Cal. Code Regs. Tit. 10, § 2841 - Mortgage Loan Negotiation
(a) The term "negotiation" as used in Section
10133.1(c) of the Code does not include any of the limited activities described
as follows when done by an employee of a real estate broker under the control,
direction and supervision of the broker:
(1)
Preparing and designing advertising relating to loan transactions for broker
review and written approval prior to its distribution, circulation, use or
publication.
(2) Distributing,
circulating, using or publishing preprinted brochures, flyers, fact sheets or
other written materials relating to loans secured by real property which the
broker can make or negotiate and which have been reviewed and approved in
writing by the broker prior to their being distributed, circulated or
published. Materials subject to this subdivision may not contain the name,
address or telephone number of the nonlicensed employee.
(3) Providing written factual information
about loan terms, conditions or qualification requirements to a prospective
borrower that has been either prepared by the broker, or reviewed and approved
in writing by the broker. A nonlicensed employee may discuss such information
with a prospective borrower in general terms, but may not provide counseling or
advice to a prospective borrower.
(4) Notifying a prospective borrower of the
information needed in order to complete a loan application without providing
counseling or advice to a prospective borrower.
(5) Entering information provided by the
prospective borrower on a pre-printed application form without providing
counseling or advice to a prospective borrower.
(6) Entering information provided by a
prospective borrower or third party into a preformatted computer
database.
(7) Accepting and
providing a receipt on behalf of a broker for funds received from a prospective
borrower for credit or appraisal fees.
(8) Preparing and mailing requests for
verification of employment, verification of deposits, credit reports or
appraisal reports. Obtaining such reports for transmission to the
broker.
(9) Assembling, under the
direction of the broker, materials obtained in the course of a loan transaction
for submission to a prospective lender or loan committee, providing the final
determination as to completeness or compliance is made by the broker.
(10) Communicating with a service provider in
connection with a loan transaction to determine when reports or other
information needed concerning any aspect of the transaction will be delivered,
or when certain services will be performed or completed.
(11) Mailing, delivering, picking up, or
arranging the mailing, delivery, or picking up of documents or instruments
related to the loan transaction, including obtaining signatures to the
documents or instruments from principals, parties or service providers in
connection with the loan transaction, as long as the nonlicensed employee does
not interpret or explain the content, relevance, significance or effect of the
document or signature and such documents or instruments have been reviewed and
approved in writing by the broker.
(12) Contacting a prospective lender to
determine the status of a loan application.
(13) Responding to an inquiry or notifying a
prospective borrower or his or her agent of the status of the loan application
as long as the nonlicensed employee does not interpret or explain the
relevance, significance or effect of that status. A nonlicensed employee may
communicate omissions to a party or principal to the loan as long as the
nonlicensed employee does not interpret or explain the relevance or
significance of those omissions.
(14) Preparing and completing documents and
instruments under the supervision and direction of the broker if the final
documents or instruments will be or have been reviewed and approved in writing
by the broker.
(15) Arranging or
making appointments for third party service providers to enter the real
property securing the loan, or arranging or making appointments for the
prospective borrower or lender to meet with the broker, lender or other party
or service provider in connection with the loan.
(b) As used in this section the terms "loan"
or "loan transaction" mean a loan secured directly or collaterally by a lien on
real property which is a residential mortgage loan transaction, as defined in
Section
50003 of
the Financial Code and where the lender is an institutional lender, as defined
in Section
50003 of
the Financial Code. Other than the acts specifically authorized by this
Section, at no time may the nonlicensed employee perform any acts for which a
real estate license is required within the meaning of Section
10131(d)
of the Business and Professions Code.
(c) As used in this Section and in Section
10133.1(c) of the Code the term "employee" means a person in the service of a
broker under any appointment or contract of hire, express or implied, oral or
written and for whom the broker is obligated to withhold income tax payments
and provide workers compensation insurance and unemployment
insurance.
(d) As used in this
Section, the term "written approval" shall consist of the broker's signature or
initials affixed by the broker to a copy of the instrument being approved along
with the date of the approval. The broker shall retain a copy of the approval
for a period of three years from the date the approval was made. A broker may
delegate to a broker or salesperson employed by the broker the authority to
provide written approval so long as the broker does not relinquish overall
responsibility for supervision of nonlicensed persons acting under this
Section.
Notes
Note: Authority cited: Sections 10080 and 10133.1, Business and Professions Code. Reference: Section 10133.1, Business and Professions Code.
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