reglab/statecodes huggingface dataset:
California Code of Regulations › Title 10 - Investment › Chapter 6 - Real Estate Commissioner › Article 15 - Trust Fund Accounts › Section 2835 - Commingling

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
"Commingling" as used in Section
				  10176(e) of the
				  Code is prohibited except as specified in this section. For purposes of Section
				  10176(e), the
				  following shall not constitute "commingling":
(a) The deposit into a trust account of
				reasonably sufficient funds, not to exceed $200, to pay service charges or fees
				levied or assessed against the account by the bank or financial institution
				where the account is maintained.
(b) The deposit into a trust account
				maintained in compliance with subdivision (d) of funds belonging in part to the
				broker's principal and in part to the broker when it is not reasonably
				practicable to separate such funds, provided the part of the funds belonging to
				the broker is disbursed not later than twenty-five days after their deposit and
				there is no dispute between the broker and the broker's principal as to the
				broker's portion of the funds. When the right of a broker to receive a portion
				of trust funds is disputed by the broker's principal, the disputed portion
				shall not be withdrawn until the dispute is finally settled.
(c) The deposit into a trust account of
				broker owned funds in connection with activities pursuant to either subdivision
				(d) or (e) of Section
				10131 of the Code or when making,
				collecting payments or servicing a loan which is subject to the provisions of
				Section 10240 of the Code provided:
(1) The broker meets the criteria of Section
				10232 of the Code.
(2) All funds in the account which are owned
				by the broker are identified at all times in a separate record which is
				distinct from any separate record maintained for a beneficiary.
(3) All broker owned funds deposited into the
				account are disbursed from the account not later than 25 days after their
				deposit.
(4) The funds are
				deposited and maintained in compliance with subdivision (d).
(5) For the purpose of this section, a broker
				shall be deemed to be subject to the provisions of Section
				10240 of the Code if the broker
				delivers the statement to the borrower required by Section
				10240.
California Code of Regulations › Title 10 - Investment › Chapter 6 - Real Estate Commissioner › Article 15 - Trust Fund Accounts › Section 2836 - Subdivider and Broker Records

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a)
(1) A
				subdivider shall maintain or cause to be maintained, in accordance with
				accepted accounting practices, records of all funds received from prospective
				purchasers or lessees of subdivisions interests.
(2) A subdivider shall maintain or cause to
				be maintained, in accordance with accepted accounting practices, records of
				receipt, deposit and disbursement of all funds collected or obtained in
				connection with the operation of a homeowners association
(3) The records shall reflect dates of
				receipt and disbursement of funds and the names of persons from whom received
				and to whom disbursed. The records shall be retained by the subdivider for a
				period of three years after the date of receipt or
				disbursement.
California Code of Regulations › Title 10 - Investment › Chapter 6 - Real Estate Commissioner › Article 16 - Mortgage Loan Brokerage › Section 2840.1 - Alternative Approved Borrower Disclosure Statement. [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1. New section
				  filed 11-8-93; operative 12-8-93 (Register 93, No. 46).
2. New
				  subsection (d) filed 11-13-96; operative 11-13-96 pursuant to Government Code
				  section
				  11343.4(d)
				  (Register 96, No. 46).
3. Amendment of section and NOTE filed
				  3-17-2005; operative 4-16-2005 (Register 2005, No. 11).
4. Repealer
				  filed 8-29-2007; operative 9-28-2007 (Register 2007, No.
				  35).
Note: Authority cited: Section
					 10080,
					 Business and Professions Code. Reference: Sections
					 10236.4,
					 10240,
					 10240.2
					 and
					 10241,
					 Business and Professions Code.
California Code of Regulations › Title 10 - Investment › Chapter 6 - Real Estate Commissioner › Article 16 - Mortgage Loan Brokerage › Section 2841.5 - Recordation of Trust Deeds - Multi-Lender Loans

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
A real estate licensee who negotiates a promissory note
				  secured by a trust deed on real property pursuant to Section
				  10238 of the Code shall cause the
				  trust deed to be executed naming as beneficiaries the lenders or their nominee
				  (who shall not be the licensee or the licensee's nominee) and shall cause the
				  trust deed to be recorded, with the county recorder of the county in which the
				  real property is located prior to the time that any funds are disbursed, except
				  when the lender has given written authorization for prior release. If funds are
				  released on the lenders' written authorization, the trust deed shall be
				  recorded, or delivered to the lenders or beneficiaries with a written
				  recommendation that it be recorded forthwith, within 10 days following
				  release.
1. New section
				  filed 2-28-2006; operative 3-30-2006 (Register 2006, No.
				  9).
Note: Authority cited: Section
					 10080,
					 Business and Professions Code. Reference: Section
					 10238,
					 Business and Professions Code.
California Code of Regulations › Title 10 - Investment › Chapter 6 - Real Estate Commissioner › Article 16 - Mortgage Loan Brokerage › Section 2842.5 - Signing Mortgage Loan Disclosure Statement

