Summary CA AB 1160

http://www.leginfo.ca.gov/pub/09-10/bill/asm/ab_1151-1200/ab_1160_bill_20090611_amended_asm_v94.pdf

Synopsis: Supervised financial institutions must provide a translation of a mortgage agreement, if the agreement is primarily negotiated in a language other than English.

• A supervised financial institution (bank, savings association, credit union, or any person subject to division 7 or 20 of the financial code) that negotiates primarily in another language in the course of entering into a contract or agreement for a loan or extension of credit secured by residential real property, must deliver to the other party a form summarizing the terms of the mortgage loan in their own language before the execution of the contract and within 3-days of receipt of the written application.
• The Department of Corporations and Department of Financial Institutions will create a form to be made available in each of these languages to summarize the terms of a mortgage loan: Spanish, Chinese, Tagalog, Vietnamese, and Korean.
• The form must be updated if any material changes are made
• The terms of the English agreement are binding, but the translation may be submitted as evidence that the English agreement is void under this section because of material differences in the translation
• Penalties:
• A licensing agency may require administrative penalties up to the amounts of $2,500 for the first violation, $5,000 for the second violation, and $10,000 for subsequent violations.
• A violation of this section by any supervised financial organization is a violation of its licensing law
• A licensing agency may exercise any other authority available to it, including but not limited to supervisory authority.
• This does not apply to federally chartered financial institutions
• Effective July 1, 2010 or 90-days after the issuance of the forms, whichever occurs later.