The commissioner has several responsibilities related to licensing in mortgage financing. They can issue, refuse, revoke, or suspend licenses and keep records of all licenses. They deal with complaints about licensees and handle applications and reports, such as financial statements. The commissioner can subpoena documents and witnesses, as well as require information necessary to assess a license applicant's integrity and competency. Additionally, they enforce rules, levy fees, and appoint staff to manage these duties efficiently.
Without limitation, the functions, powers, and duties of the commissioner include the following:
(a)CA Financial Code § 50301(a) To issue or refuse to issue a license as provided by this division.
(b)CA Financial Code § 50301(b) To revoke or suspend for cause any license as provided by this division.
(c)CA Financial Code § 50301(c) To keep records of licenses
issued under this division.
(d)CA Financial Code § 50301(d) To receive, consider, investigate, and act upon complaints made in connection with a licensee.
(e)CA Financial Code § 50301(e) To prescribe the forms of and receive (1) applications for licenses and (2) reports and books and records required to be made by a licensee under this division, including annual audited financial statements.
(f)CA Financial Code § 50301(f) To subpoena documents and witnesses and compel their attendance and production, to administer oaths, and to require the production of books, papers, or other materials relevant to any inquiry authorized by this division.
(g)CA Financial Code § 50301(g) To require information with regard to a license applicant that the commissioner may deem necessary, with regard for the paramount public interest in ascertaining the experience, background,
honesty, truthfulness, integrity, and competency of the license applicant for financial transactions involving primary or subordinate mortgage financing, and if the license applicant is an entity other than an individual, in ascertaining the honesty, truthfulness, integrity, and competency of an officer or director of the corporation, association, or other entity, or the members of a partnership.
(h)CA Financial Code § 50301(h) To enforce by order any provision of this division.
(i)CA Financial Code § 50301(i) To levy fees, fines, and charges in an amount sufficient to cover the cost of the services performed in administering this division, as set forth by rule.
(j)CA Financial Code § 50301(j) To appoint examiners, supervisors, experts, and special assistants as needed to effectively and efficiently administer this division.
commissioner responsibilities license issuance license refusal license revocation license suspension complaint investigations license application forms annual audited financial statements subpoena powers enforcement of regulations mortgage financing competency public interest in licensing levy fees and fines appoint examiners and experts financial transaction licensing
(Added by Stats. 1994, Ch. 994, Sec. 7. Effective January 1, 1995. Section operative January 1, 1996, pursuant to Section 50601 (later repealed).)
This law section requires the commissioner to regularly examine the business practices of residential mortgage lenders and servicer licensees, at least once every four years, to ensure they follow the rules. The commissioner can inspect their books, records, and even interview their staff if needed. The commissioner can also cooperate with other government bodies and accept their examinations unless they are insufficient for the commissioner's needs.
After examinations, the commissioner provides a written report of findings to the licensee's leaders, requiring corrections for any rulebreaking. Affiliates of these licensees may also be examined if there is evidence of illegal activity involving them. The licensees have to cover the costs of these examinations. Examination results and reports are owned by the commissioner and can only be shared with the licensee, law enforcement, or regulatory agencies for further investigation.
(a)CA Financial Code § 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 residential mortgage lender and servicer licensee for compliance with this division. The commissioner shall appoint suitable persons to perform the examination. The commissioner and his or her appointees may examine the books, records, and documents of the
licensee, and may examine the licensee’s officers, directors, employees, or agents under oath regarding the licensee’s operations. The commissioner may cooperate with any agency of the state or federal government, other states, agencies, the Federal National Mortgage Association, or the Federal Home Loan Mortgage Corporation. The commissioner may accept an examination conducted by one of these entities in place of an examination by the commissioner under this law, unless the commissioner determines that the examination does not provide information necessary to enable the commissioner to fulfill his or her responsibilities under this division.
(b)CA Financial Code § 50302(b) The commissioner shall provide a written statement of the findings of the examination, issue a copy of that statement to each licensee’s principals, officers, or directors, and take appropriate steps to ensure correction of any violations of this division.
