A copy of the letter showing Senator Mike Mcguire sent my insurance reform proposals to Insurance commissioner Ricardo Lara last year!
Summary Video For Wallace Acts 1 & 2
Home inspection reports should be required for all lenders and insurance companies while in contract prior to the sale of the home. Home inspections should be performed yearly on all homes in California that have a loan and insurance. The goal is transparency and education for all parties involved.
The Wallace Act 1 (Short Term)
The California Fair Plan Roof Replacement Program Proposal
I believe the state of California is going to face the largest foreclosure crisis the state has ever seen if something cannot be resolved with regards to the California Fair Plan. The cancellation notices that are sent out based on roof conditions are the nail in the coffin, and sweeping changes are needed. I have put together a five-page breakdown of what has occurred in Lake County and how to fix this crisis. What I have written has been approved by various lenders and real estate brokers and has been submitted to our local representatives in Lake County and to our state representatives. I am hoping that a unity of the private and public sectors and sweeping bipartisan legislation in Sacramento would significantly slow down the cancellation process, keep people in their homes, and restore some faith in the State of California.
While homes are in contract, lenders should be able to provide a roof certification from a licensed general building contractor or a C-39 roofing contractor that the California Fair Plan will honor in order to avoid cancellations after homes have closed escrow. I believe these inspections should also restrict the licensed inspector from performing any work for 12 months in order to avoid bias from a conflict of interest.
California fair plan cancellation inspection video
This video was created during a cancellation inspection in which California Fair Plan was incorrect on their assessment, and I provided a roof certification to be sent back to California Fair Plan.
The Wallace Act 2 (Long Term)
Lenders Resolution Insurance Proposal
I believe that changing existing mortgages from a standard 30-year mortgage to a 40-year mortgage that includes a new insurance policy to replace the California Fair Plan would be the long-term answer. People are buying homes at a younger age and living longer. Yearly roof inspection reports would need to be submitted to the lenders by a licensed general building contractor or a licensed C-39 roofing contractor. Also, yearly defensible space reports would have to be submitted by Cal Fire before the month of August. It is also recommended to have yearly home inspections performed by a certified home inspector just to be aware of the conditions of your home, but this wouldn't be required for only educational purposes. Transparency is needed between the lender and the homeowners in order to replace the outdated existing structure. This will also bring traditional insurance back to the state of California.
California Association Of Home Inspectors Is Needed
Home Inspectors should be licensed in California
Home inspectors should be required to have a license in the state of California. Attached is a proposal titled Wallace 3 Act, which focuses on the need to restructure the entire home inspection industry. Wallace Acts 1 and 2 will create jobs where unlicensed home inspectors could still keep their businesses operating. However, for real estate transactions, they should be required to either have a license with the state or carry a general building contractor license.