reglab/statecodes huggingface dataset:
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 3 - Commercial Financing Disclosures › Section 952 - Duties of Financers and Brokers

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) A financer shall:
(1) Provide a copy of compliant disclosures
				to a broker, whenever a financer provides a broker with a specific commercial
				financing offer.
(2) Maintain a
				copy of the evidence of transmission of the disclosures provided by a broker to
				the financer in compliance with subdivision (b) for a period of at least four
				years following the date that the disclosure is presented to the
				recipient.
(3) Develop procedures
				reasonably designed to ensure that recipients receive the disclosures provided
				pursuant to subdivision (a)(1) of this section at the time that a broker
				provides a specific commercial financing offer to a recipient. These procedures
				may include:
(A) Contractual requirements
				that brokers timely provide to the financer documentation of transmission of
				the disclosure (including timing of transmission) to the recipient;
(B) Timely investigation of facts that would
				give a financer reasonable notice that a broker has not provided disclosures to
				recipients as required by subdivision (b); and
(C) Discontinuation of relationships with any
				broker who the financer has found to have engaged in a pattern of noncompliance
				with subdivision (b) of this section.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 3 - Commercial Financing Disclosures › Section 953 - Other Laws

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
The rules of this subchapter are not intended to:
(a) Clarify or interpret existing California
				law with respect to the definitions of loan, sale, and lease, as those terms
				may apply to the commercial financing transactions regulated by this
				subchapter.
(b) Affect the
				Department of Financial Protection and Innovation's authority to regulate any
				person or transaction under other laws under its jurisdiction, except to the
				extent permitted by section
				22805 of the code.
1. New section
				  filed 6-9-2022; operative 12-9-2022 pursuant to Government Code section
				  11343.4(b)(2)
				  (Register 2022, No. 23). Transmission deadline specified in Government Code
				  section
				  11346.4(b)
				  extended 60 calendar days pursuant to Executive Order N-40-20 and an additional
				  60 calendar days pursuant to Executive Order N-71-20. Filing deadline specified
				  in Government Code section
				  11349.3(a)
				  extended 60 calendar days pursuant to Executive Order N-40-20 and an additional
				  60 calendar days pursuant to Executive Order N-71-20.
Note: Authority cited: Sections
					 321 and
					 22804,
					 Financial Code. Reference: Sections
					 22800 and
					 22804,
					 Financial Code.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 3 - Commercial Financing Disclosures › Section 954 - Recipient's Relationship to California

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) The requirement of section
				22802, subdivision (a), of the
				code, applies only to recipients whose business is principally directed or
				managed from California.
(b) For
				the purpose of determining whether a recipient's business is "principally
				directed or managed from California" as described in subdivision (a), a
				provider may rely upon (i) any written representation by the recipient as to
				whether it is principally directed or managed from California, or (ii) the
				business address provided by the recipient in the application for
				financing.
1. New section
				  filed 6-9-2022; operative 12-9-2022 pursuant to Government Code section
				  11343.4(b)(2)
				  (Register 2022, No. 23). Transmission deadline specified in Government Code
				  section
				  11346.4(b)
				  extended 60 calendar days pursuant to Executive Order N-40-20 and an additional
				  60 calendar days pursuant to Executive Order N-71-20. Filing deadline specified
				  in Government Code section
				  11349.3(a)
				  extended 60 calendar days pursuant to Executive Order N-40-20 and an additional
				  60 calendar days pursuant to Executive Order N-71-20.
Note: Authority cited: Sections
					 321 and
					 22804,
					 Financial Code. Reference: Sections
					 22800,
					 22802,
					 22803 and
					 22804,
					 Financial Code.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 3 - Commercial Financing Disclosures › Section 955 - Tolerances

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) An annual
				percentage rate disclosed pursuant to these rules shall be considered accurate
				if:
(1) It is not more than 1/8 of 1
				percentage point below the annual percentage rate determined in accordance with
				subdivision (a) of section
				940;
(2) In an irregular transaction, it is not
				more than ¼ of 1 percentage point below the annual percentage rate
				determined in accordance with subdivision (a) of section
				940. For purposes of this
				paragraph, an irregular transaction is one that includes one or more of the
				following features: multiple advances, irregular payment periods, or irregular
				payment amounts (other than an irregular first period or an irregular first or
				final payment); or
(3) The
				percentage difference between the annual percentage rate determined in
				accordance with subdivision (a) of section
				940 and the annual percentage rate
				disclosed pursuant to sections
				910 through
				917 is 2.5 percent or less. The
				percentage difference shall be calculated as follows: The annual percentage
				rate disclosed pursuant to sections
				910 through
				917 shall be subtracted from the
				annual percentage rate determined in accordance with subdivision (a) of section
				940, and the resulting difference
				shall be divided by rate disclosed pursuant to sections
				910 through
				917 and multiplied by
				100.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 3 - Commercial Financing Disclosures › Section 956 - Funding Recipient Will Receive