(c)CA Financial Code § 50302(c) Affiliates of a licensee are subject to examination by the commissioner on the same terms as the licensee, but only when reports from, or examination of, a licensee provides documented evidence of unlawful activity between a licensee and affiliate benefiting, affecting, or arising from the activities regulated by this division.
(d)CA Financial Code § 50302(d) The residential mortgage lender or servicer licensee shall pay, and the commissioner shall assess, the reasonable expenses of any examination of the licensee and affiliates, consistent with the requirements of subdivision (c) of Section 50314.
(e)CA Financial Code § 50302(e) The statement of the findings of an examination shall belong to the commissioner and shall not be disclosed to anyone other than the licensee, law enforcement officials, or other state or federal regulatory agencies for further investigation and
enforcement. Reports required of licensees by the commissioner under this division and results of examinations performed by the commissioner under this division are the property of the commissioner.
residential mortgage lenders servicer licensees commissioner’s examination compliance check government cooperation examination findings affiliate examination unlawful activity examination costs written statement regulatory agencies law enforcement documentation requirements unauthorized disclosure property of commissioner
(Amended by Stats. 2009, Ch. 160, Sec. 70. (SB 36) Effective October 11, 2009.)
This law says that the commissioner and employees of the Department of Financial Protection and Innovation can get a residential mortgage loan from licensed lenders. However, they must follow the specific rules that apply to such loans.
Neither the commissioner nor any employee of the Department of Financial Protection and Innovation shall be precluded from obtaining a residential mortgage loan from a lender licensed under this division, subject to the rules that may be adopted hereunder or pursuant to other proper authority.
residential mortgage loan Department of Financial Protection and Innovation commissioner employees licensed lenders rules for mortgage loans loan eligibility financial regulations mortgage lender requirements borrower rights state employees finance department policies government employees loan procurement financial oversight
(Amended by Stats. 2022, Ch. 452, Sec. 160. (SB 1498) Effective January 1, 2023.)
The commissioner has the authority to create, change, or cancel rules, forms, and orders needed to enforce the law. They can define terms, manage applications and reports, and create different requirements for various classes of loans and people. Also, the commissioner can choose to ignore a rule if they believe it's not important for public interest or safeguarding borrowers and investors.
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, including rules and forms governing applications and reports, and defining any terms, whether or not used in this law, provided that the definitions are consistent with the provisions of this law. For the purposes of rules and forms, the commissioner may classify loans, persons, and matters within the jurisdiction of
the commissioner, and may prescribe different requirements for different classes. The commissioner may, in his or her discretion, waive a requirement of a rule or form if, in the opinion of the commissioner, the requirement is not in the public interest or necessary for the protection of borrowers or investors.
commissioner authority rulemaking amend rules rescind orders define terms loan classification form requirements public interest waiver borrower protection investor protection create forms legal definitions application management report regulations enforce provisions
(Added by Stats. 1994, Ch. 994, Sec. 7. Effective January 1, 1995. Section operative January 1, 1996, pursuant to Section 50601 (later repealed).)
If the commissioner asks for it in writing, a licensee must provide permission to release their independent auditor's workpapers to the commissioner within two business days of getting the request.
Upon written request from the commissioner, a licensee shall forward authorization to release workpapers of the licensee’s independent auditor to the commissioner within two business days of receiving the request.
commissioner request licensee obligation independent auditor workpapers authorization to release two business days written request regulatory compliance financial audits auditor documentation request response timeframe licensee compliance audit transparency business regulation workpapers access audit review
(Added by Stats. 1994, Ch. 994, Sec. 7. Effective January 1, 1995. Section operative January 1, 1996, pursuant to Section 50601 (later repealed).)
If a business that has a license opens a new branch or changes its location in California without notifying the commissioner in writing as required, they can be fined up to $100 per day for the first 10 days and $10 for each day after that while they remain non-compliant.
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 to this law are conducted, without first notifying the commissioner in writing, as required by Section 50124, to forfeit to the people of the state up to one hundred dollars ($100) each day for the first 10 days and ten dollars ($10) for each day thereafter during which the branch office or changed location is
maintained without notifying the commissioner.
branch office business location change notification requirement commissioner daily fine business operations non-compliance penalty licensed businesses California business regulation location notification Section 50124 state penalty business licenses location maintenance fine for non-notification
(Amended by Stats. 1998, Ch. 178, Sec. 3. Effective January 1, 1999.)
