Existing law, until January 1, 2013, prohibits any person who negotiates or arranges residential mortgage loan modifications for a fee, from demanding or receiving pre-performance compensation, or requiring security as collateral or taking a power of attorney from the borrower, and makes a violation of that prohibition a misdemeanor subject to specified fines. This legislation extends the operation of the above-described provisions indefinitely.
This bill also prohibits any person from engaging in the business of, or advertising as, a mortgage loan originator without first having obtained a license endorsement, as specified.
Enacted September 2012. Link to bill: http://www.leginfo.ca.gov/pub/11-12/bill/asm/ab_1901-1950/ab_1950_bill_20120925_chaptered.pdf