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a)
				When a provider provides a disclosure (either directly to the recipient or to a
				broker) under sections
				910 through
				917, and the amount financed is
				greater than the recipient funds, the provider shall also provide a disclosure
				entitled "Itemization of Amount Financed". The disclosure shall be
				substantially similar in form to the example disclosure provided in subdivision
				(b) below, including at a minimum:
(1) The
				recipient funds, described as "Amount Given Directly to You."
(2) The amount credited to the recipient's
				account with the financer, described as "Amount Paid on your Account with Us"
				followed by the account number, if applicable. Where the amount to be credited
				to the recipient's account may vary based upon changes to the outstanding
				balance due on the recipient's account, a disclosure shall be considered
				accurate if it is accurate at the time the disclosure is provided.
(3) Any amounts paid to other persons by the
				financer on the recipient's behalf, each listed on a separate line. The
				disclosure shall identify those persons. The following payees may be described
				using generic or other general terms and need not be further identified: a
				recipient's supplier or retailer, public officials or government agencies,
				credit reporting agencies, appraisers, and insurance companies. Where an amount
				disclosed pursuant to this section may change based upon changes to the
				outstanding balance due under the recipient's other obligations, a provider's
				disclosure of a payoff amount shall be considered accurate if it is accurate at
				the time the disclosure is provided.
(4) The sum of the amounts described in
				paragraphs (a)(1), (2), and (3), described as "Amount Provided to You or on
				Your Behalf", followed by a reference to how the amount was calculated (e.g.,
				"Sum of Items 1-7.").
(5) The
				prepaid finance charge, described as "Prepaid Finance Charge" or "Prepaid
				Finance Charges", as applicable, followed by a description of the purpose of
				the charge or charges (e.g., "Brokerage Fee").
(6) The amount financed, described as "Amount
				Financed", followed by a reference to how the amount was calculated (e.g.,
				"Item 5 minus Item 4.").
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 4 - California Consumer Financial Protection Law › Article 4 - Commercial Financial Products and Services › Section 1060 - Definitions

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
In this article:
(a) "Average" refers to arithmetic
				  mean.
(b) "Commercial financing"
				  has the same meaning as in Financial Code section
				  22800,
				  subdivision (d).
(c) "Commercial
				  financing transaction" means a consummated commercial financing transaction for
				  which a disclosure is provided in accordance with California Code of
				  Regulations, title 10, section
				  920, subdivision (a).
(d)
(1)
				  "Covered entity" means a small business, nonprofit, or family farm whose
				  activities are principally directed or managed from California.
(2) For the purpose of determining whether
				  activities are "principally directed or managed from California," a covered
				  provider may rely on any relevant written representation by the small business,
				  nonprofit, or family farm, including a business address provided in any
				  application or agreement for commercial financing or other financial product or
				  service.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 4 - California Consumer Financial Protection Law › Article 4 - Commercial Financial Products and Services › Section 1061 - Unfair, Deceptive, and Abusive Acts and Practices

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) It is unlawful for a covered provider to
				  engage or have engaged in any unfair, deceptive, or abusive act or practice in
				  connection with the offering or provision of commercial financing or another
				  financial product or service to a covered entity.
(b) An act or practice is unfair if either:
(1)
(A) The
				  act or practice causes or is likely to cause substantial injury to covered
				  entities;
(B) the injury is not
				  reasonably avoidable by covered entities; and
(C) the injury is not outweighed by
				  countervailing benefits to covered entities or to competition.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 4 - California Consumer Financial Protection Law › Article 4 - Commercial Financial Products and Services › Section 1062 - Annual Report

