California. Gov. Arnold Schwarzenegger signed S.B. 1637 into law. The bill makes small changes to laws governing certain financial institutions in the state. Under the amended law, banks are no longer authorized to lend in excess of 80 percent of the appraised value of the property, if the loan includes financing to rehabilitate properties for residential use. The law extends background check requirements to licensed persons and license applicants; directors, officers or employees of a