In California, every residential mortgage lender or servicer must submit an annual report to the commissioner by March 1st, providing any necessary information needed for evaluation. This report needs to be sworn and formatted as the commissioner specifies.
Additionally, these lenders or servicers must also provide other reports as requested by the commissioner beyond the annual requirement.
If a lender or servicer fails to submit the required reports, the commissioner is allowed to examine their books and records thoroughly.
(a)CA Financial Code § 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 relevant information that the commissioner reasonably requires to make the calculation required by subdivision (a) of Section 50401. The report shall be made under oath and in the form prescribed by the commissioner.
(b)CA Financial Code § 50307(b) A licensee shall make any other special reports to the commissioner that the commissioner may, from time to time, require.
(c)CA Financial Code § 50307(c) If any licensed residential mortgage lender or servicer subject to this division fails to make a report required by law or by the commissioner, the commissioner may immediately cause the books, records, papers, and affairs of that licensee to be thoroughly examined.
residential mortgage lender servicer licensee annual report commissioner requirements report under oath special reports failure to report books examination record examination March 1st deadline residential mortgage servicer
(Amended by Stats. 2009, Ch. 160, Sec. 71. (SB 36) Effective October 11, 2009.)
This law allows the commissioner to require licensees in the residential mortgage loan service industry to submit reports about their activities, similar to a previous survey. The commissioner can also collect data voluntarily from mortgage loan servicers outside their jurisdiction. The results of these surveys are shared publicly online but only in an aggregated form. The commissioner will mention how many servicers submitted data and what portion of California's mortgage loans they handle, if such information is available. This doesn't change the commissioner's pre-existing authority to demand reports under another section.
The commissioner may, as the commissioner deems necessary, require licensees to provide reports concerning their residential mortgage loan servicing activities, including, but not limited to, information similar to that collected in connection with the Mortgage Servicers Survey, first published by the Department of Financial Protection and Innovation in December 2007. The commissioner is additionally authorized to seek and accept information provided on a voluntary basis by residential mortgage loan servicers not subject to the commissioner’s jurisdiction. The commissioner shall post only aggregated survey results on the department’s internet website, and shall note the number of loan servicers submitting data included in the aggregated totals and the estimated percentage of outstanding mortgage loans to Californians that are serviced by these loan
servicers, to the extent information on the number of outstanding loans is available from a reliable source. Nothing in this section is intended to reduce or change the commissioner’s authority to request and demand reports under Section 50307.
residential mortgage loan servicing commissioner authority Mortgage Servicers Survey Department of Financial Protection and Innovation voluntary data submission aggregated survey results online publication loan servicers outstanding mortgage loans financial reports licensee reporting requirements jurisdiction mortgage data collection California mortgage servicers residential mortgage data
(Amended by Stats. 2022, Ch. 452, Sec. 161. (SB 1498) Effective January 1, 2023.)
This law allows the commissioner to require companies that have mortgage loan originators to provide certain reports to the Nationwide Mortgage Licensing System and Registry. These reports must be formatted and filled out with the information that the Registry demands.
The commissioner may require a licensee that employs one or more mortgage loan originators to submit to the Nationwide Mortgage Licensing System and Registry reports of condition, which shall be in such form and shall contain such information as the Nationwide Mortgage Licensing System and Registry may require.
mortgage loan originators Nationwide Mortgage Licensing System Registry reports commissioner authority licensee requirements condition reports mortgage industry compliance reporting obligations loan originator employment information format requirements submission to Registry licensing system reports regulatory compliance mortgage industry reporting California mortgage law
(Added by Stats. 2009, Ch. 160, Sec. 72. (SB 36) Effective October 11, 2009.)
This law says that if someone in the loan business advertises interest rates or loan costs, they must make this information clear and easy to understand so that potential borrowers have all the details they need. If the advertised rates or costs don't apply to every type of loan they offer, the ad must say so. Following the federal Truth in Lending Act and its rules is assumed to meet this state's requirements.