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
For purposes of Section
				  10240 of the Code a loan
				  application shall be considered complete when the licensee receives or has
				  prepared a written application on an application form or forms normally used by
				  the lender for a Federally Related Mortgage Loan, and as to non-federally
				  related mortgage loans, when the licensee receives or has prepared a written
				  application on an application form or forms normally used by a lender or the
				  licensee.
1. Amendment
				  filed 12-11-73 as an emergency; designated effective 1-1-74. Certificate of
				  Compliance included (Register 73, No. 50). For prior history, see Register 61,
				  No. 15.
2. Amendment filed 7-1-83; effective thirtieth day
				  thereafter (Register 83, No. 30).
3. Amendment filed 11-8-93;
				  operative 12-8-93 (Register 93, No. 46).
4. Amendment filed
				  11-13-96; operative 11-13-96 pursuant to Government Code section
				  11343.4(d)
				  (Register 96, No. 46).
Note: Authority cited: Section
					 10080,
					 Business and Professions Code. Reference: Sections
					 10240
					 and
					 10241,
					 Business and Professions Code.
California Code of Regulations › Title 10 - Investment › Chapter 6 - Real Estate Commissioner › Article 16 - Mortgage Loan Brokerage › Section 2842.7 - Costs and Expenses to be Shown on Mortgage Loan Broker's Statement. [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1. New section
				  filed 12-16-58; effective thirtieth day thereafter (Register 58, No.
				  23).
2. Repealer filed 7-5-61 as an emergency; effective on filing
				  (Register 61, No. 13).
3. Certificate of Compliance filed 8-4-61
				  (Register 61, No. 15).
California Code of Regulations › Title 10 - Investment › Chapter 6 - Real Estate Commissioner › Article 16 - Mortgage Loan Brokerage › Section 2843 - Restrictions on Chargeable Costs and Expenses

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
No "costs and expenses of making the loan" referred to in
				  Section 10241(a) which
				  have not been paid, incurred or reasonably earned by the loan broker shall be
				  charged to the borrower. No fee may be charged to a borrower as part of the
				  costs and expenses of making the loan which exceeds the fee customarily charged
				  for the same or comparable service in the community where the service was
				  rendered.
If the escrow depositary for a loan transaction is a licensed
				  escrow agent, a title insurance company, a bank or trust company or a savings
				  and loan association, and a fee is charged to the borrower by the escrow
				  depositary for the escrow function, no additional fee may be charged by the
				  broker, a salesperson licensed to the broker or any entity controlled by the
				  broker for services related to the conduct of an escrow.
1. Amendment
				  filed 11-19-69; designated effective 1-2-70 (Register 69, No. 47). For prior
				  history, see Register 61, No. 15.
2. Amendment filed 12-11-73 as an
				  emergency; designated effective 1-1-74. Certificate of Compliance included
				  (Register 73, No. 50).
3. Amendment of section and NOTE filed
				  11-13-96; operative 11-13-96 pursuant to Government Code section
				  11343.4(d)
				  (Register 96, No. 46).
Note: Additional authority cited: Section
					 10248.9,
					 Business and Professions Code. Reference: Sections
					 10241
					 and
					 10241.1,
					 Business and Professions Code.
California Code of Regulations › Title 10 - Investment › Chapter 6 - Real Estate Commissioner › Article 16 - Mortgage Loan Brokerage › Section 2844 - Lending Practices for Nontraditional and Subprime Mortgage Products

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) A real estate
				broker acting within the meaning of Section
				10131.1 of the Code shall adopt
				and adhere to the policies and procedures set forth in the guidance on
				nontraditional mortgage product risks published on November 14, 2006, by the
				Conference of State Bank Supervisors and the American Association of
				Residential Mortgage Regulators, and the Statement on Subprime Mortgage Lending
				published on July 17, 2007, by the aforementioned entities and the National
				Association of Consumer Credit Administrators, and which are incorporated by
				reference.
(b) Pursuant to
				subdivision (a), a real estate broker shall, at a minimum, adopt and adhere to
				the following:
(1) Risk Management Practices
(A) Consider a borrower's ability to repay
				the mortgage loan according to its terms as the primary basis for making the
				loan rather than the foreclosure or liquidation value of the
				collateral.
(B) Ensure that a loan
				results in an identifiable benefit to the borrower and refrain from inducing a
				borrower to repeatedly refinance a loan in order to charge high points and fees
				each time the loan is refinanced.
(C) Fully disclose the true nature of the
				mortgage loan obligation, or ancillary products to the
				borrower.
California Code of Regulations › Title 10 - Investment › Chapter 6 - Real Estate Commissioner › Article 16 - Mortgage Loan Brokerage › Section 2845 - Interpretive Opinion Request

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) A request for an interpretive opinion
				pursuant to Section
				10236 of the Code shall be
				addressed to the Headquarters Office of the Bureau to the attention of Chief
				Counsel.
(b) An interpretive
				opinion request shall satisfy each of the following conditions:
(1) The request shall clearly state that it
				is a request for an interpretive opinion pursuant to Section
				10236 of the Code.
(2) The request shall be addressed to a
				specific transaction or transactions or to a narrowly-defined course of conduct
				or business practice. The persons or entities on whose behalf the request is
				made shall be identified. If the persons or entities cannot be identified by
				name at the time of the request, they must be identified by their capacities in
				the transaction, course of conduct, or business practice. If the person
				requesting the opinion knows of persons other than those on whose behalf the
				request is made who intend to engage in a transaction, course of conduct, or
				business practice in reliance upon the opinion, such information shall also be
				included in the request for opinion.
(3) The nature of the transaction, course of
				conduct, or business practice, the capacities of parties to the transaction,
				and relevant details about it shall be described. Instruments, or other
				documents that will be used in the transaction, course of conduct, or business
				practice, completed in illustrative form to explain the transaction, course of
				conduct, or business practice, shall be appended to the request.
(4) The question or questions central to the
				opinion request shall be specifically and narrowly framed.
California Code of Regulations › Title 10 - Investment › Chapter 6 - Real Estate Commissioner › Article 16 - Mortgage Loan Brokerage › Section 2846 - Approved Lender/Purchaser Disclosure Statement

