I have been involved in home loans in Van Nuys, The San Fernando Valley and most recently Hemet and San Jacinto for 20 years.  I have seen up and down markets and I never fail to end up scratching my head when it comes to political action within the industry.  Why is it that law makers find it neccessary to change the laws after the fact.  California has always had stringent licensing guidelines and now we get a new set.  We also now penalize our borrowers by no longer allowing them access to every loan program that might be available.  Quite frankly I believe that the path to a recovery is more lending not less.  Arnold came in as a Republican but has been a turncoat almost from the beggining.  I have attached a link to the bills that he signed in to law today.

I wonder how much of our cash was used to debate a program that no longer exists.  We are no longer allowed to offer Negative Amortization Loans in California.  It's funny but I have not seen one available in quite sometime.  I don't think they will be coming back very soon but one never knows.  The reality is that the market place eliminated the program.  Now if the market happens to find a way to bring it back we are out.  Of course we can spend some more money to rescind the law then.  We will also be spending money on testing mortgage originators (licensing is a good thing that we already do well) and then hiring a new enforcement crowd.  Oh well, I guess that is what we get for being responsible for the current financial condition.  Oh, wait a minute maybe it was not us maybe it was the multi-billion dollar companies that we bailed out even though they were responsible for selling the CDOs

http://www.latimes.com/business/la-fi-mortgage13-2009oct13,0,6365006.story