This law requires real estate brokers in California to provide borrowers with a written statement, including necessary information, within three business days of receiving a loan application. The statement must be signed by both the borrower and the broker, and an exact copy should be given to the borrower. Brokers must keep a signed copy for three years. If any required information is missing, the statement cannot be signed. In cases where brokers lend their own money, they must act like an agent. For federal residential mortgage loans above certain amounts, providing a good faith estimate and other specific disclosures fulfills this requirement.

This law states that the rules in this article apply specifically to loans that are secured by a home, but do not include the rules from Section 10240.

This law defines what a 'dwelling' means in the context of certain mortgage or deed of trust agreements. It includes either a single unit in a condominium or cooperative, or a residential property with four or fewer units owned by someone who has signed the mortgage or deed of trust.

This law requires that real estate brokers follow specific guidelines to manage risks associated with nontraditional and subprime mortgages. These guidelines were laid out by certain regulatory bodies in 2006 and 2007. The commissioner has the authority to implement further regulations to clarify these requirements. Real estate brokers must create and follow policies that meet the objectives of those existing guidelines.

This section explains what must be included in a statement for a loan, which needs approval from a commissioner. It details the estimated maximum costs that the borrower has to pay, such as appraisal and escrow fees. It also covers the broker's fees whether they act as an agent or lender, existing property liens disclosed by the borrower, and other expenses. The statement must also specify the loan's principal, interest rate, and terms, including a warning about potential foreclosure if obligations aren't met. Additionally, it should identify the broker's details and mention if broker-controlled funds are used. The terms for prepayment and insurance requirements, or lack thereof, must be stated, along with a certification if the loan meets specific conditions.

This law states that a lender can't require a borrower to buy credit life or disability insurance as a condition for getting a loan. However, if the borrower agrees, the lender can offer such insurance, provided it’s approved by the Insurance Commissioner and reasonably matches the loan’s amount and term. Also, only one premium for disability insurance can be charged per loan, and insurance can cover multiple borrowers if their incomes are essential for loan repayment. Additionally, lenders can ask borrowers to cover fire and hazard insurance for property security, but only at standard rates. If insurance premiums are paid from loan proceeds, such payments won't affect whether the loan is exempt from certain regulations.

If a broker chooses to lend money that includes any of their own funds, they must inform the borrower by the next business day, and definitely before the loan process is completed.

If a borrower is charged a fee for a property appraisal in a loan deal, the broker must give both the borrower and the lender a copy of the appraisal report by the time the loan is finalized.

If you're taking out a home loan that involves a balloon payment and there's an agreement to extend or refinance the loan that's not in the main loan note, it must be written down. You need to get a special notice before signing the loan. The notice explains what to look out for with balloon payments and mentions where you can find your specific rights and obligations. It must clearly state if the lender or broker is committed to changing the loan terms or if the broker will try to negotiate changes but with no guarantees.

This law sets limits on how much a lender can charge a borrower for different types of costs, expenses, and interest on certain loans. For costs and expenses other than title charges and recording fees, the borrower can be charged up to 5% of the loan amount or $390, whichever is more, but not more than $700 total. Fees for loans secured by a first trust deed are capped at 5% for loans under three years and 10% for three years or more. For other trust deeds, fees are 5% for under two years, 10% for two to three years, and 15% for over three years. If the borrower gets additional funds on an existing loan, the charges are calculated as if it were a new loan with the remaining term. Borrowers cannot be charged interest on loan funds before they receive them or they are deposited in escrow.

This section covers rules about late payment charges on loans secured by mortgages or deeds of trust. A late charge can't be more than 10% of the payment due, but there can be a minimum charge of $5. Charges can only be based on the part of the payment that includes principal and interest. You can't be charged twice for being late on the same payment. If you pay within 10 days of the due date, there's no late fee. For balloon payments, late charges apply if they're more than 10 days late and are calculated differently based on past installments.

This law is about the prepayment of loans secured by a mortgage on a single-family home that the owner lives in. You can pay off the loan early but may have to pay a fee if it's within seven years of getting the loan. In any 12 months, you're allowed to pay up to 20% of what's left on the loan without extra charges. Beyond that 20%, you might face charges equivalent to six months of interest on the extra amount. However, if your home is destroyed in a natural disaster and a state of emergency is declared, you won't have to pay any penalty for prepaying. An 'owner-occupied dwelling' means the person who took out the mortgage must live in the home within 90 days of getting the mortgage.

This law section talks about what happens if a loan doesn’t go through because the borrower didn’t reveal important information about liens or current property titles. If this happens, the borrower has to pay certain costs and a portion of the charges related to the loan process. Additionally, agreements for someone to negotiate loans tied to real estate can only last up to 45 days. If the loan fails and a broker is due any fees, they can’t place a lien on the borrower’s property unless they file a legal case first. But, brokers can place a lien if there’s a voluntary agreement with the borrower, after informing them in writing about any claims for damages.

If you give someone a loan secured by property and it’s for less than three years with installment payments, those payments must be roughly the same amount throughout the loan term. Also, the last payment can’t be more than twice the smallest payment. If the loan is renewed or refinanced, the total costs and charges shouldn’t exceed certain legal limits. This rule doesn’t apply to loans used for building development that meet certain conditions, like having a first trust deed and title insurance.

If you take out a short-term loan, for six years or less, using your home as collateral, your installment payments can't vary too wildly. The biggest payment can't be more than twice the smallest payment. This rule isn't for loans like the ones you get directly from a home seller when buying a house. Also, it applies only if it's your main home: a single unit in a condo or a small building with fewer than three units, where you plan to live within three months of your loan.

This law states that certain rules don't apply to genuine loans that are secured by a first trust deed if the amount is $30,000 or more. Similarly, the rules don't apply to genuine loans secured by a junior lien if the amount is $20,000 or more.

If a borrower is charged more than they should be, according to specific sections of the law, they can sue to get back three times the extra amount plus their court costs and attorney's fees. However, they must file the lawsuit within two years of the overcharge. If the extra charge was an honest mistake, they can only recover the amount overcharged.

This law states that regulations about the maximum charges, interest, and expenses, along with any penalties, must apply to any deal where a third party tries to act as a lender. It also covers any situation where these rules might be dodged or bypassed. Basically, this stops anyone from using tricks to skirt the financial limits and penalties outlined in this article.

This law states that anyone who deals with buying or selling promissory notes, which are backed by real estate, can only charge up to a certain amount. This includes those who sell, buy, or negotiate these notes for a fee, whether directly or through a third party. The maximum charges they can receive are set by another section, Section 10242.

If you're a real estate agent in California, you can only charge specific fees to borrowers. These allowed fees are listed in certain law sections or relate to certain legal processes like paying off a loan. Any other fees must comply with existing civil and procedural codes.

This law says that borrowers cannot give up their rights or remedies under this article. However, they can settle claims honestly. If a loan broker violates the rules, they must return any fees paid by the borrower if asked. If they don't return the money within 20 days, the borrower can sue for more money, including attorney's fees. The written demand starts when it's delivered or mailed. Brokers can avoid liability if they prove any violation was an honest mistake. Borrowers must choose one course of action. If a real estate broker violates insurance provisions, they must refund related commissions to the borrower. Lawsuits need to be filed within two years after the loan term ends. Other legal options are still available in addition to these remedies.

This law says it only applies to certain loans that real estate brokers handle, specifically when they are operating under specific parts of California law that define their activities.