This section provides a template for creating a mortgage on real property. It outlines how the document should be structured, including spaces to fill in the date, names of the parties involved (the person giving the mortgage, or 'mortgagor,' and the person receiving it, or 'mortgagee'), as well as a description of the property being mortgaged. It also specifies the amount of money secured by the mortgage, the due date for payment, and terms related to interest or other obligations.

This law states that when you take out a loan secured by your home, lenders can't charge you interest before you actually get the loan money. If there's an escrow, interest can only start one day before you get the money. Without escrow, it's the same rule if a recording request is made. Otherwise, the interest starts when you actually receive the funds. If you want the funds to disburse on a Monday or after a holiday, you can choose to start interest the business day before. You must be notified and agree in writing to any extra interest charges for this timing. This rule doesn't apply to some specific loans covered by another section of the Business and Professions Code.

If you have a mortgage on a home where you live, the lender can't say you're in default or change the terms of your loan just because you take out another loan that is secured using the same property. This applies only to single-family homes where the homeowner actually lives, and they need to start living there within 90 days of signing their mortgage.

This law explains that if a property transfer looks like a complete transfer but is meant to change back under certain conditions, it remains unchanged for anybody except the person who got the property and their direct successors. This change must be recorded properly with the county for others to know about it.

This California law states that for home loans started in 2027 or later, secured by residences with up to four units and having multiple owners, one owner can buy out another's share if there's a divorce or separation, provided they qualify for the loan. This applies only to regular home loans, which aren't backed by the federal government, and where the home is the main residence for the owners.

This law explains how mortgages or deeds of trust on real property can be officially acknowledged and recorded, similar to property grants. It allows for the recording of 'fictitious' mortgages and deeds of trust without needing them to be verified or certified first. These fictitious mortgages can be referred to in real mortgages by providing specific details about where they were recorded, such as the date and location. This ensures that when you record a real mortgage using references to a fictitious one, it serves as a public notice of all its terms, just as if they were fully included in the document. The law maintains that changes made in 1957 were meant to clarify the existing rules, not change them.

This law states that if a borrower agrees to give up certain rights related to real estate loans, such as those dealing with foreclosure processes and debt collection, that agreement is not valid. However, there are exceptions for loans involving bonds and public utilities.

This section defines terms related to real estate transactions. A 'real property security instrument' covers things like mortgages or deeds on property. A 'subordination clause' is a part of these instruments that states the holder agrees to make their claim on the property secondary to someone else's claim under certain conditions. A 'subordination agreement' is a separate document or agreement where the holder consents to make their interest in the property secondary to another interest that would normally rank lower.

This law states that whenever a real property security document includes a subordination clause, it must clearly identify the subordination with 'Subordinated' in bold letters at the top, followed by the instrument type. The document must also include a notice explaining that the security interest might become subordinate to other liens. If the subordination allows for loans used for other purposes than land improvement, the document must have another bold notice above the signature line, stating that the loan might be used for purposes other than improving the land.

This law specifies how a subordination agreement, which changes the priority of liens on property, should be formatted and include certain notices. It must clearly state “Subordination Agreement” at the top. Below that, there must be a notice explaining that the agreement may reduce the priority of a person's security interest in favor of another. Additionally, if the agreement allows for a loan for purposes other than improving the property, a specific notice must be displayed above where the property owner signs, indicating this option.

This section of the law deals with subordination clauses in security interest agreements. If such a clause is included in any new agreements but doesn't meet certain legal requirements, the affected party can choose to void it within two years. However, this option can't be exercised by someone who was already aware of the clause and its terms. To void it, a formal notice must be recorded. Additionally, the affected party can waive their right to void by acknowledging the clause and agreeing to it despite non-compliance.

This law section says that certain rules regarding subordination clauses and agreements don't apply if the loan amount is more than $25,000. Essentially, if you have a subordination agreement tied to a loan that exceeds this amount, those specific rules (from Sections 2953.1 to 2953.4) are not applicable.