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a)
				  This section does not apply to any covered provider who makes no more than one
				  commercial financing transaction to covered entities in a 12-month period or
				  any covered provider who makes five or fewer commercial financing transactions
				  to covered entities in a 12-month period that are incidental to the business of
				  the covered provider relying on this exemption.
(b) In this section, "type of commercial
				  financing" refers to one of the types of commercial financing listed in
				  California Code of Regulations, title 10, section
				  917, subdivision (a), or, if the
				  commercial financing does not the meet the definition of any of the listed
				  types, an "Other" type.
(c) On or
				  before March 15 of each year, beginning in 2025, any covered provider who
				  offers commercial financing shall file electronically through the department's
				  website a report verified by an authorized officer and containing the following
				  information for activity during the preceding calendar year:
(1) The covered provider's identifying and
				  contact information, including name, any fictitious business names, entity
				  type, mailing address, phone number, email address, website address, and
				  designated contact person.
(2) By
				  type of commercial financing, the total number and total dollar amount of
				  commercial financing transactions with covered entities. The dollar amount of a
				  commercial financing transaction is the "amount financed" as defined in
				  California Code of Regulations, title 10, section
				  900, subdivision (a)(1).
(3) By type of commercial financing, the
				  number of commercial financing transactions with covered entities for the
				  following amounts financed: $10,000 or less, over $10,000 but not over $25,000,
				  over $25,000 but not over $50,000, over $50,000 but not over $100,000, over
				  $100,000 but not over $250,000, and over $250,000 but not over $500,000. The
				  covered provider shall determine the amount financed in a transaction according
				  to the definition of "amount financed" in California Code of Regulations, title
				  10, section
				  900, subdivision (a)(1).
(4) By type of commercial financing and for
				  each interval described in paragraph (3), the minimum, maximum, average, and
				  median annual percentage rate disclosed in disclosures required to comply with
				  California Code of Regulations, title 10, section
				  920, subdivision (a). For a given
				  type of commercial financing and interval, if the covered provider did not
				  provide any disclosures required to comply with section
				  920, subdivision (a), the covered
				  provider is not required to calculate or report the information described in
				  this paragraph and shall so indicate.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 5 - Limited Dividend Housing Corporations [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1. Repealer of
				Subchapter 5 (Sections
				1292-1296) filed 3-20-78:
				effective 30th day thereafter (Register 78, No. 12). For prior history, see
				Register 73, No. 26.
Note: Authority and reference cited: Sections
				  34943
				  and
				  34944,
				  Health and Safety Code.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 5.5 - Health Care Service Plans [Renumbered]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(Originally Printed 6-5-76)
1. Change
				without regulatory effect renumbering former Subchapter 5.5 (sections
				1300.43-1300.826) to new Title 28,
				Division 1, Chapter 1 (sections
				1300.43-1300.826) filed 12-22-2000
				pursuant to section
				100, title 1, California Code of
				Regulations (Register 2000, No. 51).
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 6 - California Financing Law › Article 1 - General Provisions › Section 1400 - Offices of Division. [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1. Repealer
					 of subchapter 6 and new subchapter 6 (§
											1400-1413,
					 1420,
					 1421,
					 1425-1435,
					 1445-1460,
					 1475-1478,
					 1485-1498,
					 1510-1517,
					 1525,
					 1526,
					 1535-1542,
					 1550-1558,
					 1565-1569,
					 1570) filed 3-3-71 as an
					 emergency; effective upon filing. Certificate of Compliance included (Register
					 71, No.10). For prior history see Registers 53, No. 2 and 70, No.
					 48.
2. Repealer filed 7-3-75 as procedural and organizational;
					 effective upon filing (Register 75, No. 27).
3. Amendment of
					 subchapter 6 heading and new NOTE filed 2-21-85; effective thirtieth day
					 thereafter (Register 85, No. 8).
4. Change without regulatory effect
					 amending first NOTE in subchapter 6 filed 6-3-94 pursuant to title 1, section
					 100, California Code of
					 Regulations (Register 94, No. 22).
5. Change without regulatory
					 effect amending subchapter 6 heading and NOTES filed 6-14-95 pursuant to
					 section 100, title 1, California Code of
					 Regulations (Register 95, No. 24).
6. Amendment of subchapter 6 NOTE
					 filed 9-23-2009; operative 10-23-2009 (Register 2009, No. 39).
7.
					 Amendment of subchapter heading filed 8-5-2021; operative 10-1-2021 (Register
					 2021, No. 32). Transmission deadline specified in Government Code section
					 11346.4(b)
					 extended 60 calendar days pursuant to Executive Order N-40-20 and an additional
					 60 calendar days pursuant to Executive Order N-71-20. Filing deadline specified
					 in Government Code section
					 11349.3(a)
					 extended 60 calendar days pursuant to Executive Order N-40-20 and an additional
					 60 calendar days pursuant to Executive Order
					 N-71-20.
Note: Authority cited for Subchapter 6: Sections
						22400 and
						24400,
						Financial Code. Issuing agency: Commissioner of
						Corporations.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 6 - California Financing Law › Article 1 - General Provisions › Section 1401 - General Information: Where Obtainable. [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1. Repealer
					 filed 12-3-81; effective thirtieth day thereafter (Register 81, No.
					 49).
Note: Authority cited: Section
						22400,
						Financial Code.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 6 - California Financing Law › Article 1 - General Provisions › Section 1402 - Communications to Department. [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1. Repealer
					 filed 12-3-81; effective thirtieth day thereafter (Register 81, No.
					 49).
Note: Authority cited: Section
						22400,
						Financial Code.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 6 - California Financing Law › Article 1 - General Provisions › Section 1403 - Exhibits Previously Filed. [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1. Repealer
					 filed 12-3-81; effective thirtieth day thereafter (Register 81, No.
					 49).
Note: Authority cited: Section
						22400,
						Financial Code.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 6 - California Financing Law › Article 1 - General Provisions › Section 1405 - Rulings. [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1. Repealer
					 filed 12-3-81; effective thirtieth day thereafter (Register 81, No.
					 49).
Note: Authority cited: Section
						22400,
						Financial Code.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 6 - California Financing Law › Article 1 - General Provisions › Section 1406 - Other Business. [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1. Repealer
					 filed 12-3-81; effective thirtieth day thereafter (Register 81, No.
					 49).
Note: Authority cited: Section
						22400,
						Financial Code. Reference: Sections
						22404,
						22458,
						22458.1 and
						24404,
						Financial Code.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 6 - California Financing Law › Article 1 - General Provisions › Section 1408 - Waivers Prohibited

