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Senate Bill 385 (Machado - 2007)

Chapter 301, Statutes of 2007

Some bill research does not include the Governor's file because at the time we researched the bill, the sitting Governor had not released his chaptered bill file. If the Governor's file is not included with this particular research, please contact our office (1-530-666-1917 or quote@legintent.com) and we will be happy to provide this file at no charge if it is available. Please Note: Governor files did not exist prior to 1943.

Applies federal guidance relating nontraditional mortgage products to state-regulated mortgage lenders and brokers.

The intent of this bill is to ensure that all mortgage lenders and brokers, regardless of their regulator, are subject to the federal guidance on nontraditional mortgage product risks.

Nontraditional loans are those that allow borrowers to defer repayment of principal, and in some cases, interest. Borrowers are given the opportunity to make relatively low payments during an initial low interest rate period in exchange for agreeing to make much higher payments during a later amortization period.