California Gov. Gavin Newsom signed legislation prohibiting the filing of fraudulent documents with the county recorder and amending the definition of mortgage fraud.
The legislative counsel’s digest for the bill, AB 3108, stated the bill prohibits the filing of a document with a county recorder that the person knows to contain a material misstatement, misrepresentation, or omission.
Additionally, it stated the bill provides that “a mortgage broker or person who originates a loan commits mortgage fraud if, with the intent to defraud, the person takes specified actions relating to instructing or deliberately causing a borrower to sign documents reflecting certain loan terms with knowledge that the borrower intends to sue the loan proceeds for other uses.”
The legislative counsel’s digest also stated the bill prohibits “a person who originates a covered loan from avoiding, or attempting to avoid, the application of the law regulating the provision of covered loans by committing mortgage fraud.”