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a)
				  A finance company shall not require or permit a borrower to waive any statutory
				  provision of the Law for his/her benefit, including any notice which the law
				  requires to be given to the borrower (however, any notice may be given by
				  registered mail, directed to his/her last known address), nor shall a finance
				  company require or permit a borrower to waive any mandatory provision of these
				  rules and regulations.
(b) A
				  program administrator shall not require or permit a property owner to waive any
				  statutory provision of the Law, Streets and Highways Code sections
				  5898.16
				  or
				  5898.17,
				  or chapter 29.1 (commencing with section
				  5900) of part 3 of division 7 of
				  the Streets and Highways Code, for his or her benefit, including any notice
				  which any law requires to be given to the property owner, nor shall a program
				  administrator require or permit a property owner to waive any mandatory
				  provision of these rules and regulations, unless the law or regulation
				  expressly authorizes a waiver.
1. Editorial
					 correction of NOTE filed 10-13-82 (Register 82, No. 42).
2.
					 Amendment filed 12-29-83; effective thirtieth day thereafter (Register 83, No.
					 53).
3. Amendment filed 2-21-85; effective thirtieth day thereafter
					 (Register 85, No. 8).
4. Change without regulatory effect amending
					 section and NOTE filed 6-14-95 pursuant to section
					 100, title 1, California Code of
					 Regulations (Register 95, No. 24).
5. Amendment of section and NOTE
					 filed 8-5-2021; operative 10-1-2021 (Register 2021, No. 32). Transmission
					 deadline specified in Government Code section
					 11346.4(b)
					 extended 60 calendar days pursuant to Executive Order N-40-20 and an additional
					 60 calendar days pursuant to Executive Order N-71-20. Filing deadline specified
					 in Government Code section
					 11349.3(a)
					 extended 60 calendar days pursuant to Executive Order N-40-20 and an additional
					 60 calendar days pursuant to Executive Order
					 N-71-20.
Note: Authority cited: Section
						22150,
						Financial Code. Reference: Sections
						22001 and
						22689,
						Financial Code; and Sections
						5898.16,
						5898.17,
						5913,
						5914,
						5922,
						5923,
						5924,
						5925,
						5926,
						5940
						and
						5954,
						Streets and Highways Code.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 6 - California Financing Law › Article 1 - General Provisions › Section 1410 - Responsibility for Acts of Employees. [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1. Repealer
					 filed 12-3-81; effective thirtieth day thereafter (Register 81, No.
					 49).
Note: Authority cited: Section
						22400,
						Financial Code.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 6 - California Financing Law › Article 1 - General Provisions › Section 1411 - Criminal Actions: Report to Commissioner