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) The commissioner shall publish and make
				available to interested persons as an official form of the Bureau of Real
				Estate, an approved format and content for the disclosure statements referred
				to in subdivisions (a) and (b) of Section
				10232.5 of the Code.
(b) The publication of a form pursuant to
				subdivision (a) hereof is for the purpose of aiding real estate licensees in
				providing information of significance to prospective lenders and purchasers of
				promissory notes secured by real property and real property sales contracts in
				a uniform and effective manner. The form shall not constitute the only format
				or prescribed content that will satisfy the requirements of Section
				10232.5 of the Code. The
				commissioner will entertain requests for approval of a proposed disclosure
				statement not in conformance with the form published pursuant to subdivision
				(a) only from persons who have established to the satisfaction of the
				commissioner that the request for approval is made on behalf of 25 or more real
				estate brokers who are subject to subdivision (e) of Section
				10232 of the Code.
1. Repealer
				  filed 5-13-82; effective thirtieth day thereafter (Register 82, No.
				  20).
2. New section filed 5-13-82; effective thirtieth day
				  thereafter (Register 82, No. 20). For prior history, see Register 61, No.
				  15.
3. Change without regulatory effect amending subsection (a)
				  filed 6-30-2014 pursuant to section
				  100, title 1, California Code of
				  Regulations (Register 2014, No. 27).
Note: Authority cited: Section
					 10080,
					 Business and Professions Code. Reference: Sections
					 10232.4
					 and
					 10232.5,
					 Business and Professions Code.
California Code of Regulations › Title 10 - Investment › Chapter 6 - Real Estate Commissioner › Article 16 - Mortgage Loan Brokerage › Section 2846.1 - Material Change-Multi-Lender Loans

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
A material change requiring an amended notice under Section
				  10238(a) of the
				  Code shall include but shall not be limited to the following:
(a) A change of the month in which the
				broker's fiscal year ends.
(b) A
				change with respect to whether the broker is (or expects to be) required to
				file reports of inspection of its trust account(s) with the Real Estate
				Commissioner pursuant to paragraph (3) of subdivision (k) of Section
				10238 of the Code.
(c) A change with respect to the identity of
				the Servicing Agent.
1. New section
				  filed 6-20-2002; operative 7-20-2002 (Register 2002, No. 25).
2.
				  Amendment of first paragraph, subsection (b) and NOTE filed 2-28-2006;
				  operative 3-30-2006 (Register 2006, No. 9).
Note: Authority cited: Section
					 10080,
					 Business and Professions Code. Reference: Section
					 10238,
					 Business and Professions Code.
California Code of Regulations › Title 10 - Investment › Chapter 6 - Real Estate Commissioner › Article 16 - Mortgage Loan Brokerage › Section 2846.5 - Report of Annual Trust Fund Accounts Review

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) The annual report of a review of trust
				fund financial statements required under subdivision (a) of Section
				10232.2 and/or subdivision (o) of
				Section 10238 of the Code shall include
				confirmation by an independent public accountant that:
(1) The broker maintains those records
				specified in Sections
				2831 and
				2831.1 of these regulations, and
				reconciles such records in accordance with Section
				2831.2 of these
				regulations.
(2) Each trust fund
				bank account is maintained by the broker in compliance with Sections
				2832 and
				2834 of these
				regulations.
(3) The accountant has
				reviewed the accompanying balance sheet of trust funds held by the broker as of
				the last day of the fiscal year, and the accompanying statement of receipts and
				disbursements of trust funds and changes in cash for the fiscal year, in
				accordance with standards established by the American Institute of Certified
				Public Accountants.
(4) The
				accountant is not aware of any material modifications that should be made to
				the trust fund financial statements in order for them to be in conformity with
				generally accepted accounting principles.
(5) The adjusted balance(s) of the bank trust
				account(s) maintained by the broker as shown in the accompanying financial
				statements were on deposit as of the financial statements date.
(6) The trust fund bank account balance(s)
				and receipts and disbursements shown on the financial statements agreed with
				the amounts reflected on the cash records specified in Section
				2831 of these
				regulations.
(7) The trust fund
				liability balance for each open account as itemized in the financial statements
				agreed with the amount reflected on the separate beneficiary records specified
				in Section
				2831.1 of these
				regulations.
California Code of Regulations › Title 10 - Investment › Chapter 6 - Real Estate Commissioner › Article 16 - Mortgage Loan Brokerage › Section 2846.7 - Delayed Filing of Annual Trust Account Report

