Governor Brown Signs AB 1139 (Reyes), Increasing Consumer Protection for Homebuyers
Sacramento – Today, Governor Edmund G. Brown Jr. signed AB 1139 by Assemblymember Eloise Gómez Reyes, a bill that requires homebuyers to be notified during the purchase of a home whether the property has a Private Transfer Fee (PTF). AB 1139 will protect homebuyers when making these large purchases by ensuring that they are aware that the presence of a PTF could potentially limit their financing options.
“Purchasing a home or a piece of land is a large commitment for most people and knowing all of the facts is essential to making a smart and informed purchase,” said Assemblymember Reyes. “AB 1139 is a consumer protection measure that ensures both current and potential property owners receive clarity regarding how a private transfer fee may impact their ability to obtain financing.”
In March 2012, the Federal Housing Finance Agency (FHFA) adopted a rule requiring that the funds generated by any private transfer fee associated with a home provide a “direct benefit” to the property in order to obtain a Fannie Mae or Freddie Mac backed mortgage. Subsequently, in July 2016 President Obama signed HR 3700 which required the Federal Housing Administration to adopt this same policy.
Having been signed by Governor Brown, AB 1139 will become law Jan. 1, 2018. For more information on the bill, click here.
Assemblymember Eloise Gómez Reyes represents Assembly District 47 which includes the cities of Fontana, Rialto, Colton, Grand Terrace, San Bernardino and the unincorporated areas of Muscoy and Bloomington.
Contact: Galen Dobbins, email@example.com, (916) 319-2047