DIVISION 20. CALIFORNIA RESIDENTIAL MORTGAGE LENDING ACT [50000. - 50706.]
Division 20 added by Stats. 1994, Ch. 994, Sec. 7.
§§ 50000–50706 · 100 sections
CHAPTER 1. General §§ 50000–50006 · 10 sections
- § 50000 This division will be known and may be cited as the California Residential Mortgage Lending Act.
- § 50001 Unless the context otherwise requires, the definitions in this chapter apply throughout this division.
- § 50002 (a) No person shall engage in the business of making residential mortgage loans or servicing residential mortgage loans, in this state, without first obtaining…
- § 50002.5 (a) Every licensee engaging in the business of making, servicing, or making and servicing residential mortgage loans shall require that every mortgage loan…
- § 50003 (a) “Annual audit” means a certified audit of the licensee’s books, records, and systems of internal control performed by an independent certified public…
- § 50003.5 (a) “Mortgage loan originator” means an individual who, for compensation or gain, or in the expectation of compensation or gain, takes a residential mortgage…
- § 50003.6 (a) A loan processor or underwriter who does not represent to the public, through advertising or other means of communicating or providing information,…
- § 50004 “Fraud,” “deceit,” and “defraud” are not limited to common law fraud or deceit.
- § 50005 This division creates and authorizes a class of exempt persons pursuant to Section 1 of Article XV of the California Constitution.
- § 50006 No person subject to this law shall use in its name “bank,” “trust,” “trustee,” “loan association,” or related terms. This section does not apply to any person…
CHAPTER 2. Licensing: Residential Mortgage Lender §§ 50120–50129 · 10 sections
- § 50120 (a) A residential mortgage lender shall file an application for licensure under this chapter with the commissioner to make or service residential mortgage…
- § 50121 The commissioner shall issue a residential mortgage lender license upon the satisfaction of all of the following: (a) The filing with the commissioner of a…
- § 50122 (a) Except as provided in Section 50120, the information provided on an application for a residential mortgage lender, residential mortgage servicer, or…
- § 50123 (a) A residential mortgage lender license shall remain in effect until suspended, surrendered, or revoked. (b) A residential mortgage lender licensee that…
- § 50124 (a) A residential mortgage lender or servicer shall do all of the following: (1) Maintain staff adequate to meet the requirements of this division, as…
- § 50125 The commissioner may refuse to issue a residential mortgage lender or servicer license if any of the following apply: (a) The applicant is not in material…
- § 50126 (a) Upon reasonable notice and opportunity to be heard, the commissioner may deny an application for any of the following reasons: (1) A false statement of a…
- § 50127 The proceedings for a denial of a license shall be conducted in accordance with Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of…
- § 50128 As used in this act, the term “principal officer” means an officer with direct responsibility for the conduct of the residential mortgage lender or servicer…
- § 50129 (a) A residential mortgage lender or servicer licensed under this chapter may, under the authority of that license and subject to the provisions of this…
CHAPTER 3. Licensing: Residential Mortgage Loan Servicer § 50130 · 1 section
- § 50130 (a) A mortgage servicer shall file an application for licensure under this chapter with the commissioner to service mortgage loans in this state by satisfying…
CHAPTER 3.5. Mortgage Loan Originators §§ 50140–50146 · 7 sections
- § 50140 (a) An applicant for a license as a mortgage loan originator shall apply by submitting the uniform form prescribed for that purpose by the Nationwide Mortgage…
- § 50141 (a) The commissioner shall deny an application for a mortgage loan originator license unless the commissioner makes at a minimum the following findings: (1)…
- § 50142 (a) An applicant for a mortgage loan originator license shall complete at least 20 hours of education approved in accordance with subdivision (b). The…
- § 50143 (a) An applicant for a mortgage loan originator license shall pass a qualified written test developed or otherwise deemed acceptable by the Nationwide Mortgage…
- § 50144 (a) A mortgage loan originator shall comply with the requirements of this section on or before December 31 of every year. (b) The minimum standards for license…
- § 50145 (a) A licensed mortgage loan originator shall complete at least eight hours of continuing education approved in accordance with subdivision (b). The continuing…
- § 50146 In addition to any other duties imposed upon the commissioner by law, the commissioner shall require mortgage loan originators to be licensed and registered…
CHAPTER 3.6. Nationwide Mortgage Licensing System and Registry §§ 50150–50152 · 3 sections
- § 50150 (a) The commissioner is authorized to establish relationships or contracts with the Nationwide Mortgage Licensing System and Registry or other entities…
- § 50151 (a) Except as otherwise provided in Section 1512 of the SAFE Act, the requirements under any federal law or the Information Practices Act (Chapter 1…
- § 50152 The commissioner shall report regularly violations of this division, as well as enforcement actions and other relevant information, to the Nationwide Mortgage…
CHAPTER 4. Financial Condition, Transaction and Bond Requirements §§ 50200–50209 · 10 sections
- § 50200 (a) At the end of the licensee’s fiscal year, but in no case more than 12 months after the last audit conducted pursuant to this section, each licensed…
- § 50201 (a) A licensee issued a license for purposes of making or servicing residential mortgage loans, including a licensee employing one or more mortgage loan…
- § 50202 (a) Escrow funds for a purpose authorized by the residential mortgage loan contract (1) shall be subject to and satisfy all applicable state and federal…
- § 50203 (a) A licensee may not require a borrower to pay fees or charges prior to the residential mortgage loan closing, except for: (1) Actual charges to be incurred…
- § 50204 A licensee may not do any of the following: (a) Disburse the mortgage loan proceeds in a form other than direct deposit to the borrower’s or borrower’s…
- § 50205 (a) A residential mortgage lender or servicer licensee shall maintain a surety bond in accordance with this subdivision. The bond shall be used for the…