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 shall require that they are stated fully and clearly in the manner that he or she deems necessary to give adequate information to prospective borrowers. If the rates or costs advertised do not apply to loans of all classes made or negotiated by that person, this fact shall be clearly indicated in the
advertisement. Compliance with the requirements of the federal Truth in Lending Act and Regulation Z promulgated thereunder is presumed to satisfy the requirements of this section.
loan advertising interest rates loan costs Truth in Lending Act Regulation Z loan classes borrower information advertising compliance financial advertising state loan requirements advertisement clarity
(Added by Stats. 1994, Ch. 994, Sec. 7. Effective January 1, 1995. Section operative January 1, 1996, pursuant to Section 50601 (later repealed).)
This law allows the commissioner to mandate that businesses keep copies of their advertisements for at least 90 days after they're used. These records must be accessible to the commissioner if requested.
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 to the commissioner upon request.
advertising copy advertising records record retention 90-day period business compliance advertising regulations commissioner request document storage business files advertising management record keeping requirements marketing compliance regulatory oversight commercial advertising advertisement filing
(Added by Stats. 1994, Ch. 994, Sec. 7. Effective January 1, 1995. Section operative January 1, 1996, pursuant to Section 50601 (later repealed).)
If someone's license to handle mortgages is suspended or revoked, this law allows them to continue managing existing residential mortgage loans for a temporary period. This period is considered a transition time, and its length is decided by the commissioner.
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 continuing to service residential mortgage loans pursuant to servicing contracts in existence at the time of the suspension for a reasonable transition period, as determined by the commissioner, after the date of the entry of the final decision in the case suspending or
revoking the license.
residential mortgage loans license suspension license revocation mortgage servicing servicing contracts transition period commissioner decision mortgage loan originator continuing to service summary suspension revoked license final decision existing contracts suspended license servicing continuation
(Amended by Stats. 2009, Ch. 160, Sec. 72.5. (SB 36) Effective October 11, 2009.)
If a person's license for providing residential mortgage loans gets suspended or revoked, they can still complete loans they committed to before that happened. However, the person planning to borrow money can cancel their agreement before the loan is finalized and get back any money they paid.
Nothing in this law shall preclude a person whose license has been suspended or revoked, summarily or otherwise, from making a residential mortgage loan pursuant to a commitment issued by that person prior to the suspension or revocation. A prospective borrower who received a commitment issued by a person whose license has been suspended or revoked may, prior to the closing of the loan, terminate the commitment and receive a refund of all money paid to that
person.
license suspension license revocation residential mortgage loan loan commitment borrower rights loan termination money refund suspended license revoked license pre-existing commitments loan closure financial refunds mortgage rights loan agreements loan processing
(Added by Stats. 1994, Ch. 994, Sec. 7. Effective January 1, 1995. Section operative January 1, 1996, pursuant to Section 50601 (later repealed).)
This law allows the commissioner the choice to provide answers or clarifications to questions from people who want to understand the rules better.
The commissioner, in his or her discretion, may honor requests from interested persons for interpretive opinions.
commissioner discretion interpretive opinions interested persons requests for clarification interpreting rules answers to questions legal guidance understand regulations rule interpretation clarifications requests from public
(Added by Stats. 1994, Ch. 994, Sec. 7. Effective January 1, 1995. Section operative January 1, 1996, pursuant to Section 50601 (later repealed).)
If you are trying to prove that you qualify for an exemption or an exception within this law, it's your responsibility to provide evidence for that claim.
In any proceeding under this law, the burden of proving an exemption or an exception from a definition is upon the person claiming it.
proving exemption claiming exception burden of proof evidence responsibility legal exemption exception claim burden on claimant qualification evidence exemption responsibilities exception requirements
(Added by Stats. 1994, Ch. 994, Sec. 7. Effective January 1, 1995. Section operative January 1, 1996, pursuant to Section 50601 (later repealed).)
