Today's Law As Amended


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AB-1534 Contractors: mortgage loans.(2009-2010)



As Amends the Law Today


SECTION 1.

 Section 7192 is added to the Business and Professions Code, to read:

7192.
 (a) A home builder may not, directly or through an affiliate, subsidiary, or partner of the home builder, originate a consumer loan to be used for the purchase of a home that is for sale by the home builder or an affiliate, subsidiary, or partner of the home builder.
(b) As used in this section:
(1) “Consumer loan” means a consumer credit transaction that is secured by real property located in this state used, or intended to be used or occupied, as the principal dwelling of the consumer that is improved by a one-to-four residential unit. “Consumer loan” does not include a reverse mortgage, an open line of credit as defined in Part 226 of Title 12 of the Code of Federal Regulations (Regulation Z), or a consumer credit transaction that is secured by rental property or second homes. “Consumer loan” does not include a bridge loan. For purposes of this section, a bridge loan is any temporary loan, having a maturity of one year or less, for the purpose of acquisition or construction of a dwelling intended to become the consumer’s principal dwelling.
(2) “Home” includes a single-family residence or townhome, but does not include apartment buildings or condominiums.
(3) “Home builder” means a general building contractor engaged in the construction of new homes.
(4) “Originate” means to arrange, negotiate, or make a consumer loan.