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) A licensee shall immediately report in
				  writing to the commissioner any criminal action filed against such company or
				  its directors, officers or management personnel.
(b) A licensee whose license record is in
				  NMLS, including a mortgage loan originator licensee, shall file the information
				  in subdivision (a) with the NMLS on Form MU1 and MU2, as applicable, in
				  accordance with its procedures for transmission to the Commissioner.
1. Amendment
					 filed 12-3-81; effective thirtieth day thereafter (Register 81, No.
					 49).
2. Editorial correction of NOTE filed 10-13-82 (Register 82,
					 No. 42).
3. Amendment of NOTE filed 2-21-85; effective thirtieth day
					 thereafter (Register 85, No. 8).
4. Change without regulatory effect
					 amending NOTE filed 6-14-95 pursuant to section
					 100, title 1, California Code of
					 Regulations (Register 95, No. 24).
5. Amendment of section and NOTE
					 filed 4-1-2010 as an emergency; operative 7-31-2010 (Register 2010, No. 14). A
					 Certificate of Compliance must be transmitted to OAL by 9-28-2010 or emergency
					 language will be repealed by operation of law on the following
					 day.
6. Editorial correction of HISTORY 5 (Register 2010, No.
					 40).
7. Amendment of section and NOTE refiled 9-28-2010 as an
					 emergency, including repealer of subsection (c); operative 9-28-2010 (Register
					 2010, No. 40). A Certificate of Compliance must be transmitted to OAL by
					 12-27-2010 or emergency language will be repealed by operation of law on the
					 following day.
8. Amendment of section and NOTE refiled 12-23-2010
					 as an emergency; operative 12-23-2010 (Register 2010, No. 52). A Certificate of
					 Compliance must be transmitted to OAL by 3-23-2011 or emergency language will
					 be repealed by operation of law on the following day.
9. Certificate
					 of Compliance as to 12-23-2010 order, including amendment of subsection (a),
					 transmitted to OAL 3-14-2011 and filed 4-25-2011; amendments operative
					 5-25-2011 (Register 2011, No. 17).
10. Amendment of section and NOTE
					 filed 8-5-2021; operative 10-1-2021 (Register 2021, No. 32). Transmission
					 deadline specified in Government Code section
					 11346.4(b)
					 extended 60 calendar days pursuant to Executive Order N-40-20 and an additional
					 60 calendar days pursuant to Executive Order N-71-20. Filing deadline specified
					 in Government Code section
					 11349.3(a)
					 extended 60 calendar days pursuant to Executive Order N-40-20 and an additional
					 60 calendar days pursuant to Executive Order
					 N-71-20.
Note: Authority cited: Sections
						22108 and
						22150,
						Financial Code. Reference: Sections
						22108,
						22109,
						22109.1,
						22701,
						22705 and
						22714,
						Financial Code.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 6 - California Financing Law › Article 1 - General Provisions › Section 1412 - Subterfuge to Violate Laws or Rules is Grounds for Suspension or Revocation. [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1. Repealer
					 filed 12-3-81; effective thirtieth day thereafter (Register 81, No.
					 49).
Note: Authority cited: Sections
						22400 and
						24400,
						Financial Code.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 6 - California Financing Law › Article 1 - General Provisions › Section 1413 - Authorization to Act as a Broker. [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1. Repealer
					 filed 12-3-81; effective thirtieth day thereafter (Register 81, No.
					 49).
Note: Authority cited: Section
						22400,
						Financial Code. Reference: Section
						22416,
						Financial Code.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 6 - California Financing Law › Article 1 - General Provisions › Section 1414 - Supervision of Mortgage Loan Originators

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) Every mortgage lender, mortgage broker,
				  and mortgage lender and broker shall exercise diligent supervision over the
				  mortgage loan origination and lending activities of every mortgage loan
				  originator that it sponsors.
(b)
				  Every mortgage loan originator employed by a mortgage lender, mortgage broker,
				  or mortgage lender and broker shall be subject to the supervision of a branch
				  manager designated by such mortgage lender, mortgage broker, or mortgage lender
				  and broker. Every branch manager shall be identified on Form MU3 and shall
				  submit a Form MU2 to NMLS.
(c)
				  Every mortgage lender, mortgage broker, and mortgage lender and broker shall
				  establish, maintain and enforce written procedures, a copy of which shall be
				  kept in each business office, that set forth the procedures adopted by the
				  mortgage lender, mortgage broker, and mortgage lender and broker to comply with
				  the duties imposed by this section.
(d) Every mortgage lender, mortgage broker,
				  and mortgage lender and broker shall designate a Supervisor, an individual who
				  shall:
(1) Supervise and periodically review
				  the activities of the branch managers designated pursuant to subsection (b) of
				  this section;
(2) Periodically
				  inspect each business office of the mortgage lender, mortgage broker, or
				  mortgage lender and broker to ensure that the written procedures are enforced;
				  and
(3) In the event a mortgage
				  lender, mortgage broker, or mortgage lender and broker does not have any branch
				  offices, the supervisor shall directly supervise and review the activities of
				  the mortgage loan originators.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 6 - California Financing Law › Article 2 - Applications › Section 1420 - Additional Information. [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1. Repealer
					 filed 12-3-81; effective thirtieth day thereafter (Register 81, No.
					 49).
Note: Authority cited: Section
						22400,
						Financial Code. Reference: Sections
						22201 and
						24201,
						Financial Code.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 6 - California Financing Law › Article 2 - Applications › Section 1421 - Filing Date of Application in Case of Notification of Deficiency. [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1. Repealer
					 filed 12-3-81; effective thirtieth day thereafter (Register 81, No.
					 49).
Note: Authority cited: Section
						22400,
						Financial Code. Reference: Section
						22210,
						Financial Code.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 6 - California Financing Law › Article 2 - Applications › Section 1422.3 - Certain Consumer Lenders and Brokers Not Exempt from Licensure