- § 50206 (a) Prior to a change of control of the business of a licensee, the person wishing to acquire control shall submit an application to the commissioner and pay…
- § 50207 (a) A license, along with any currently effective order of the commissioner approving use of a different name pursuant to Sections 50120 and 50130, shall be…
- § 50208 The license shall state the name of the licensee. If the licensee is a partnership, the license shall state the names of its general partners. If the licensee…
- § 50209 The unique identifier of any licensed mortgage loan originator shall be clearly shown on all residential mortgage loan application forms, solicitations, or…
CHAPTER 5. Administration and Powers of the Commissioner §§ 50301–50333 · 36 sections
- § 50301 Without limitation, the functions, powers, and duties of the commissioner include the following: (a) To issue or refuse to issue a license as provided by this…
- § 50302 (a) As often as the commissioner deems necessary and appropriate, but at least once every 48 months, the commissioner shall examine the affairs of each…
- § 50303 Neither the commissioner nor any employee of the Department of Financial Protection and Innovation shall be precluded from obtaining a residential mortgage…
- § 50304 The commissioner may, from time to time, make, amend, and rescind the rules, forms, and orders that are necessary to carry out the provisions of this law,…
- § 50305 Upon written request from the commissioner, a licensee shall forward authorization to release workpapers of the licensee’s independent auditor to the…
- § 50306 The commissioner may order a licensee that opens a branch office in this state or changes its business location or its locations from which activities subject…
- § 50307 (a) Each residential mortgage lender or servicer licensee shall file a report with the commissioner annually, on or before the first day of March, giving the…
- § 50307.1 The commissioner may, as the commissioner deems necessary, require licensees to provide reports concerning their residential mortgage loan servicing…
- § 50307.2 The commissioner may require a licensee that employs one or more mortgage loan originators to submit to the Nationwide Mortgage Licensing System and Registry…
- § 50308 If any person engaged in the business regulated by this division refers in any advertising to rates of interest, charges, or costs of loans, the commissioner…
- § 50309 The commissioner may require licensees to maintain a file of all advertising copy for a period of 90 days from the date of its use. The file shall be available…
- § 50310 Nothing in this law shall preclude a person, other than a mortgage loan originator, whose license has been suspended or revoked, summarily or otherwise, from…
- § 50311 Nothing in this law shall preclude a person whose license has been suspended or revoked, summarily or otherwise, from making a residential mortgage loan…
- § 50312 The commissioner, in his or her discretion, may honor requests from interested persons for interpretive opinions.
- § 50313 In any proceeding under this law, the burden of proving an exemption or an exception from a definition is upon the person claiming it.
- § 50314 (a) Every person subject to this division shall keep documents and records that will properly enable the commissioner to determine whether the residential…
- § 50315 (a) The commissioner may refer the evidence that is available concerning any violation of this law or of any rule or order adopted under this division to the…
- § 50316 (a) For any licensee, a disciplinary action taken by the State of California, another state, any agency of the federal government, or another country for any…
- § 50316.5 Notwithstanding any other law, any application for licensure, amendment to the application or registration document or notice filed under any of the laws…
- § 50317 (a) Any person who has been convicted of, or pleaded nolo contendere to any crime specified in subdivision (b) within the past 10 years or has been held liable…
- § 50318 (a) The commissioner may, after appropriate notice and opportunity for hearing, by order censure or suspend for a period not exceeding 12 months, or bar from…
- § 50319 (a) If the commissioner, as a result of any examination or from any report made to him or her, shall find that any person subject to this division is in an…
- § 50320 Whenever, in the opinion of the commissioner, a person is engaged, either actually or through subterfuge, in the business of making residential mortgage loans,…
- § 50321 If, after investigation, the commissioner has reasonable grounds to believe that any licensee is violating or has violated its articles of incorporation or any…
- § 50322 If, after investigation, the commissioner has reasonable grounds to believe that any licensee is conducting or has conducted business in an unsafe or injurious…
- § 50323 (a) No order issued pursuant to Section 50321 or 50322 may become final except after notice to the affected licensee of the commissioner’s intention to make…
- § 50324 (a) If, after investigation, the commissioner has reasonable grounds to believe that any person has engaged or is about to engage in any act or practice…
- § 50325 The commissioner may immediately revoke the residential mortgage lender’s, residential mortgage loan servicer’s, or mortgage loan originator’s license if the…
- § 50326 If any licensee fails to do any of the following, the licensee shall forfeit to the people of the state a sum of up to one hundred dollars ($100) for every day…
- § 50327 (a) The commissioner may, after notice and a reasonable opportunity to be heard, deny, decline to renew, suspend, or revoke any license if the commissioner…
- § 50328 Except in the case of an exempt person, whenever the commissioner deems it to be necessary for the public interest, the commissioner has continuous authority…
- § 50329 (a) In making an investigation or examination authorized by this division, the commissioner may, for a reasonable time not exceeding 30 days, control access to…
- § 50330 The authority to make or conduct any examination or investigation may be delegated by the commissioner to any deputy, investigator, examiner, or auditor…
- § 50331 All hearings provided for in this division shall be conducted in accordance with the provisions of Chapter 5 (commencing with Section 11500) of Part 1 of…
- § 50332 Every order, decision, license, or other official act of the commissioner is subject to review, in accordance with law.
