Gov. Janet Napolitano has signed a proposal to license loan originators, a measure strongly backed by Arizona real estate professionals, financial institutions and housing officials.
The Senate had passed the bill, 20-6, after a long battle by the bill's author, Sen. Jay Tibshraeny of Chandler, to bring the proposal up for a vote.
The Chandler Republican resorted to a parliamentary maneuver on June 25 to bypass his caucus, where the bill had languished for some time.
Democratic lawmakers had pressed for legislative action to address the housing crisis during a forum in the Executive Tower on June 3 and followed up with pleas on the Senate floor.
The appeal was backed by officials of the Arizona Department of Financial Institutions, the Department of Real Estate, the Department of Housing and the Attorney General's Office. Industry insiders, including appraisers and loan officers, also urged legislative action to address mortgage fraud and the soaring number of foreclosures that have hit the state.
Many of those who spoke during the June 3 forum pushed for the licensing of loan originators. But critics said they don't believe a piece of paper in the form of a license will stop somebody from committing fraud.
Citing studies, the Pew Charitable Trusts reported that one in every 18 homeowners in Arizona could face foreclosure primarily in the next two years because of their sub-prime related loan.
"You walk down your street and count 18 homes, for the next two years, one in 18 Arizona homeowners will be in foreclosure. That is significant," said State Real Estate Commissioner Sam Wercinski.
No comments:
Post a Comment