This law outlines the responsibilities of residential mortgage lenders and servicers in California. They must keep proper records to show their activities comply with state laws and allow the commissioner to check these records any time. If the commissioner wants financial information, lenders and servicers must provide access. The costs for any inspections are paid by the business being inspected. Reports from these inspections are not public but can be shared with company officers for corrective actions. The law also specifies procedures for determining who is subject to these rules.
(a)CA Financial Code § 50314(a) Every person subject to this division shall keep documents and records that will properly enable the commissioner to determine whether the residential mortgage lending or residential mortgage loan servicing functions performed by that person comply with the provisions of this division and with all rules and orders made by the commissioner under this division. Upon request of the commissioner, residential mortgage lenders and residential mortgage loan servicers shall file an authorization for disclosure to the commissioner of financial records of the licensed business pursuant to Section 7473 of the Government Code.
(b)Copy CA Financial Code § 50314(b)
(1)Copy CA Financial Code § 50314(b)(1) The business documents and records of every residential mortgage lender or residential mortgage loan servicer, whether required to be licensed under this division or not, are subject to inspection and examination by the commissioner at any time without prior notice. The provisions of this subdivision shall not apply to persons specified in subdivision (g) of Section 50003.
(2)CA Financial Code § 50314(b)(2) Any person subject to this division shall, upon request and within the time specified in the request, allow inspection and copying of any documents and records by the commissioner or the commissioner’s authorized representative.
(c)Copy CA Financial Code § 50314(c)
(1)Copy CA Financial Code § 50314(c)(1) The cost of every inspection and examination of a licensee or other person subject to this division shall be paid to the commissioner by
the licensee or person examined, and the commissioner may maintain an action for the recovery of these costs in any court of competent jurisdiction. In determining the cost of any inspection or examination, the commissioner may use the estimated average hourly cost, including overhead, for all persons performing inspections or examinations of licensees or other persons subject to this division for the fiscal year.
(2)CA Financial Code § 50314(c)(2) For the purpose of this subdivision only, no person other than a licensee shall be deemed to be a person subject to this division unless and until the person is determined to be a person subject to this division by an administrative hearing in accordance with Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code, or by a judicial hearing in any court of competent jurisdiction.
(d)CA Financial Code § 50314(d) Investigation and examination reports prepared by the commissioner’s duly designated representatives are not public reports. Those reports may be disclosed to the officers or directors of a licensee that is the subject of the report for the purpose of corrective action by the officers or directors. That type of disclosure shall not operate as a waiver of the exemption specified in Section 7929.000 of the Government Code.
residential mortgage lenders mortgage loan servicers record keeping compliance financial records inspection costs inspection reports confidentiality disclosure authorization administrative hearing secure record access business examination corrective action government code compliance non-public reports
(Amended by Stats. 2021, Ch. 615, Sec. 116. (AB 474) Effective January 1, 2022. Operative January 1, 2023, pursuant to Sec. 463 of Stats. 2021, Ch. 615.)
This law explains that if there is evidence of a violation of financial regulations, the commissioner can refer this to the county district attorney. The district attorney has the option to start criminal proceedings, even if they weren’t directly alerted by the commissioner. The commissioner and their team can support the district attorney in court if needed.
After any related examinations or investigations, if the commissioner believes it benefits the public, they can report findings to the appropriate legal authority in the location where the suspected violation happened.
(a)CA Financial Code § 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 district attorney of the county in which the violation occurred. The district attorney may, with or without the commissioner’s referral, institute criminal proceedings under this law. The commissioner and his or her counsel, deputies, or assistants may, upon request of the district attorney,
assist the district attorney in presenting the law or facts at the trial.
(b)CA Financial Code § 50315(b) After an examination, investigation, or hearing under this division, if the commissioner deems it of public interest or advantage, he or she may certify a record to the proper prosecuting official of the county or city in which the act complained of, examined, or investigated occurred.
commissioner referral district attorney involvement criminal proceedings financial regulations violation commissioner assistance public interest certification investigative findings prosecuting official legal authority reporting county violations criminal law assistance evidence referral financial regulation enforcement district attorney trial prosecutorial collaboration
(Added by Stats. 1994, Ch. 994, Sec. 7. Effective January 1, 1995. Section operative January 1, 1996, pursuant to Section 50601 (later repealed).)