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) A nondepository
				  lender or broker that engages in the business of making or brokering consumer
				  loans in this state is not exempt from licensure under subdivision (a) of
				  section
				  22050 of
				  the Financial Code unless that nondepository lender or broker is a bank, trust
				  company, savings and loan association, insurance premium finance agency, credit
				  union, small business investment company, community advantage lender,
				  California business and industrial development corporation when acting under
				  federal law or other state authority, or a licensed pawnbroker when acting
				  under the authority of that license.
(b) For purposes of this section,
				  nondepository "lender or broker" means a finance lender as defined in section
				  22009 of
				  the Financial Code or a broker as defined in section
				  22004 of
				  the Financial Code, and the finance lender or broker is also (1) a bank holding
				  company or subsidiary of a bank holding company, as defined in chapter 17 of
				  title 12 of the United States Code (commencing with section
				  1841), (2) a savings and loan
				  holding company or a subsidiary of a savings and loan holding company, as
				  defined in section
				  10 of the Home Owners' Loan Act
				  (12 U.S.C. §
											1467a), or (3) a subsidiary of a bank, trust
				  company, savings association or credit union, where the terms "bank," "trust
				  company," "savings association" and "credit union" have the definitions
				  ascribed to such terms in chapter 1 of division 1 of the Financial Code, and
				  the term "subsidiary" means a subsidiary as defined in title 10, section
				  10.170 of the California Code of
				  Regulations. For avoidance of doubt, the term "bank" includes a national bank,
				  as such term is defined in section
				  189 of the
				  Financial Code, and the term "savings association" includes a federal savings
				  association or federal savings bank that is chartered under section
				  5 of the Home Owners' Loan Act
				  (12 U.S.C. §
											1464).
(c) This section shall become operative 180
				  days after the effective date of this section.
1. New
					 section filed 12-4-2015; effective 4-1-2016; operative 9-28-2016 pursuant to
					 Government Code section
					 11343.4(b)(2)
					 (Register 2015, No. 49).
Note: Authority cited: Section
						22150,
						Financial Code. Reference: Sections
						22004,
						22009,
						22050 and
						22100,
						Financial Code.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 6 - California Financing Law › Article 2 - Applications › Section 1422.4 - Electronic Filings

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a)
				  DESIGNATION: The Commissioner designates the Nationwide Multistate Licensing
				  System (NMLS) owned and operated by the State Regulatory Registry LLC (SRR), a
				  wholly-owned subsidiary of the Conference of State Bank Supervisors (in
				  cooperation with the American Association of Residential Mortgage Regulators)
				  to receive and store filings, obtain fingerprints, obtain credit reports, and
				  collect related fees from applicants and licensed program administrators,
				  finance companies, and mortgage loan originators on behalf of the
				  Commissioner.
(b) USE OF NMLS:
(1) All program administrator, mortgage
				  lender, mortgage broker, mortgage lender and broker, and mortgage loan
				  originator applications, amendments, reports, notices, related filings,
				  renewals, authorizations, and fees required to be filed with the Commissioner
				  shall be filed electronically with and transmitted to NMLS, except as otherwise
				  indicated in subchapter 6 of these rules.
(2) For all finance lenders and brokers
				  applying for licensure on or after October 1, 2021, all applications,
				  amendments, reports, notices, related filings, renewals, authorizations, and
				  fees required to be filed with the Commissioner shall be filed electronically
				  with and transmitted to NMLS, except as otherwise indicated in this
				  subchapter.
(3) For all finance
				  lenders and broker licensees not currently on NMLS, on or before December 31,
				  2021, the licensee shall transition onto NMLS by filing an application in NMLS
				  in accordance with section
				  1422.5 of these rules. After the
				  licensee has transitioned onto NMLS, all applications, amendments, reports,
				  notices, related filings, renewals, authorizations, and fees required to be
				  filed with the Commissioner shall be filed electronically with and transmitted
				  to NMLS, except as otherwise indicated in this subchapter.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 6 - California Financing Law › Article 2 - Applications › Section 1422.4.1 - Share Arrangements with Other Governmental Agencies