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) A real estate broker whose fiscal year
				ends between the last day of November and the last day of February inclusive
				shall regularly have until the following May 31 in which to file the report
				required by subdivision (a) of Section
				10232.2 or subdivision (o) of
				Section 10238 of the Code.
(b) A real estate broker whose fiscal year
				ends between March 1 and November 29 inclusive shall file the report required
				by subdivision (a) of Section
				10232.2 or subdivision (o) of
				Section 10238 of the Code not later than
				90 days after the end of the fiscal year unless the broker shall have
				previously obtained written authorization from the Bureau to file the report
				more than 90 days after the end of the fiscal year.
1. New section
				  filed 5-13-82; effective thirtieth day thereafter (Register 82, No.
				  20).
2. Amendment of section heading, section and NOTE filed
				  11-9-2000; operative 12-9-2000 (Register 2000, No. 45).
3. Amendment
				  of section and NOTE filed 2-28-2006; operative 3-30-2006 (Register 2006, No.
				  9).
4. Change without regulatory effect amending subsection (b)
				  filed 6-30-2014 pursuant to section
				  100, title 1, California Code of
				  Regulations (Register 2014, No. 27).
Note: Authority cited: Section
					 10080,
					 Business and Professions Code. Reference: Sections
					 10232.2
					 and
					 10238,
					 Business and Professions Code.
California Code of Regulations › Title 10 - Investment › Chapter 6 - Real Estate Commissioner › Article 16 - Mortgage Loan Brokerage › Section 2846.8 - Quarterly Trust Fund Status Report

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) The Commissioner shall publish and make
				available to interested persons as an official form of the Bureau, an approved
				format and content for the Trust Fund Status Report described in Section
				10232.25 of the Code.
(b) The publication of a form pursuant to
				subdivision (a) is for the purpose of aiding real estate licensees in complying
				with Section
				10232.25 of the code. The form
				prescribed by the Commissioner shall not constitute the only format or content
				that will satisfy the requirements of Section
				10232.25.
1. New section
				  filed 1-21-83; effective thirtieth day thereafter (Register 83, No.
				  4).
2. Repealer of subsection (c) filed 11-13-96; operative 11-13-96
				  pursuant to Government Code section
				  11343.4(d)
				  (Register 96, No. 46).
3. Change without regulatory effect amending
				  subsection (a) filed 6-30-2014 pursuant to section
				  100, title 1, California Code of
				  Regulations (Register 2014, No. 27).
Note: Authority cited: Section
					 10080,
					 Business and Professions Code. Reference: Section
					 10232.25,
					 Business and Professions Code.
California Code of Regulations › Title 10 - Investment › Chapter 6 - Real Estate Commissioner › Article 16 - Mortgage Loan Brokerage › Section 2847 - Voluntary Submission of Proposed Advertising

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) A real estate broker may submit for the
				Bureau's approval advertising proposed to be used in connection with the
				performance of acts for which a real estate license is required pursuant to
				Section 10131.1 or subdivision (d) or (e)
				of Section
				10131 of the Code.
(b) Proposed advertising copy shall be
				submitted to the Sacramento office of the Bureau. Written or graphic
				advertising shall be submitted in the format in which it will be displayed to
				the public. A written script shall be submitted for radio or television
				advertisements. A submission of advertisement to the Bureau shall be
				accompanied by the maximum fee set forth in Section
				10232.1 of the Code.
1. Amendment
				  filed 7-31-61 as an emergency; effective upon filing. Certificate of Compliance
				  filed 8-4-61 (Register 61, No. 15). For prior history of section, see Register
				  61, No. 13).
2. Amendment filed 12-11-73 as an emergency; designated
				  effective 1-1-74. Certificate of Compliance included (Register 73, No.
				  50).
3. Amendment filed 5-13-82; effective thirtieth day thereafter
				  (Register 82, No. 20).
4. Redesignation and amendmenty of first
				  paragraph as new subsection (a), new subsection (b), and amendment of NOTE
				  filed 12-30-97; operative 1-29-98 (Register 98, No. 1).
5. Change
				  without regulatory effect amending section filed 6-30-2014 pursuant to section
				  100, title 1, California Code of
				  Regulations (Register 2014, No. 27).
Note: Authority cited: Sections
					 10080
					 and
					 10232.1,
					 Business and Professions Code. Reference: Section
					 10232.1,
					 Business and Professions Code.
California Code of Regulations › Title 10 - Investment › Chapter 6 - Real Estate Commissioner › Article 16 - Mortgage Loan Brokerage › Section 2847.1 - Advertising Submission and Clearance Procedures. [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1. New section
				  filed 12-11-73 as an emergency; designated effective 1-1-74. Certificate of
				  Compliance included (Register 73, No. 50).
2. Amendment filed
				  5-13-82; effective thirtieth day thereafter (Register 82, No.
				  20).
3. Amendment of subsection (a) filed 11-16-87; operative
				  12-16-87 (Register 87, No. 47).
4. Repealer filed 11-27-96;
				  operative 12-27-96 (Register 96, No. 48).
Note: Authority cited: Section
					 10080,
					 Business and Professions Code. Reference: Section
					 10232.1,
					 Business and Professions Code.
California Code of Regulations › Title 10 - Investment › Chapter 6 - Real Estate Commissioner › Article 16 - Mortgage Loan Brokerage › Section 2847.2 - Advertising Identification System. [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1. New section
				  filed 12-11-73 as an emergency; designated effective 1-1-74. Certificate of
				  Compliance included (Register 73, No. 50).
2. Repealer and new
				  section filed 5-13-82; effective thirtieth day thereafter (Register 82, No.
				  20).
3. Repealer filed 11-13-96; operative 11-13-96 pursuant to
				  Government Code section
				  11343.4(d)
				  (Register 96, No. 46).
4. Repealer filed 11-27-96; operative
				  12-27-96 (Register 96, No. 48).
Note: Authority cited: Sections
					 10080
					 and
					 10232.1,
					 Business and Professions Code. Reference: Sections
					 10232.2
					 and
					 10237.7,
					 Business and Professions Code.
California Code of Regulations › Title 10 - Investment › Chapter 6 - Real Estate Commissioner › Article 16 - Mortgage Loan Brokerage › Section 2847.3 - Disclosure of License and Issuing Department