- § 50333 (a) The commissioner shall apply the guidance on nontraditional mortgage product risks published on November 14, 2006, by the Conference of State Bank…
CHAPTER 6. Assessments §§ 50400–50402 · 3 sections
- § 50400 The commissioner has the authority to levy assessments for the support of this part as provided for in this chapter.
- § 50401 (a) In addition to other fees and reimbursements required to be paid under this division, each residential mortgage lender or servicer licensee shall pay to…
- § 50402 Notwithstanding subdivision (a) of Section 50401, if the commissioner determines that the charges and assessments set forth in this division for any year are…
CHAPTER 7. Prohibited Practices and Penalties §§ 50500–50513 · 15 sections
- § 50500 Any person who willfully violates any provision of this division, or any rule or order under this division, shall, upon conviction, be subject to a fine of not…
- § 50501 (a) Any person who violates a provision of this division, or any rule or order under this division, shall be liable for a civil penalty not to exceed two…
- § 50501.5 (a) If, upon inspection, examination, or investigation, the commissioner has cause to believe that a licensee or person is violating or has violated any…
- § 50502 It is a violation of this division for any person to make any untrue statement of a material fact in any document filed with the commissioner under this…
- § 50503 (a) It is a violation for any person subject to this law or any director, partner, shareholder controlling an ownership interest of 10 percent or more,…
- § 50504 (a) If an amount other than or in excess of the charges permitted by this division is willfully charged, contracted for, or received, in addition to any other…
- § 50505 Any person who violates any provision of any of the following federal acts or regulations violates this division: (a) The federal Real Estate Settlement…
- § 50506 Any director, officer, partner, trustee, or employee of a licensee, its holding company, or its affiliates who knowingly receives or appropriates any of the…
- § 50507 Any director, officer, partner, trustee, or employee of a licensee, its holding company, or its affiliates who knowingly makes or concurs in making or…
- § 50508 Any director, officer, partner, trustee, or employee of a licensee, its holding company, or its affiliates who makes a false entry in any book or record of the…
- § 50509 Any officer, director, partner, trustee, or employee of any entity who abstracts or misapplies any of the money, funds, or property of a licensee, or…
- § 50510 Nothing in this chapter shall be construed to authorize a criminal prosecution for a violation of a civil statute incorporated by reference into this division.…
- § 50511 The commissioner may, subject to the requirements of subdivisions (b), (c), and (d) of Section 50318, suspend for a period not to exceed 12 months or bar a…
- § 50512 (a) It is unlawful for any person to knowingly alter, destroy, mutilate, conceal, cover up, falsify, or make a false entry in any record, document, or tangible…
- § 50513 (a) The commissioner may do one or more of the following: (1) Deny, suspend, revoke, condition, or decline to renew a mortgage loan originator license for a…
CHAPTER 9. Brokerage Services for Borrowers §§ 50700–50706 · 5 sections
- § 50700 (a) A residential mortgage lender, or a person or employee acting under the authority of a residential mortgage lender’s license, including a mortgage loan…
- § 50701 (a) As soon as practical after a borrower requests that the residential mortgage lender licensee arrange a loan to be made by another institutional lender, and…
- § 50702 (a) The annual report required by Section 50401(a) shall include both of the following: (1) The number and the aggregate principal amount of closed residential…
- § 50703 Notwithstanding Section 10248.3 of the Business and Professions Code, the provisions of Article 7 (commencing with Section 10240) of Chapter 3 of Part 1 of…
- § 50706 (a) Except as provided in subdivision (b), the commissioner has primary regulatory jurisdiction over all transactions in which a licensed residential mortgage…