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
For purposes of Section
					 22105.3 of
					 the Financial Code, the Commissioner is authorized to share any information or
					 material that has been submitted to NMLS to any governmental agency, including,
					 but not limited to the California Attorney General, the California Department
					 of Justice, the U.S. Department of Justice, the U.S. Department of Housing and
					 Urban Development, including the Federal Housing Administration, the Federal
					 Consumer Financial Protection Bureau, the Federal Bureau of Investigation,
					 state, local, or federal regulatory agencies, state attorneys general, and
					 county district attorney's offices. The information or material that is shared
					 with a governmental agency shall be accomplished without the loss of privilege
					 or the loss of confidentiality protections provided by law.
1. New
					 section filed 4-1-2010 as an emergency; operative 4-1-2010 (Register 2010, No.
					 14). A Certificate of Compliance must be transmitted to OAL by 9-28-2010 or
					 emergency language will be repealed by operation of law on the following
					 day.
2. New section refiled 9-28-2010 as an emergency; operative
					 9-28-2010 (Register 2010, No. 40). A Certificate of Compliance must be
					 transmitted to OAL by 12-27-2010 or emergency language will be repealed by
					 operation of law on the following day.
3. New section refiled
					 12-23-2010 as an emergency; operative 12-23-2010 (Register 2010, No. 52). A
					 Certificate of Compliance must be transmitted to OAL by 3-23-2011 or emergency
					 language will be repealed by operation of law on the following
					 day.
4. Certificate of Compliance as to 12-23-2010 order, including
					 amendment of section heading and amendment of section and NOTE, transmitted to
					 OAL 3-14-2011 and filed 4-25-2011; amendments operative 5-25-2011 (Register
					 2011, No. 17).
Note: Authority cited: Sections
						22105.3 and
						22150,
						Financial Code. Reference: Section
						1798.24, Civil
						Code; and Sections
						22105.1,
						22105.2,
						22105.3 and
						22105.4,
						Financial Code.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 6 - California Financing Law › Article 2 - Applications › Section 1422.4.5 - Request for Confidential Treatment

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
A mortgage lender, broker, mortgage lender and broker,
					 program administrator, and mortgage loan originator applicant may request that
					 certain documents, or parts thereof, be treated confidentially. A request for
					 confidentiality shall be in writing and made pursuant to section
					 250.10 of Article 1 of Subchapter
					 1 of these rules. If a request for confidential treatment is granted or denied,
					 the person making such request will be notified in writing.
1. New
					 section filed 4-25-2011; operative 5-25-2011 (Register 2011, No.
					 17).
2. Amendment filed 8-5-2021; operative 10-1-2021 (Register
					 2021, No. 32). Transmission deadline specified in Government Code section
					 11346.4(b)
					 extended 60 calendar days pursuant to Executive Order N-40-20 and an additional
					 60 calendar days pursuant to Executive Order N-71-20. Filing deadline specified
					 in Government Code section
					 11349.3(a)
					 extended 60 calendar days pursuant to Executive Order N-40-20 and an additional
					 60 calendar days pursuant to Executive Order
					 N-71-20.
Note: Authority cited: Sections
						22105.3 and
						22150,
						Financial Code. Reference: Section
						1798.24, Civil
						Code; and Sections
						22105.1,
						22105.3 and
						22105.4,
						Financial Code.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 6 - California Financing Law › Article 2 - Applications › Section 1422.5 - License Application for Mortgage Lenders, Mortgage Brokers, and Mortgage Lenders and Brokers

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
The procedures set forth in this section are applicable to
					 any person that is required to be licensed under section
					 22100, subdivision (a), or section
					 22100.5 of the Code, and that is
					 required to use NMLS under section
					 1422.4 of these rules. Except as
					 otherwise provided in subchapter 6 of these rules, a person subject to the
					 requirements of this section is not subject to the requirements of section
					 1422 of these rules.
(a) INITIAL APPLICATION: The application for
				  a license under subdivision (a) of section
				  22100 of the Code or section
				  22100.5 of the Code, and any
				  amendment to such application under section
				  1409.1 of these rules shall be
				  filed upon Form MU1 (NMLS Company Form), in accordance with the instructions of
				  NMLS for transmission to the Commissioner. All exhibits and supporting
				  documents related to the application or amendment shall also be filed with
				  NMLS, in accordance with the instructions of NMLS, for transmission to the
				  Commissioner. Exhibits that cannot be submitted through NMLS shall be submitted
				  directly to the Commissioner. The notices set forth in section
				  1422.7 of these rules are part of
				  every application. An applicant shall provide the following information,
				  exhibits and documentation in the manner provided:
(1) An applicant shall identify all
				  fictitious business names on Form MU1.
(A)
				  For each fictitious business name, an applicant shall upload to NMLS a copy of
				  the Fictitious Business Name Statement bearing the seal of the county
				  clerk.
(B) An applicant may not use
				  a fictitious business name until the Commissioner approves the use of the name.
				  An applicant may not permit a mortgage loan originator sponsored by the
				  applicant or a branch office to use any name not approved by the
				  Commissioner.
(C) Every applicant
				  and licensee shall comply with the rules governing the filing of a fictitious
				  business name set forth in Business and Professions Code section
				  17900-
				  17930.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 6 - California Financing Law › Article 2 - Applications › Section 1422.6 - Mortgage Loan Originator Application Procedures

