan originators seek the highest levels of training and preparation so they can provide the best possible service. We want to make sure that all consumers can seek out the best and most qualified loan consultant without fear of fraud. AB 790 and AB 2890 represent the next step in our Association’s ongoing consumer protection campaign.

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