California Code of Regulations › Title 10 - Investment › Chapter 2 - Savings and Loan Commissioner › Subchapter 7 - Operations-Loans › Article 2 - Sale of Loans or Participating Interests Therein › Section 107.202 - Blanket Authority, Sale of Loans and Participating Interests in Loans

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) Subject to the
				  limitations imposed by this section and Section
				  105.201 and any other limitation
				  imposed by law blanket authority is hereby granted to any domestic association
				  to sell its loans or participation interests in loans without prior approval of
				  the commissioner to any purchaser.
(b) Sale with recourse. General rule. All
				  loans and participation interests in loans sold by a domestic association may
				  be sold with recourse.
(c) Mortgage
				  transactions with federally-chartered secondary market agencies. To the extent
				  that it has legal power to do so, an association may enter into, perform and
				  carry out any mortgage transaction with the Federal Home Loan Mortgage
				  Association specified in Section
				  305 of the Federal Home Loan
				  Mortgage Corporation Act, notwithstanding any provision of this Chapter except
				  the net worth requirements of Section
				  105.201.
(d) No loans, or participating interests in
				  loans, shall be sold to or purchased from, directly or indirectly, any of the
				  persons specified in Section
				  5613 of the law or to any
				  corporation in which any director, officer or majority stockholder of the
				  selling or buying or participating association is a stockholder.
(e) Participation interests in pools of
				  loans. Where an association sells or purchases a participating interest in a
				  pool of loans, documentation requirements will be satisfied if:
(1) Access to all loan documentation is
				  provided by the originator/servicer upon request and without charge to any
				  trustee of the pool, the commissioner, the Federal Home Loan Bank Board, or the
				  Federal Savings and Loan Insurance Corporation or their examiners or
				  Supervisory Agents and upon request and subject only to reasonable charges
				  incurred in providing such access to any association investing in the he
				  pool;
(2) The originator/servicer
				  warrants as to each loan in the pool to or for the benefit of each association
				  investing in the pool that as of the date participation interests in the pool
				  were first issued:
(A) no loan was 30 or more
				  days delinquent;
(B) each loan met
				  the requirements for investment by the association;
(C) there were no delinquent tax or
				  assessment liens or mechanics' liens on any collateral for the loans and the
				  collateral was free of substantial damage and in good repair; and
(D) each loan complied with all applicable
				  state and federal laws; and
(3) The originator/servicer has agreed to
				  provide each association investing in the pool a monthly report of loan
				  delinquencies separately indicating the number and aggregate principal amount
				  of loans delinquent one month and two or more months, the book value of any
				  collateral acquired by the pool through foreclosure or other exercise of its
				  security interest in the collateral, and the aggregate dollar amount of loans
				  made by the pool, if any, on the security of the collateral if such loans are
				  loans secured by, and contracts for the sale of, real estate as described in
				  Scheduled Items, Section
				  561.15(c) and (d)
				  of the Insurance Regulations.