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) ESTABLISHING A RELATIONSHIP IN NMLS: A
				  licensed mortgage lender, mortgage broker, or mortgage lender and broker shall
				  sponsor in NMLS each mortgage loan originator employed by it. To sponsor a
				  mortgage loan originator, a mortgage lender, mortgage broker, or mortgage
				  lender and broker applicant or licensee must:
(1) Obtain a unique identifier through
				  NMLS,
(2) Obtain for its records,
				  evidence that each mortgage loan originator meets the qualification
				  requirements of Section
				  1422.6.1 of Subchapter 6 of these
				  rules, and
(3) Ascertain (by
				  investigation) the character, business reputation and experience of any
				  individual mortgage loan originator, prior to executing any transaction on
				  behalf of the mortgage lender, mortgage broker, or mortgage lender and broker.
				  Evidence of compliance with this paragraph shall be maintained as a part of the
				  records of the licensee as required by Sections
				  1425 and
				  1426 of Subchapter 6 of these
				  rules.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 6 - California Financing Law › Article 2 - Applications › Section 1422.6.1 - Qualifications of Mortgage Loan Originator Applicants

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
Every applicant for a mortgage loan originator license
					 shall meet the requirements of this section.
(a) QUALIFIED WRITTEN TEST: Every applicant
				  for a mortgage loan originator license shall pass a qualified written test
				  developed or otherwise deemed acceptable by the Nationwide Mortgage Licensing
				  System and Registry and administered by a test provider approved by the
				  Nationwide Mortgage Licensing System and Registry. The qualified written test
				  shall consist of:
(1) the national component
				  and the California state component; or
(2) the national component and the uniform
				  state test; or
(3) the national
				  component with uniform state content.
An applicant shall abide by the rules, policies and
					 procedures of the Nationwide Mortgage Licensing System and Registry in the
					 administration of the test.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 6 - California Financing Law › Article 2 - Applications › Section 1422.6.2 - Evidence of Financial Responsibility

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) The Commissioner's finding required by
				  section 22109.1, subdivision (c) of the
				  California Financing Law relates to any matter, personal or professional, that
				  may impact upon an applicant's propensity to operate honestly, fairly, and
				  efficiently when engaging in the role of a mortgage loan originator.
(b) An applicant for a mortgage loan
				  originator license shall authorize NMLS to obtain the applicant's current
				  credit report. The credit report will be used as needed to validate the
				  applicant's responses to the electronic application form, in order to support
				  the Commissioner's finding required by section
				  22109.1, subdivision (c) of the
				  California Financing Law.
(c) An
				  applicant may be precluded from obtaining a mortgage loan originator license
				  where his or her personal history includes:
(1) Any liens or judgments for fraud,
				  misrepresentation, dishonest dealing, and/or mishandling of trust funds,
				  or
(2) Other liens, judgments, or
				  financial or professional conditions that indicate a pattern of dishonesty on
				  the part of the applicant.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 6 - California Financing Law › Article 2 - Applications › Section 1422.6.3 - Continuing Education and Renewal Procedures for Mortgage Loan Originators

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) A mortgage loan
				  originator license shall be renewed on an annual basis between November 1 and
				  December 31. A license not renewed during the specified time period shall be
				  deemed a lapsed or expired license. A mortgage loan originator with a lapsed or
				  expired license may not engage in business as a mortgage loan originator until
				  the mortgage loan originator's license is reinstated pursuant to Section
				  1422.11 of Subchapter 6 of these
				  rules.
(b) To renew a license under
				  subsection (a) of this rule, a licensed mortgage loan originator shall pay a
				  renewal fee ($300), comply with all submission requests by the Commissioner,
				  and complete at least eight hours of NMLS approved continuing education on or
				  before December 31st of every year, which shall include the following:
(1) Three hours of instruction on federal law
				  and regulations,
(2) Two hours of
				  ethics, which shall include instruction on fraud, consumer protection and fair
				  lending issues,
(3) Two hours of
				  training related to lending standards for the nontraditional mortgage product
				  marketplace, and
(4) One hour of
				  training related to relevant California law and
				  regulations.