Senate Commerce revises mortgage regulation bill

Friday, May 28, 1999 | 9:38 a.m.

Assemblyman David Goldwater, who pushed hard for the measure, said later that the Assembly would reject the Senate revisions and the bill would wind up in a do-or-die conference committee.

If the conferees can't resolve the differences, AB64 will die. But Goldwater, D-Las Vegas, said he's hopeful a compromise can be reached.

The measure, passed by the Assembly April 30, calls for giving the attorney general's office jurisdiction over investigation and prosecution of all criminal and civil cases regarding the mortgage brokers and bankers' industry.

As approved by the Assembly, it outlined disciplinary actions and set maximum fines of up to $10,000 for violations.

The Senate committee took out provisions requiring advertising disclosures, capital requirements, mandatory fines and penalties and other provisions of the bill. Now, there's a requirement that an investor agree in writing to any changes in types of investments.

The bill was developed following the collapse of the Harley Harmon Mortgage Co. Harmon served in the state Assembly in the 1970s.

No charges were filed in connection with the practices of Harmon's company, in which Las Vegas investors reportedly lost millions of dollars.