If you're a licensee, getting disciplined by California, another state, the federal government, or even another country for actions related to your licensed activity can lead to further disciplinary actions here. A certified document of any such past discipline is considered strong evidence.
Also, this law doesn't prevent other specific rules from being used to discipline you for the same incidents of past discipline.
(a)CA Financial Code § 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 action substantially related to the activity regulated under this law may be a ground for disciplinary action by the commissioner. A certified copy of the record of the disciplinary action taken against a licensee by the State of California, another state, any agency of the federal
government, or another country shall be conclusive evidence of the events related therein.
(b)CA Financial Code § 50316(b) Nothing in this section shall preclude the commissioner from applying a specific statutory provision in this division providing for discipline against a licensee as a result of disciplinary action taken against a licensee by the State of California, another state, an agency of the federal government, or another country.
licensee discipline disciplinary actions evidence of discipline international discipline government agency discipline ground for disciplinary action activity regulation certified record commissioner authority related actions statutory provision state discipline federal discipline conclusive evidence foreign disciplinary action
(Amended by Stats. 1998, Ch. 178, Sec. 4. Effective January 1, 1999.)
This law states that any application or document filed with the Department of Financial Protection and Innovation, which includes electronic filings through a national database, is considered a valid original document once it's printed on paper by the department.
Notwithstanding any other law, any application for licensure, amendment to the application or registration document or notice filed under any of the laws administered by the Department of Financial Protection and Innovation, or record otherwise required to be filed in this state as an electronic record pursuant to a nationwide central depository for information regarding licensees, including mortgage loan originators, or any electronic record filed through the Nationwide Mortgage Licensing System and Registry, shall be deemed to be a valid original document upon reproduction to paper form by the Department of Financial Protection and Innovation.
licensure application electronic record Department of Financial Protection and Innovation Nationwide Mortgage Licensing System mortgage loan originators valid original document electronic filing licensing document reproduction paper form validation amendment application registration document nationwide central depository financial protection information filing state filing requirements
(Amended by Stats. 2022, Ch. 452, Sec. 162. (SB 1498) Effective January 1, 2023.)
This law states that certain people cannot work for or hold significant ownership in residential mortgage companies. This includes individuals who have been convicted of specific crimes or involved in final civil or administrative judgments within the last few years. Crimes include serious offenses like fraud, theft, and embezzlement.
Those in high-level positions or with major ownership stakes in these companies may have to disclose their criminal history to regulators. If someone knowingly violates these rules, they can be penalized. The law also mentions that any criminal records obtained under this statute should remain confidential.
It also stipulates that employees who deal with the public or manage trust funds are covered under this section, and any part of this law found invalid doesn't affect the validity of the rest.
(a)CA Financial Code § 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 in any civil action by final judgment or any administrative judgment by any public agency within the past seven years, of any of the provisions specified in subdivision (b), shall not serve as an officer, director, partner, shareholder controlling
10 percent or more of the ownership interests, trustee, or employee of a residential mortgage lender or residential mortgage loan servicer. This subdivision shall not apply to any person whose office, employment, ownership interest, or other participation in the business of a licensed residential mortgage lender or residential mortgage loan servicer commenced prior to January 1, 1995, or whose criminal conviction, plea, or judgment occurred prior to January 1, 1995.
(b)CA Financial Code § 50317(b) Subdivision (a) applies to criminal convictions of, pleas of nolo contendere to, or civil or administrative judgments entered for offenses including the following:
(1)CA Financial Code § 50317(b)(1) Offenses specified in Chapter 18 (commencing with Section 3350) of Division 1.
(2)CA Financial Code § 50317(b)(2) Offenses specified in Article 4 (commencing with Section 5300) of Chapter 1 of Division 2.
(3)CA Financial Code § 50317(b)(3) Offenses specified in Article 8 (commencing with Section 14750) of Chapter 4 of Division 5.
(4)CA Financial Code § 50317(b)(4) Offenses specified in Chapter 7 (commencing with Section 17700) of Division 6.