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) Use of either of the following statements
				shall satisfy the requirements of Sections
				10235.5 and
				17539.4 of the Code.
(1) Real estate broker, California Bureau of
				Real Estate.
(2) California Bureau
				of Real Estate, real estate broker. The words "California" and "Bureau" may be
				abbreviated only as "CA" or "CAL" or "Calif" and "Bur". A dash (- -) may be
				used in lieu of the comma appearing in the statements set forth above in
				paragraphs (1) and (2).
California Code of Regulations › Title 10 - Investment › Chapter 6 - Real Estate Commissioner › Article 16 - Mortgage Loan Brokerage › Section 2847.4 - Notice to Commissioner. [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1. New section
				  filed 12-11-73 as an emergency; designated effective 1-1-74. Certificate of
				  Compliance included (Register 73, No. 50).
2. Repealer filed
				  1-16-76; effective thirtieth day thereafter (Register 76, No.
				  3).
Note: Additional authority cited: Section
					 10248.9,
					 Business and Professions Code.
California Code of Regulations › Title 10 - Investment › Chapter 6 - Real Estate Commissioner › Article 16 - Mortgage Loan Brokerage › Section 2849.1 - Reporting Transactions Pending at Close of Fiscal Year

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
In preparing the report required by Section
				  10232.2(c) of the
				  Code, a sale or loan transaction shall be considered as business conducted in
				  the fiscal year in which the escrow for the transaction
				  closed.
1. Repealer
				  and new section filed 1-17-80; effective thirtieth day thereafter (Register 80,
				  No. 3). For prior history, see Register 76, No. 3 and 61, No.4.
2.
				  Repealer and new section filed 5-13-82; effective thirtieth day thereafter
				  (Register 82, No. 20).
3. Repealer and new section filed 1-9-85;
				  effective thirtieth day thereafter (Register 85, No.
				  2).
Note: Authority cited: Section
					 10081,
					 Business and Professions Code. Reference: Section
					 10232.2,
					 Business and Professions Code.
California Code of Regulations › Title 10 - Investment › Chapter 6 - Real Estate Commissioner › Article 16 - Mortgage Loan Brokerage › Section 2849.2 - Recording Trust Deeds or Assignments. [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1. New section
				  filed 5-16-60 as a emergency; effective upon filing (Register 60, No.
				  12).
2. Repealer filed 7-5-61; as an emergency; effective upon
				  filing (Register 61, No. 13). For prior history see Register 61, No.
				  12.
Note: Authority cited: Section
					 10176.2,
					 Business and Professions Code; Sections
					 3081.095 and
					 3081.096, Civil
					 Code.
California Code of Regulations › Title 10 - Investment › Chapter 6 - Real Estate Commissioner › Article 16 - Mortgage Loan Brokerage › Section 2849.3 - Withdrawing Funds from Escrow. [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1. New
				  Sections 2849.3,
				  2849.4,
				  2849.5,
				  2849.6 filed 2-20-61 as an
				  emergency; effective upon filing (Register 61, No. 4)
2. Amendments
				  filed 6-16-61 as an emergency; effective upon filing. Certificate of
				  Compliance--Gov. Code. 11422.1 including (Register 61, No. 12).
3.
				  Repealers of 2849.3, 2849.4, 2849.5 and 2849.6 filed 7-5--61 as an emergency;
				  effective on filing (Register 61. No. 13).
4. Certificate of
				  Compliance filed 8-4-61 (Register 61, No. 15).
Note: Authority cited: Sections
					 10176.2
					 and
					 11001,
					 Business and Professions Code; Sections
					 3081.095 and
					 3081.096, Civil
					 Code.
California Code of Regulations › Title 10 - Investment › Chapter 6 - Real Estate Commissioner › Article 16 - Mortgage Loan Brokerage › Section 2849.7 - Dishonest Dealing Defined. [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1. New section
				  filed 2-20-61 as an emergency; effective upon filing (Register 61, No.
				  4).
2. Amendment filed 6-16-61 as an emergency; effective upon
				  filing. Certificate of Compliance--Gov. Code, Sec.
				  11422.1, included (Register 61.
				  No. 12).
3. Amendment filed 7-31-61 as an emergency; effective on
				  filing (Register 61, No. 13).
4. Amendment filed 7-31-61 as an
				  emergency; effective on filing. Certificate of Compliance filed 8-4-61
				  (Register 61, No. 15).
5. Repealer filed 7-1-83; effective thirtieth
				  day thereafter (Register 83, No. 30).
Note: Authority cited: Sections
					 10176.2
					 and
					 11001,
					 Business and Professions Code; Sections
					 3081.095 and
					 3081.096, Civil
					 Code. Additional authority cited: Sections
					 10080,
					 10237.5
					 and
					 10238.1(b),
					 Business and Professions Code.
California Code of Regulations › Title 10 - Investment › Chapter 6 - Real Estate Commissioner › Article 16 - Mortgage Loan Brokerage › Section 2849.8 - Reports of Transactions. [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1. New section
				  filed 2-20-61 as an emergency; effective upon filing (Register 61, No.
				  4).
2. Repealer filed 6-16-61 as an emergency; effective upon
				  filing. Certificate of Compliance--Gov. Code, Sec.
				  11422.1, included (Register 61,
				  No. 12).
Note: Authority cited: Sections
					 10176.2
					 and
					 11001,
					 Business and Professions Code; Sections
					 3081.095 and
					 3081.096, Civil
					 Code.
California Code of Regulations › Title 10 - Investment › Chapter 6 - Real Estate Commissioner › Article 16 - Mortgage Loan Brokerage › Section 2849.31 - Treatment of Funds to be Reinvested. [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1. New section
				  filed 2-20-61 as an emergency; effective upon filing (Register 61, No.
				  4).
2. Amendment filed 6-16-61 as an emergency; effective upon
				  filing. Certificate of Compliance--Gov. Code, Sec.
				  11422.1 including (Register 61.
				  No. 12).
3. Repealer filed 7-5-61 as an emergency; effective on
				  filing (Register 61, No. 13).
4. Certificate of Compliance filed
				  8-4-61 (Register 61, No. 15).
California Code of Regulations › Title 10 - Investment › Chapter 6 - Real Estate Commissioner › Article 16.5 - California Foreclosure Prevention Act › Subarticle 1 - Requirements › Section 2850.2 - Eligibility

