Sacramento, CA — Governor Arnold Schwarzenegger has signed a bill sponsored by Assemblyman Dave Cogdill designed to prevent loan fraud.
Assembly Bill 502 requires new applicants seeking a California Finance Lender´s license to submit a set of fingerprints for the purpose of a criminal background check.
The new law brings financial lenders into line with the current laws that require mortgage lenders, real estate appraisers and escrow agents to submit to background checks during the licensing process.
Cogdill says the bill was prompted by a recent scandal in Modesto involving the lending firm Dream Life Financial.
The legislation passed the assembly by a 49-7 vote, and the Senate by a 33-4 margin.
The governor signed it into law Friday.