This law says that when you buy a single-family home or take out a loan for one, you generally can't be forced to set up a special account to pay taxes or insurance unless specific situations apply, like failing to pay taxes on time, the loan is high-risk, or the home is part of a government program. If an account is set up against the rules, the buyer can cancel it. Also, lenders must give an annual breakdown of how money in these accounts is used. You can request extra statements for a small fee, and any changes to payments must be explained. Violating these rules can lead to fines. Lastly, a 'single-family, owner-occupied dwelling' means the home must be owned and lived in by the borrower within 90 days of the mortgage agreement being signed.

If a lender or person in charge of a payment account for things like property taxes or insurance asks borrowers to put money in an account each month, they can't ask for more than what federal laws allow. The account shouldn't hold more than needed to pay upcoming bills, and any extra should be given back within 30 days unless agreed otherwise. They also can't manage the account in a way that risks unpaid bills or canceled insurance. If anyone suffers harm from not following these rules, they can sue for damages. The rule doesn't affect the loan's validity but applies to accounts made after this law took effect.

If you have a mortgage for a one- to four-family home, the company or person you pay needs to send you a detailed yearly statement by the end of February. This statement shows all your payments for the year, including interest, principal, late fees, any money kept aside for things like taxes or insurance, and any interest that might have been added to these accounts. You should get this statement for free without having to ask for it. If you want more detailed information, you can request additional statements. The term 'mortgagee' covers anyone managing or holding the loan, and 'mortgage' can mean various types of property loans, like a mortgage or a deed of trust.

This law explains the rules for charging late fees on loan payments for single-family homes that the owner occupies. If you pay a mortgage installment late, the fee can't be more than 6% of the payment or $5, whichever is higher. You can't be charged multiple late fees for the same missed payment, and a payment is only considered late if it's overdue by at least 10 days. If you make a full payment on time or within 10 days of the due date, no late fee applies, regardless of past late payments. The rule doesn't apply to credit unions, industrial loan companies, finance lenders, or real estate brokers under certain conditions. The law covers loans made from 1976 onwards and ensures borrowers still need to pay what they owe and lenders keep their rights to collect installments.

This section explains the rules for charging late fees on loan payments secured by real estate. Before charging a late fee, the lender must notify the borrower in writing and give them 10 days to make the missed payment, or include the late fee information in each bill. If a borrower misses another payment, they must be told in advance before any fees are charged, or be given a semiannual summary of the late charges. Notices should be sent to the address the borrower has given, or the address on record if none is specified. If there are multiple borrowers, notifying one is sufficient. Even if the lender doesn't follow these steps, it doesn't waive the borrower's responsibility to meet other loan obligations. These rules only apply to loans made after January 1, 1971, and amendments made in 1975 apply to loans after January 1, 1976.

If you have a mortgage that requires you to have private mortgage insurance, the lender must tell you if you can cancel that insurance. This notice has to be in writing and include specific details like how to cancel, the conditions needed to cancel, and any necessary appraisals. They must give you this information no later than 30 days after closing. Also, you won't be charged for these notices. If the rules are violated, you can take legal action to stop the violation and possibly get triple the damages and your legal costs paid. However, this does not apply to certain loans that have lifelong insurance requirements or are federally insured. If you're affected, you can take action and potentially recover damages.

This law allows borrowers to stop paying private mortgage insurance (PMI) or mortgage guaranty insurance under certain conditions. First, the borrower must request termination in writing, at least two years after the loan started. The loan must be for a personal residence, and the remaining loan balance can't be more than 75% of the property's value, unless a different agreement is made. The property must be current on payments, with no recent payment issues. Some loans, like those under specific public programs, are excluded from this rule. Also, if the loan is sold to institutions like Fannie Mae, their rules on ending insurance apply.