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) For an
				  applicant to obtain an order of exemption from Civil Code Section
				  2923.52, the
				  comprehensive loan modification program shall, at a minimum, be available for
				  borrowers and residential mortgage loans meeting the following requirements:
(1) The residential mortgage loan to be
				  modified was recorded during the period of January 1, 2003 to January 1,
				  2008.
(2) The borrower occupies the
				  property as his or her principal residence, and occupied the property as his or
				  her principal residence at the time the loan became delinquent.
(3) The loan is in default, and a notice of
				  default has been filed with the county recorder under Civil Code Section
				  2924 for the
				  mortgaged property.
(4) The
				  residential mortgage loan is the first lien on the property, and either the
				  property is not subject to a subordinate lien, the subordinate lien holder has
				  agreed to subordinate to the modified first lien, or an agreement from the
				  subordinate lien holder is not necessary for the first lien to remain in first
				  position upon the modification of the loan.
(5) The mortgaged property is located in
				  California.
(6) The borrower can
				  document assets, income or likelihood of future earnings to establish the
				  ability to repay the modified loan, using customary underwriting criteria and
				  analysis or current industry standards.
(7) The borrower has not surrendered the
				  property.
(8) The borrower has not
				  contracted with an organization, person or entity whose primary business is
				  advising people who have decided to leave their homes regarding how to extend
				  the foreclosure process and avoid their contractual obligations to mortgagees
				  or beneficiaries.
(9) The borrower
				  does not currently have a bankruptcy action pending under Chapter 7, 11, 12, or
				  13 of Title 11 of the United States Code.
California Code of Regulations › Title 10 - Investment › Chapter 6 - Real Estate Commissioner › Article 16.5 - California Foreclosure Prevention Act › Subarticle 1 - Requirements › Section 2850.3 - Availability

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) For an
				  applicant to obtain an order of exemption from Civil Code Section
				  2923.52, the
				  comprehensive loan modification program shall, at a minimum, be made available
				  to any borrower meeting the eligibility requirements of Section
				  2850.2 of these rules who calls,
				  writes, or otherwise communicates with the mortgage loan servicer to notify the
				  servicer of a financial hardship or to explore modifications to an existing
				  loan, and shall be made available to borrowers as part of the contact required
				  under Civil Code Section
				  2923.5.
(b) Every servicer that contacts a borrower
				  in writing under Civil Code Section
				  2923.5 shall
				  notify the borrower of the availability of the servicer's comprehensive loan
				  modification program.
(c) A
				  servicer is not required to comply with this section if the loan is
				  investor-owned and the pooling and servicing agreement or other contract
				  prohibits the servicer from modifying the loan terms in the manner set forth in
				  this article.
1. New
					 section filed 6-1-2009 as an emergency; operative 6-1-2009 (Register 2009, No.
					 23). A Certificate of Compliance must be transmitted to OAL by 11-30-2009 or
					 emergency language will be repealed by operation of law on the following
					 day.
2. New section refiled 12-1-2009 as an emergency; operative
					 12-1-2009 (Register 2009, No. 49). A Certificate of Compliance must be
					 transmitted to OAL by 3-1-2010 or emergency language will be repealed by
					 operation of law on the following day.
3. Certificate of Compliance
					 as to 12-1-2009 order, including amendment of subsection (c), transmitted to
					 OAL 2-22-2010 and filed 4-6-2010 (Register 2010, No.
					 15).
Note: Authority cited: Section
						2923.53(d),
						Civil Code. Reference: Sections
						2923.52 and
						2923.53, Civil
						Code.
California Code of Regulations › Title 10 - Investment › Chapter 6 - Real Estate Commissioner › Article 16.5 - California Foreclosure Prevention Act › Subarticle 1 - Requirements › Section 2850.4 - Program Requirements

