UPDATE: As of 8/28/2024 the bill has passed the both the California Assembly and Senate. It is now headed to Governor Gavin Newsom to be approved, vetoed, or ignored. We need your help NOW to ensure SB 1146 makes it to the finish line! Please show your support for this bill by contacting Governor Newsom. If he has not signed the bill by Sept. 30, it will not be codified into California law. 

In conversations with the office of Senator Wilk (the bill’s sponsor), Governor Newsom reviews bills in batches according to subject area commonality, i.e., all bills having to do with mortgages would likely be reviewed together. However, there is no schedule available for when this will happen. We recommend contacting Governor Newsom’s office this week.

https://www.gov.ca.gov/contact/
1. Topic: “An Active Bill”
2. What specific bill? “SB 1146 – Mortgages”
3. What is the purpose of your message? “Leave a Comment”
4. What is your stance on this topic? “Pro”
5. Message copy/paste your completed Sample Letter
6. Provide your contact information

Phone
(916) 445-2841

Mail
Governor Gavin Newsom1021
O Street, Suite 9000
Sacramento, CA 95814

Download the Sample Letter For Residents of California [Microsoft Word Document]

Download the Sample Letter for Non-California Residents [Microsoft Word Document]

We previously reported on the unfortunate decision by the 9th Circuit Court of Appeals which resulted in brokered loans losing their exemption from usury limits in California after a loan extension. With this decision, the matter turned to the legislature where we requested a change to the language of the controlling statute.

We are thrilled announce that California Senate Bill 1146 is now pending before Governor Newsom. The bill will make these technical language changes to the controlling statute to allow a broker-arranged loan to retain its usury exemption after a modification, so long as that modification is also arranged by any broker.

Now, we need your to help push this bill across the finish line.  Please see the links above to access a sample letter that can be sent to Governor Newsom’s office.

AAPL has submitted letters in support of the bill to the following. We have linked to their contact pages to submit your own communication.

California Assembly

California Senate

California Governor Gavin Newsom

AAPL will remain focused on this issue as it unfolds. If you have any questions regarding this issue or Geraci’s involvement on behalf of AAPL as our General Counsel, please contact Matt Gunter at m.gunter@geracillp.com.  Note that Matt is the ex-officio member of our Government Relations Committee, which will continue to monitor the case and develop further recommendations.