California Code of Regulations › Title 10 - Investment › Chapter 6 - Real Estate Commissioner › Article 16 - Mortgage Loan Brokerage › Section 2841 - Mortgage Loan Negotiation

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a)
				The term "negotiation" as used in Section
				10133.1(c) of the
				Code does not include any of the limited activities described as follows when
				done by an employee of a real estate broker under the control, direction and
				supervision of the broker:
(1) Preparing and
				designing advertising relating to loan transactions for broker review and
				written approval prior to its distribution, circulation, use or
				publication.
(2) Distributing,
				circulating, using or publishing preprinted brochures, flyers, fact sheets or
				other written materials relating to loans secured by real property which the
				broker can make or negotiate and which have been reviewed and approved in
				writing by the broker prior to their being distributed, circulated or
				published. Materials subject to this subdivision may not contain the name,
				address or telephone number of the nonlicensed employee.
(3) Providing written factual information
				about loan terms, conditions or qualification requirements to a prospective
				borrower that has been either prepared by the broker, or reviewed and approved
				in writing by the broker. A nonlicensed employee may discuss such information
				with a prospective borrower in general terms, but may not provide counseling or
				advice to a prospective borrower.
(4) Notifying a prospective borrower of the
				information needed in order to complete a loan application without providing
				counseling or advice to a prospective borrower.
(5) Entering information provided by the
				prospective borrower on a pre-printed application form without providing
				counseling or advice to a prospective borrower.
(6) Entering information provided by a
				prospective borrower or third party into a preformatted computer
				database.
(7) Accepting and
				providing a receipt on behalf of a broker for funds received from a prospective
				borrower for credit or appraisal fees.
(8) Preparing and mailing requests for
				verification of employment, verification of deposits, credit reports or
				appraisal reports. Obtaining such reports for transmission to the
				broker.
(9) Assembling, under the
				direction of the broker, materials obtained in the course of a loan transaction
				for submission to a prospective lender or loan committee, providing the final
				determination as to completeness or compliance is made by the broker.
(10) Communicating with a service provider in
				connection with a loan transaction to determine when reports or other
				information needed concerning any aspect of the transaction will be delivered,
				or when certain services will be performed or completed.
(11) Mailing, delivering, picking up, or
				arranging the mailing, delivery, or picking up of documents or instruments
				related to the loan transaction, including obtaining signatures to the
				documents or instruments from principals, parties or service providers in
				connection with the loan transaction, as long as the nonlicensed employee does
				not interpret or explain the content, relevance, significance or effect of the
				document or signature and such documents or instruments have been reviewed and
				approved in writing by the broker.
(12) Contacting a prospective lender to
				determine the status of a loan application.
(13) Responding to an inquiry or notifying a
				prospective borrower or his or her agent of the status of the loan application
				as long as the nonlicensed employee does not interpret or explain the
				relevance, significance or effect of that status. A nonlicensed employee may
				communicate omissions to a party or principal to the loan as long as the
				nonlicensed employee does not interpret or explain the relevance or
				significance of those omissions.
(14) Preparing and completing documents and
				instruments under the supervision and direction of the broker if the final
				documents or instruments will be or have been reviewed and approved in writing
				by the broker.
(15) Arranging or
				making appointments for third party service providers to enter the real
				property securing the loan, or arranging or making appointments for the
				prospective borrower or lender to meet with the broker, lender or other party
				or service provider in connection with the loan.