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a)
				  For an applicant to obtain an order of exemption from Civil Code Section
				  2923.52, the
				  comprehensive loan modification program shall meet the minimum requirements in
				  Sections 2850.5 and
				  2850.6 of these rules.
1. New
					 section filed 6-1-2009 as an emergency; operative 6-1-2009 (Register 2009, No.
					 23). A Certificate of Compliance must be transmitted to OAL by 11-30-2009 or
					 emergency language will be repealed by operation of law on the following
					 day.
2. New section refiled 12-1-2009 as an emergency; operative
					 12-1-2009 (Register 2009, No. 49). A Certificate of Compliance must be
					 transmitted to OAL by 3-1-2010 or emergency language will be repealed by
					 operation of law on the following day.
3. Certificate of Compliance
					 as to 12-1-2009 order transmitted to OAL 2-22-2010 and filed 4-6-2010 (Register
					 2010, No. 15).
Note: Authority cited: Section
						2923.53(d),
						Civil Code. Reference: Sections
						2923.52 and
						2923.53, Civil
						Code.
California Code of Regulations › Title 10 - Investment › Chapter 6 - Real Estate Commissioner › Article 16.5 - California Foreclosure Prevention Act › Subarticle 1 - Requirements › Section 2850.5 - Loan Modification Features

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) Any residential mortgage loan refinanced
				  under the HOPE for Homeowners Program of the HOPE for Homeowners Act of 2008
				  (Title IV of Division A of the Housing and Economic Recovery Act of 2008
				  (Pub. L.
				  110-289, 122 Stat. 2654, approved July 30, 2008)
				  as amended, and the rules adopted thereunder) is conclusively presumed to meet
				  the minimum requirements for a loan modification under a comprehensive loan
				  modification plan.
(b) Any
				  residential mortgage loan refinanced under the Home Affordable Refinance
				  Program announced by the U.S. Department of the Treasury on February 18, 2009,
				  is conclusively presumed to meet the minimum requirements for a loan
				  modification under a comprehensive loan modification plan.
(c) Anticipated Recovery (NPV) Test
(1) For purposes of determining the
				  anticipated recovery from foreclosure and the anticipated recovery from a loan
				  modification, the net present value of the anticipated recovery shall be based
				  on reasonable assumptions regarding discount rates, property values, costs of
				  foreclosure, costs of modification, and ability of borrowers to pay. A servicer
				  shall have internal or external evidence to support the validity of the
				  assumptions in the calculations. The use of the Net Present Value Model
				  Parameters in the Home Affordable Modification Program Guidelines, including
				  applicable discount rates, cure rates and redefault rates, issued by the
				  Department of the Treasury on March 4, 2009, and any amendments thereto, shall
				  meet the requirements of this section and shall not require additional evidence
				  or support. If a servicer's anticipated recovery (NPV) model differs from the
				  Treasury's Net Present Value Model Parameters, a servicer shall explain the
				  differences in the application and set forth a justification for the
				  differences.
(2) Where the net
				  present value of the anticipated recovery from a loan modification meeting the
				  parameters of this section exceeds the net present value of the anticipated
				  recovery from foreclosure, the servicer shall provide a loan modification to
				  eligible borrowers unless:
(A) A borrower is
				  unable to document his or her ability to repay the loan; or
(B) After reducing the interest rate,
				  extending the amortization period, forbearing principal, or modifying the loan
				  in another manner reasonably designed to facilitate repayment of the loan, the
				  servicer is unable to achieve a loan modification for the borrower that results
				  in a borrower's ability to repay the loan, under customary underwriting
				  criteria and analysis or current industry
				  standards.
California Code of Regulations › Title 10 - Investment › Chapter 6 - Real Estate Commissioner › Article 16.5 - California Foreclosure Prevention Act › Subarticle 2 - Application › Section 2850.7 - Initial Application

