The title above links to an L.A. Times story about mortgage- and real estate related bills that our Governator signed into law yesterday. Among them:
"The new law also bans so-called negative-amortization loans, which offer the option of monthly payments so low that the loan amounts can actually grow over time." - This is huge.
"Late Sunday night, the governor signed AB 260 by Assemblyman Ted Lieu (D-Torrance). The measure, which takes effect Jan. 1, tightens restrictions on mortgage brokers so they cannot steer borrowers to riskier, higher-interest loans when they qualify for less-expensive ones. " - Also huge.
"AB 957, by Assemblywoman Cathleen Galgiani (D-Stockton), allows buyers of foreclosed homes to choose local escrow officers, rather than being forced to use the escrow company chosen by the seller." - Not so huge, in fact this is completely useless. Now, if there was a bill that prevented seller banks from making buyers prequalify with them, that would be huge.
Judy Graff's sublime-to-the-ridiculous (well, mostly ridiculous) take on real estate for east San Fernando Valley and North Los Angeles communities. This includes Hollywood Hills, Burbank, Studio City and Toluca Lake real estate and homes for sale, and also covers Valley Village, North Hollywood, Glendale, Atwater, Highland Park, Silverlake, Sherman Oaks and other L.A. areas too. General news and musings as well.
Hi Judy,
ReplyDeleteI really appreciate your blog. Thanks for taking the time to maintain it.
I'd really like to get more elaboration from you on your comment:
"Now, if there was a bill that prevented seller banks from making buyers prequalify with them, that would be huge."
What would this mean for buyers, sellers, and the industry as a whole?
Thanks!
Anon, to clarify: many seller banks and listers of foreclosure properties insist that a buyer get pre-approved with a specific lender (them) before their offer is even considered. Yes, a buyer should be pre-approved, but most already have been pre-approved with their own preferred lender. This takes time and effort, and it can be a real hassle to even track down/get calls returned by the selling bank or listing agent's lender. It's just another hoop for buyers to jump through.
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