SENATE BILL 510 (2011) provides that a broker can appoint a branch manager who meets certain criteria and will be accountable for violations of the Real Estate Law and for failure to supervise. SB 510 was the direct product of the DRE's Broker Supervision Task Force. Prior to enactment of SB 510, there were no disciplinary consequences for a licensees who had supervisory authority delegated to him or her by the employing broker. This bill was an additional effort by the Legislature to increase real estate agent accountability during the economic crisis. ASSEMBLY BILL 1424 (2011) requires the DRE to automatically suspend the license of any person appearing on the list of the 500 largest tax delinquencies compiled by the Board of Equalization and the Franchise Tax Board. This bill imposed a suspension requirement on many professional licensing agencies in an effort to improve tax collection efforts and reduce the competitive advantage obtained by non-taxpaypers. Both bills are effective July 1, 2012.

With the enactment of SB 706, the DRE's paramount mission to protect consumers was codified. The Senate Business, Professions, and Economic Development Committee held an oversight hearing in March 2011. The hearing was held in response to publicity that demonstrated loopholes and shortcomings in the Real Estate Law which left consumers vulnerable to unscrupulous operators. DRE officials testified at the oversight hearing, demonstrating that the DRE required enhanced enforcement tools to combat historic levels of mortgage fraud and other fraudulent practices. SB 706 was the direct result of the Legislature's recognition that the DRE needed additional enforcement methods to regulate real estate practices.

Senate Bill 706 renamed the Recovery Account to "Consumer Recovery Account."

SB 53 (2011) was enacted as part of continuing enhancement of DRE enforcement powers and consumer protection by the Senate Banking Committee. The enactment of SB 53 created a "cite and fine" system to prevent unlicensed activity and to help bring licensees into compliance with the Real Estate Law. SB 53 also allows DRE attorneys to apply to Superior Court to enforce subpoenas. Effective 7/1/2012, SB 53 requires licensees conducting broker-controlled escrows to report such activities to the DRE. Effective 1/1/2012, DRE can obtain photographs of individuals, applicants and licensees from the Department of Motor Vehicles, so long as the request is related to the enforcement of the Real Estate Law.

SB 931 prohibits a lender from pursuing a deficiency judgment against the borrower/homeowner in those cases where the lender consents to a short sale. Difficult economic times brought about a vast number of short sales - sales in which the lender agrees to accept less than what is owed from the homeowner in the sale of the residence. Prior to the enactment of SB 931, borrowers were potentially subject to deficiency judgments which would require them to pay the difference between the loan amount and the agreed short sale price.

Senate Bill 994, Wagener Law

All Department of Real Estate Enforcement Deputies have received Proposition 115 training and certification. With this certification, deputies are now legally qualified to testify at felony preliminary hearings regarding hearsay evidence and are able to assist criminal prosecutors with probable cause determinations stemming from DRE investigations. This certification allows DRE to better assist its law enforcement partners as they pursue criminal convictions and achieve maximum consumer protection in the areas of real estate and mortgage fraud.

The Federal Secure and Fair Enforcement (SAFE) Mortgage Licensing Act of 2008 became law in California with the enactment of Senate Bill 36.

AB 260 was part of an ongoing effort by the Legislature to tighten its regulation of mortgage brokers and strengthen consumer protections following the mortgage crisis. AB 260 (2009) placed restrictions on high cost mortgages including limiting the use of prepayment penalties, yield spread premiums and negative amortization. The bill also codified that mortgage brokers are fiduciaries of the borrower. Brokers are now prohibited from steering a borrower into a loan that is more beneficial to the broker than the borrower.

Pursuant to Senate Bill 94, any person, including real estate licensees and lawyers, are prohibited from demanding or collecting an advance fee from a consumer for loan modification or mortgage loan forbearance services affecting 1-4 unit residential dwellings. Most of the provisions of SB 94 will sunset on January 1, 2013, unless otherwise extended by new legislation.

The Department of Real Estate (DRE) formed the Bilingual Outreach and Advocacy Unit (BOA) to address the underserved multi-cultural needs of the Spanish speaking community and other non-English speaking consumers. The BOA Unit is committed to assisting consumers by providing them with real estate resources and advocacy within DRE, as well as with other government agencies, law enforcement, and non-profit organizations. The BOA Unit will assist in consumer education efforts to prevent the perpetuation of real estate crimes, thereby helping to balance reactive enforcement activities with proactive prevention efforts.

In an effort to support new investment and retention of expanding industries in California, the statewide Site Certification Program was created, whose aim is to allow commercial and industrial building projects to commence more quickly than ever before. The program allows local governments to register commercial or industrial sites that are 'project ready' and market them as locations for new business investment and expansion. The certification of a site is performed by the California Department of Real Estate (DRE) who will review required materials to ensure a site meets specific criteria including, but not limited to, verification and availability of utilities, site access, environmental concerns, land use conformance and potential site development costs. The DRE will provide a current inventory of commercial and industrial sites that are available for purchase or lease, have the support of local permitting authorities, meet current evaluation criteria for various commercial and industrial uses and are readily available for project development or initiation of use in the shortest time possible.

