• SB 94 (Calderon): Advance Fees. This bill took effect immediately upon the Governor's signature on October 11, 2009. The bill places very significant limitations on the ability to collect advance fees for loan modification services, applying to real estate licensees and anyone else claiming or demanding such a fee. For example, new Civil Code Section 2944.7 says that any person who negotiates or arranges loan modification or forbearance services may not "claim, demand, charge, collect or receive" fees until each and every service has been performed;
• SB 306 (Calderon): Short-Pays. This CEA-sponsored measure has been described very extensively in the CEA News, and at the CEA Conference in October. The bill enacts very specific provisions for requesting and receiving "short-pay demand statements" under Section 2943 of the Civil Code. The bill becomes effective on January 1, 2010. Following is a link to a brief SB 306 PowerPoint presentation explaining the changes and new procedures in detail:
  http://www.ceaescrow.org/Forms/SB-306-Short-Sale-Demand-Procedures.pdf
• AB 957 (Galgiani): Title and Escrow Services. Effective immediately upon the Governor's signature on October 11, 2009, this well-known bill prohibits REO sellers from requiring the use of title or escrow services chosen by the seller, if paid by the buyer.

IMPORTANT: SEND LETTERS TO GOVERNOR TODAY ON NOTARY BILL!!!

Recently the California Legislature forwarded AB 442 (Arambula) to Governor Schwarzenegger for signature. The bill permits notarization of documents where the identification provided by the party is a "Matricula consular" card issued by the Mexican government. Although this issue can be quite sensitive from a cultural perspective, CEA opposed the measure, along with the California Land Title Association and the National Notary Association. We have expressed concerns about increased risks of real estate fraud, where the only identification proffered by the party is the Matricula card.

Below are talking points about the bill, and a letter submitted to Governor Schwarzenegger from CEA asking for a veto. It is important that letters be submitted immediately to the Governor if they are to be considered as he evaluates the bill. Please send a letter in your own words, based upon the talking points and the CEA letter attached. Letters are most effective if they are short and state succinctly the problem with the bill from the "on the ground" perspective of practicing escrow professionals and Notaries Public, if applicable. Please remember to include a direct request that the Governor veto AB 442.

Letters should be addressed as follows:

The Honorable Arnold Schwarzenegger
Governor of California
State Capitol
Sacramento, CA 95814

Dear Governor Schwarzenegger:

Here are the talking points (REMEMBER TO BE BRIEF AND TO THE POINT, STATE IN YOUR OWN WORDS AND INCLUDE A DIRECT REQUEST THAT THE GOVERNOR VETO AB 442):

* Unnecessary.

• Current notary statutes provide that Mexican nationals may use their Mexico-issued driver's licenses and passports
• There are other means by which a person without sufficient identification may still be notarized (credible witness)
• Legislation based on a faulty premise: The author's office has stated that it is not good public policy to allow people with only a Matricula Consular to lawfully purchase property and then say they can't record or transfer title. In fact, this is not the case.
• We know of no circumstance under which a person has been unable to participate in a real estate transaction due to lack of acceptable identification

* Creates a fraud risk.

• The Matricula Consular card could be issued based on identification that would not otherwise be accepted under California notary guidelines, such as a residence/green card, Mexican birth certificate, Mexican voter ID card, declaration of Mexican nationality, Mexican certificate of baptism
• Real estate fraud in California continues to increase
• A key component to any real estate transaction is the identification of the true parties to the transaction

* Identification standards and requirements should be tightened, not relaxed.

• Expanding acceptable identification means an increased burden on notaries to be able to discern between very diverse types of identification to discern counterfeit from genuine where technology increasingly enables criminals to create false identification cards that appear genuine to even the most experienced persons.

* Detracts from recent legislative efforts to make notarization a more reliable and secure means of confirming identity.

• Notaries can no longer notarize a person based on their personal knowledge of that person's identity
• Notary education requirements have been increased significantly within the last five years or other concerns you have about this issue.

Thank you,

California Escrow Association
2520 Venture Oaks Way Suite 150
Sacramento, CA 95833
916.239.4075
916.924.7323 - f
www.ceaescrow.org
cea@camgmt.com