This law requires that when a financial institution, like a bank or credit union, holds money in advance for property-related expenses (such as taxes or insurance) on a single-family to four-family home in California, they must pay at least 2% simple interest per year on the held funds to the borrower. This interest should be added to the borrower's account each year or when the account ends, whichever comes first. Additionally, the institution cannot charge fees that would reduce this interest rate below 2%. However, this rule doesn’t apply to loans made before a certain date or in certain specific regulatory situations. The rule regarding 2% interest only applies to loans made on or after January 1, 1980.

If you take out a loan to buy a home with four units or less, you usually have the right to pay off your loan early, either in part or in full. You might have to pay an extra fee if you do this within the first five years. However, you can prepay up to 20% of the original principal each year without penalty. If you repay more than that annually, the penalty is capped at six months’ interest on the excess amount. But if your home is damaged by a natural disaster declared by the Governor, you won't be charged a prepayment penalty.

If a lender speeds up the repayment terms of a home loan due to property sale, they can't charge extra fees or penalties for early payoff. This rule generally applies to loans secured by homes with four units or fewer. However, if the borrower has agreed in writing to pay a penalty for early payment, this exception kicks in. For loans made from January 1, 1984 onward, borrowers must clearly sign or initial any such agreements, and enforceability needs to be backed by a proven pattern of the lender's behavior respecting those terms.

This law section is about installment loans that are part of open-end credit plans, like certain credit card loans with repayable amounts. It explains key terms and rules about prepaying these loans, meaning paying them off early. Generally, borrowers can prepay their loans at any time. However, for loans paid off within five years, there might be a prepayment charge unless certain conditions are met, like if the property securing the loan is sold or damaged due to a natural disaster. Details about these charges and how to avoid them must be clearly disclosed to borrowers. If the lender does not provide this information correctly, borrowers have the right to rescind, or cancel, the loan agreement. This section applies to loans secured by residential properties with four or fewer units.

This law allows borrowers with certain types of home loans to stop paying for private mortgage insurance if specific conditions are met. These conditions include having the loan made after January 1, 1998, being current on payments, not having any recent late payments, and the loan principal being 75% or less of the home's value. The property must be one-to-four units, owner-occupied, and used for personal purposes. However, this law doesn't apply to loans made under certain government housing programs or if specific rules by an institutional third party prohibit cancellation. It also considers institutional standards in compliance if a loan is sold to them.

If someone cancels their private mortgage insurance, the insurance company has to give back the leftover premium money to the person the insured designates within 30 days.

If a bank or similar financial institution in California holds insurance money meant for rebuilding or repairing a single-family home, it has to pay at least 2% interest per year on that money. This interest is added to the insurance account every year or when the account is closed, whichever comes first. The bank can't charge fees that would reduce this interest below 2%. This rule doesn't apply if regulations require the money to be kept in a non-interest account. There are options to deposit in accounts that pay interest in certain federal or government-related banks. If some parts of this law aren't valid, other parts still apply.

This law requires that money held by a mortgage holder or a trust deed beneficiary in California, meant for property taxes, insurance, or other related expenses, must be kept in the state and invested with local businesses. However, there are exceptions allowing certain large financial or governmental organizations, like banks or federal agencies, to deposit these funds in insured out-of-state institutions. If funds are kept out of state, records must be accessible in California, either by making them available locally or covering the costs for local regulators to examine them elsewhere. The California Attorney General can take legal action if these regulations are violated.

If you're getting a loan for your condo and the lender or a big financial institution, like Fannie Mae, requires earthquake insurance, they must tell you a few things upfront. These include that not all lenders have this requirement, earthquake insurance might be needed for the whole condo project, and there might also be a need for extra financial reserves to cover the insurance deductible. This information must be given to you in writing as soon as possible.

This law says that lenders can't make borrowers get hazard insurance for real estate loans that covers more than what it would cost to replace the buildings on the property. They must also inform borrowers about this rule in writing before any loan documents are signed. If a lender breaks this rule, the borrower can take legal action to stop the behavior and may receive compensation, including for legal fees. However, even if this rule is broken, it doesn't make the loan itself invalid.