Tenant-in-Common Guidelines

The Department of Real Estate (DRE) stepped up efforts to combat the loan modification scams, advance fee rip offs, and mortgage rescue fraud schemes through an internal Home Loan Modification Prevention Task Force. The Task Force was committed to protect consumers with over 2,400 investigations against loan modification companies, 100+ referrals to the California State Bar, 475 respondents named in Desist and Refrain orders and 50 accusations filed against real estate licensees. DRE appointed a Law Enforcement Coordinator to help ensure that all levels of law enforcement are informed of the administrative actions taken by the DRE and coordinate the filing of civil or criminal actions where appropriate. Through collaborative efforts of the Task Force along with local, state and federal law enforcement and government agencies, numerous administrative, civil and criminal actions have resulted and gained national attention. The unlawful actions of unlicensed individuals harm both the consumer and the industry.

In conjunction with the Governor's Interdepartmental Task Force on Non-Traditional Mortgages, the Department of Real Estate developed and participated in multi-departmental programs to mitigate the effects of mortgage foreclosures throughout the State by participating in and sponsoring various consumer protection and outreach programs. This marks one of the first times that a joint committee, known as the 'Housing Committee,' organized under the Business, Transportation and Housing Agency (BTH) and consisting of all the housing-related departments (Department of Housing and Community Development, Department of Financial Institutions, California Housing Finance Agency, Department of Real Estate, Department of Corporations, and Office of Real Estate Appraisers), has collaborated to provide a solution to address the problem.

Emergency regulations were enacted in order to comply with the provisions of Senate Bill 385 (Machado), which became operative on January 1, 2008. The legislation, among other things, requires real estate brokers to adopt and adhere to the obj. New Mortgage Loan Disclosure Statement/Good Faith Estimate, Non-traditional Mortgage Product. Forms are available in English and have been translated into Spanish, Tagalong, Vietnamese, Korean, and Chinese.

Tenant-in-Common Reports

Financial Meltdown Surfaces

The Department of Real Estate deployed a new Interactive Voice Response (IVR) system that features voice activation and new self-service options. Licensees can log into the system to obtain specific information pertaining to their license; and exam applicants are able to get information on the status of a pending application or to reschedule a future examination. A new toll free number, 1-877-DRE-4LIC, replaces the current local numbers for licensing and examinations. The system also includes a separate toll free number, 1-877-DRE-4321, for Spanish-speaking consumers seeking general information or license status information.

With the enactment of Assembly Bill 2429, qualifying educational requirements to take the salesperson examination and to obtain a real estate salesperson license were increased to include the completion of three semester-unit (or quarter-unit equivalent) college-level courses. Prior to October 1, 2007, the Department of Real Estate had the authority to issue a conditional license to those applicants who provided proof of completion of Real Estate Principles, with the remaining two required college-level courses to be completed within 18 months.

Held Series 26 Foreclosure Prevention with the Governor and project homeowner.

The Department of Real Estate (DRE) participated in the Business, Transportation and Housing Agency (BTH) Performance Improvement Council and the technical team focus group. DRE continued its history of performance management with participation in the BTH Performance-Based Management project, and automation of the reporting of Core Performance Measures: Time to issue a real estate license; Percentage of eLicensing transactions; Average time to complete investigations; Average time to complete legal case review and/or file disciplinary action; and Percentage of Pub.

Peak of Housing Market rise.

The Real Estate Advisory Commission elimination was undertaken to promote government reform by reducing duplication, overlap and bureaucracy.

Access to the Internet was granted to all Department of Real Estate staff.

Brokers who conduct private-money multi-lender loan transactions (called fractionalized notes) are required by Business and Professions Code Section 10229(a) to file a specified notice, the Multi-Lender Transaction Notice (RE 860), with the Department of Real Estate within 30 days after the broker¿s first multi-lender transaction and within 30 days of any material change to the information required in the notice.

The fallout from the bursting of the Dot.com bubble shifts interest to housing as an investment.

On November 8, 1999, Governor Gray Davis appointed Paula Reddish Zinnemann as the Department of Real Estate's first female commissioner.

The Department of Real Estate (DRE) deployed a comprehensive, enterprise computer system that migrated all of the DRE's existing information and data processing activities from a variety of stand-alone and outdated systems into an organization-wide client-server system. The EIS is the foundation of DRE's complex information technology (IT) infrastructure.