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
An applicant shall be temporarily exempt from subdivision
					 (a) of Civil Code Section
					 2923.52 upon
					 the filing of the exemption application set forth in this rule, provided that
					 the application is accepted by the Commissioner as substantially
					 complete.
1. Where to File
(a) Applicants licensed by the Department of
				  Corporations under either the California Finance Lenders Law or the California
				  Residential Mortgage Lending Act, and any other entities servicing residential
				  mortgage loans that are not described in subparagraphs (b) and (c), shall file
				  their application with the Department of Corporations at the following address:
FORECLOSURE EXEMPTIONS -- DEPARTMENT OF CORPORATIONS
320 WEST 4TH STREET, SUITE 750
LOS ANGELES, CA 90013-2344
Applications not filed by mail may be delivered to any of
					 the Department of Corporations' locations.
Alternatively, applications may be submitted to the
					 Department of Corporations through any electronic means that may be made
					 available by the department at its Internet website
					 (www.corp.ca.gov)
(b)
				  Commercial or industrial banks, savings associations, or credit unions
				  organized in this state shall file their application with the Department of
				  Financial Institutions at the following address (for purposes of this
				  regulation, the phrase "organized in this state" means institutions
				  headquartered in this state):
FORECLOSURE EXEMPTIONS -- DEPARTMENT OF FINANCIAL
					 INSTITUTIONS
1810 -- 13TH STREET
SACRAMENTO, CALIFORNIA 95811-7118
Applications may be submitted by electronic mail to
					 foreclosures@ dfi.ca.gov.
(c) Applicants licensed by the Department of
				  Real Estate under the Real Estate Law shall file their application with the
				  Department of Real Estate at the following address:
FORECLOSURE EXEMPTIONS -- DEPARTMENT OF REAL ESTATE
P.O. BOX 187007
SACRAMENTO, CA 95818-7007
Applications may be submitted by electronic mail to
					 foreclosures@ dre.ca.gov.
The inadvertent filing of an application with the incorrect
					 department will not constitute grounds for denial of the
					 application.
California Code of Regulations › Title 10 - Investment › Chapter 6 - Real Estate Commissioner › Article 16.5 - California Foreclosure Prevention Act › Subarticle 2 - Application › Section 2850.8 - Changes to Program After Final Order

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) A servicer may not alter its
				  comprehensive loan modification program after the servicer receives a Final
				  Order from the Commissioner, unless the servicer informs the Commissioner of
				  the change to be made to the program. Any alterations to the program that cause
				  the program to fall out of compliance with the approved program shall require a
				  new application for exemption from the Commissioner. Nothing herein shall
				  prevent a servicer from adding additional features to the modification program
				  where such features are designed to increase the eligible volume of loans to be
				  modified, reduce the amounts of monthly payments to borrowers, or reduce the
				  probability of redefault, provided that the Commissioner receives timely notice
				  of such alteration. Such timely notice shall not be greater than sixty (60)
				  days after the changes to the modification program are proposed or
				  initiated.
(b) A change made by the
				  federal government, or an agent thereof, to a federal program, including but
				  not limited to the Home Affordable Modification Program, the Home Affordable
				  Refinance Program, or the Hope for Homeowners Program, shall not constitute a
				  change to a comprehensive loan modification program and shall not require a new
				  application nor require notice to the Commissioner.
1. New
					 section filed 6-1-2009 as an emergency; operative 6-1-2009 (Register 2009, No.
					 23). A Certificate of Compliance must be transmitted to OAL by 11-30-2009 or
					 emergency language will be repealed by operation of law on the following
					 day.
2. New section refiled 12-1-2009 as an emergency; operative
					 12-1-2009 (Register 2009, No. 49). A Certificate of Compliance must be
					 transmitted to OAL by 3-1-2010 or emergency language will be repealed by
					 operation of law on the following day.
3. Certificate of Compliance
					 as to 12-1-2009 order transmitted to OAL 2-22-2010 and filed 4-6-2010 (Register
					 2010, No. 15).
Note: Authority cited: Section
						2923.53(d),
						Civil Code. Reference: Sections
						2923.52 and
						2923.53, Civil
						Code.
California Code of Regulations › Title 10 - Investment › Chapter 6 - Real Estate Commissioner › Article 16.5 - California Foreclosure Prevention Act › Subarticle 4 - Data Collection › Section 2850.10 - Reports

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) A servicer that
				  obtains a Final Order exempting the servicer from the provisions of subdivision
				  (a) of Civil Code Section
				  2923.52 shall,
				  upon request of the Commissioner, report loan modification data to the
				  Commissioner on a quarterly basis, with the first report due no later than 90
				  days after a mortgage loan servicer obtains a final order from the
				  Commissioner.
(b) The loan
				  modification data shall be reported on the FORECLOSURE PREVENTION LOAN
				  MODIFICATION DATA report form, dated November 25, 2009, hereby incorporated by
				  reference.
(c) A mortgage loan
				  servicer may seek a waiver from all or part of the reporting requirement of
				  this section by requesting a hardship exemption from the Commissioner. A
				  hardship exemption may be granted if a mortgage loan servicer is able to
				  establish one or more of the following:
1.
				  The servicer's volume of loans that are eligible for a comprehensive loan
				  modification program will not be of any reasonable statistical value to the
				  evaluation of the effectiveness of the California Foreclosure Prevention
				  Act.
2. The servicer's
				  infrastructure prevents it from collecting the data requested by the
				  Commissioner, or the necessary changes are cost prohibitive. In granting a
				  hardship exemption under this paragraph, the Commissioner may require a
				  servicer to collect and report on information in the format that the servicer
				  maintains the information or such other format agreed upon between the servicer
				  and the Commissioner.
California Code of Regulations › Title 10 - Investment › Chapter 6 - Real Estate Commissioner › Article 17 - Prepaid Rental Listing Services › Section 2851.2 - Restoration of Surety Bond or Cash Deposit. [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1. New section
				  filed 12-3-80; effective thirtieth day thereafter (Register 80, No.
				  49).
2. Repealer filed 10-26-99; operative 11-25-99 (Register 99,
				  No. 44).
Note: Authority cited: Section
					 10080,
					 Business and Professions Code, Reference: Section
					 10167.7 (Ch. 1051, Statutes of
					 1980, SB 1564), Business and Professions
					 Code.