Residential lenders in California have seven new mortgage laws to deal with this week — including legislation that allows homebuyers to question their loan modifications through a court monitor, and a bill that bans negative amortization loans. Gov. Arnold Schwarzenegger signed the legislation earlier in the week. The "anti-steering" measure prohibits loan brokers from putting their clients into high interest rate loans when they qualify for lower rate notes. It also limits prepayment penalties to 2% of the loan balance.
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