Governor Schwarzenegger Vetoes AB 1830, Which Targeted Mortgage Brokers

Governor Cites Unilateral Fee-Shifting Attorney’s Fees Provision As One Basis For His Veto.

            Recently, on September 25, 2008, California Governor Arnold Schwarzenegger vetoed AB 1830, pending legislation sponsored by Assemblyman Ted Lieu (Democrat—Torrance).  AB 1830 would have expanded mortgage broker regulation and contained a provision that borrowers must be awarded attorney’s fees if they are prevailing parties for violations of the proposed prohibitions in AB 1830.

            As one basis for his veto of AB 1830, Governor Schwarzenegger cited his distaste of the attorney’s fees provision of the proposed legislation.  He believed that it made mortgage brokers liable for technical violations and was not enthralled with the attorney’s fees provision that was unilateral in nature—borrowers get fees if they prevail, but mortgage brokers do not recoup them if they win. 

            For more on AB 1830 and other consumer-oriented legislation that was signed into law or vetoed, see this September 26, 2008 article from the San Francisco Chronicle which was posted on SFGate. 

            

Comments

[kantoren te koop]

I believe it is good idea that AB 1830 would have expanded mortgage broker regulations,which containes a provision that borrowers must be awarded attorney’s fees.