(5)CA Financial Code § 50317(b)(5) Offenses specified in Chapter 6 (commencing with Section 18435) of Division 7.
(6)CA Financial Code § 50317(b)(6) Offenses specified in provisions of the laws of the United States added or amended by the federal Financial Institutions Reform, Recovery and Enforcement Act of 1989 (Public Law 101-73).
(7)CA Financial Code § 50317(b)(7) Offenses involving robbery, burglary, theft, embezzlement, fraud, fraudulent conversion or misappropriation of property, forgery, bookmaking, receiving stolen property, counterfeiting, extortion, checks, credit cards, or computer violations
specified in Section 502 of the Penal Code. For the purpose of this section, but not Section 50318, an offense does not include a conviction for which the person has obtained a certificate of rehabilitation from a court of competent jurisdiction under Section 1203.4 or 4852.13 of the Penal Code or a similar certificate of rehabilitation obtained in a foreign jurisdiction.
(c)CA Financial Code § 50317(c) On and after January 1, 1995, any officer, director, or other person who seeks a controlling ownership interest of 10 percent or more in the business of a licensed residential mortgage lender or residential mortgage loan servicer shall, as a condition to obtaining that interest or participation, authorize the commissioner to have access to that person’s state summary criminal history information, as defined in Section 11105 of the Penal Code, for purposes of determining whether the person has a prior conviction of, or pleaded nolo contendere to, a criminal offense
specified in subdivision (b).
(d)CA Financial Code § 50317(d) Any state summary criminal history information obtained pursuant to this section shall be kept confidential and no recipient shall disclose the contents other than for the purpose of acquisition of an ownership interest in or other participation in the business of a licensed residential mortgage lender or residential mortgage loan servicer.
(e)CA Financial Code § 50317(e) Any person who knowingly violates subdivision (a), including, but not limited to, any residential mortgage lender or residential mortgage loan servicer who permits an ownership interest in or other participation in the business of a residential mortgage lender or residential mortgage loan servicer in violation of subdivision (a) shall, upon conviction, be subject to punishment as set forth in Section 50500.
(f)CA Financial Code § 50317(f) Nothing in this section shall be
construed to permit the reinstatement of any person barred by the commissioner pursuant to Section 50320 nor to prohibit the commissioner from bringing any action pursuant to Section 50320.
(g)CA Financial Code § 50317(g) If any provision of this section or the application of this section to any person or circumstances is held invalid, that invalidity shall not affect other provisions or applications of this section that can be given effect without the invalid provision or application, and to this end the provisions of this section are severable.
(h)CA Financial Code § 50317(h) For purposes of this section, the term “employee” means (1) a mortgage loan originator, including a loan officer or other individual who negotiates agreements with the public, or (2) an individual with access to or responsibility for trust funds held by the licensee.
residential mortgage lender restrictions criminal background check financial crime ownership interests restrictions criminal history disclosure mortgage loan servicer fraud and embezzlement confidentiality of criminal history restrictions on employment certification of rehabilitation ownership interest in mortgage companies plea of nolo contendere civil or administrative judgment access to trust funds employee definition in mortgage context
(Amended by Stats. 2009, Ch. 160, Sec. 73. (SB 36) Effective October 11, 2009.)
This law allows a commissioner to censure, suspend for up to 12 months, or permanently bar mortgage professionals if they break the rules or commit certain crimes. The decision must be in the public's best interest, and there must be a violation they knew about or should have known about, causing harm to lenders or the public. If a person is found guilty of a relevant crime, or held liable in related civil or administrative cases, they can also be barred.
If notified of potential sanctions, individuals can ask for a hearing within 15 days. Without a hearing request, they waive this right. Once notified, they must stop all activities under this law immediately. Suspended or barred individuals cannot work at mortgage companies but can still have personal mortgage transactions handled.
This law also notes that if any section of the law is invalid, it doesn't affect the rest, and it defines 'employee' as those negotiating mortgages or handling trust funds. The law applies to new violations and convictions after its enactment.