In 1996, the United States Congress passed the Personal Responsibility and Work Opportunity Act (the Act) which requires states to eliminate a broad array of public benefits for illegal immigrants. The definition of a public benefit includes professional and occupational licenses issued to individuals by state agencies. For purposes of the Department of Real Estate (DRE), the term 'public benefit' applies to original and renewal real estate salesperson and broker licenses; prepaid rental listing service licenses; and mineral, oil and gas broker licenses. <br><br> To implement the provisions of the Act, the DRE adopted Regulation 2718 effective August 1, 1998. The regulation requires proof of legal presence in the United States from all applicants for a license. The requirement applies to applicants for both original and renewal licenses.

The California Residential Mortgage Lending Act (CRMLA) was enacted in 1994 and became operative in 1996. The CRMLA was enacted as an alternative to the existing laws licensing lenders under the Real Estate Law and the California Finance Lenders Law, in order to provide mortgage bankers with a licensing law specifically intended to regulate their primary functions of originating loans and servicing loans. Unlike the Real Estate Law and the California Finance Lenders Law, the CRMLA is specifically designed to authorize and regulate mortgage banking activities. An applicant under the CRMLA may obtain a license as a lender, a servicer, or both.<br><br> The CRMLA authorizes licensees to make federally related mortgage loans, to make loans to finance the construction of a home, to sell the loans to institutional investors, and to service such loans. Licensees are authorized to purchase and sell federally related mortgage loans and to provide contract underwriting services for institutional lenders. Licensees are authorized to service any federally related mortgage loan regardless of whether they make the loan or purchase a servicing portfolio. A licensed CRMLA lender is also authorized to provide brokerage services to a borrower, by attempting to obtain a mortgage loan on behalf of the borrower from another lender.

DOB.

Senate Bill (SB) 1978, which was passed in 1994 and became effective in 1996, created the Residential Mortgage Lending license (RML) under the Department of Corporations (DOC). SB 1978 effectively transferred the regulation of non-depository mortgage lenders from the Department of Real Estate to the DOC.

In accordance with Section 17520 of the Family Code, the Department of Real Estate (DRE) is precluded from issuing or renewing a full-term license if the applicant is on a list of persons (obligors) who have not complied with a court order to provide child support payments. The Department of Child Support Services compiles the list which includes all counties in California.<BR><BR> DRE will issue a 150-day license to an otherwise qualified applicant who is on the list of child support obligors. DRE will advise the applicant that the license applied for cannot be issued unless a release is furnished to DRE from the Department of Child Support Services during the 150 days.<BR><BR> DRE also receives a supplemental list of obligors who are over four months delinquent in child support payments. DRE compares this list to the total real estate licensee population. If there is a match of an existing licensee and the license is not due for renewal for at least six months, the licensee will be advised that the license will be suspended if the delinquency is not cleared within 150 days. The suspension will remain in effect until the delinquency is cleared.

Enforcement Crisis Response Team.

Performance standards for the then Regulatory Program were introduced. They were followed by Subdivision Program performance standards on July 2, 1986, and Legal operating standards and performance metrics on March 6, 1987.

Audit Programs.

Conditional Licenses.

Real estate brokers functioning as mortgage loan brokers arranging loans funded by private, non-institutional lenders are required to submit proposed advertising for pre-publication review and to furnish prospective purchasers or lenders with disclosure documents.

Continuing Education Required.

Mortgage Loan Broker (MLB) problems begin.

In June of 1978, California voters approved Proposition 13, amending the State Constitution so that the maximum annual tax on real property is limited to one percent of 'full cash value' (market value) plus a maximum of two percent annual inflation factor based on the Consumer Price Index (CPI), as calculated by the California Department of Industrial Relations. (Sections 51 and 110.1) An additional sum is allowed to pay for indebtedness on affected property approved by voters prior to the passage of Proposition 13. Also, selected new indebtedness is allowed, only by a twothirds vote of the residents affected.

Real Estate endorsement.

An applicant for any real estate license must submit one set of classifiable fingerprints, acceptable to the State Department of Justice (DOJ), unless the applicant is currently licensed by the Department of Real Estate or has held a real estate license which expired less than two years ago.

Broker Statutory Courses.

Though previously part of the Civil Code, mortgage loan brokerage statutes were added to the Real Estate Law.

The Education and Research Account was established for the purpose of advancing real estate education and research at the University of California, other state colleges and universities, and community colleges.

Disciplinary Actions taken by the Commissioner were first published in the Real Estate Bulletin in order to protect and inform brokers, title and escrow companies, and the public.

Candidates for real estate broker licenses must have two full years experience as a licensed real estate salesperson or comparable experience or specialized education.

The hearing procedure was changed to conform to the new Administrative Procedure Act. Numerous additional grounds for disciplinary action were defined.

The Real Estate Commissioner gained the authority to suspend or revoke a license after investigating a complaint of misrepresentation, undisclosed dual agency, making false promises, commingling funds, or other questionable practices.

California Supreme Court upheld the Real Estate License Law. The California Commission on Real Estate was renamed the Division of Real Estate under the California Department of Investment.

Real Estate jurisdiction began

DRE declared unconstitutional.