(a)CA Financial Code § 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 any position of employment, management, or control any residential mortgage lender, residential mortgage loan servicer, or mortgage loan originator, or any other person, if the commissioner finds either of the following:
(1)CA Financial Code § 50318(a)(1) That the censure, suspension, or bar is in the public interest and that the person has committed or caused a violation of this division or rule or order of the commissioner, and (A) the violation was either known or should have been known by the person committing or causing it, or (B) the violation has caused material damage to the residential mortgage lender, residential mortgage loan servicer, mortgage loan originator, or to the public.
(2)CA Financial Code § 50318(a)(2) That the person (A) has been convicted of or pleaded nolo contendere to any crime, or (B) has been held liable in any civil action by final judgment, or any administrative judgment by any public agency, if that crime or civil or administrative judgment involved any offense specified in subdivision (b) of Section 50317, or any other offense reasonably related to the qualifications, functions, or duties of a person engaged in the business in
accordance with the provisions of this division.
(b)CA Financial Code § 50318(b) Within 15 days from the date of a notice of intention to issue an order pursuant to subdivision (a), the person may request a hearing under the Administrative Procedure Act (Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code). Upon receiving a request, the matter shall be set for hearing to commence within 30 days after receipt unless the person subject to this division consents to a later date. If no hearing is requested within 15 days after the mailing or service of the notice and none is ordered by the commissioner, the failure to request a hearing shall constitute a waiver of the right to a hearing.
(c)CA Financial Code § 50318(c) Upon receipt of a notice of intention to issue an order pursuant to this section, the person who is the subject of the proposed order is immediately prohibited from engaging in
any activities subject to licensure under the law.
(d)CA Financial Code § 50318(d) Persons suspended or barred under this section are prohibited from participating in any business activity of a licensed residential mortgage lender, residential mortgage loan servicer, or mortgage loan originator and from engaging in any business activity on the premises where a licensed residential mortgage lender, residential mortgage loan servicer, or mortgage loan originator is conducting its business. This subdivision shall not be construed to prohibit suspended or barred persons from having their personal transactions processed by a licensed residential mortgage lender, residential mortgage loan servicer, or mortgage loan originator.
(e)CA Financial Code § 50318(e) This section shall apply to any violation, conviction, plea, or judgment after the enactment of this section.
(f)CA Financial Code § 50318(f) If any
provision of this section or the application of this section to any person or circumstances is held invalid, that invalidity shall not affect other provisions or applications of this section that can be given effect without the invalid provision or application, and to this end the provisions of this section are severable.
(g)CA Financial Code § 50318(g) For purposes of this section, the term “employee” means (1) a mortgage loan originator, including a loan officer or other individual who negotiates agreements with the public, or (2) an individual with access to or responsibility for trust funds held by the licensee.
commissioner censure suspension of mortgage professionals mortgage loan originator public interest residential mortgage lender violation of rules harm to public hearing request administrative judgment civil liability suspended individuals restrictions bar from employment mortgage industry regulation personal transactions employee definition
(Amended by Stats. 2009, Ch. 160, Sec. 74. (SB 36) Effective October 11, 2009.)
If a business under this law is found to be financially unstable, operating unsafely, or not complying with specific requirements, the commissioner can stop their disbursement of trust funds and require them to set up a separate trust account for new funds. This directive remains until the commissioner changes it or the business declares bankruptcy.
After such an order, the business has 15 days to request a hearing. If they do, the hearing must start within 30 days unless a later date is agreed upon. Not requesting a hearing within this timeframe waives their right to one. Note, the request or hearing does not pause the commissioner's order.
(a)CA Financial Code § 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 insolvent condition, is conducting business in an unsafe or injurious manner that renders further operations hazardous to the public or to customers, has failed to comply with the provision of Section 50317, has permitted its tangible net worth to be
lower than the minimum required by law, or has failed to comply with the bonding requirements of Section 50205, the commissioner may, by an order addressed to and served by registered or certified mail, or by personal service on that person, and on any other person having in his or her possession or control any trust funds or other property deposited in escrow with that person, direct discontinuance of the disbursement, in whole or in part, of trust funds held by the licensee and order the establishment of a separate trust account for all subsequent trust funds received by the licensee. No person having in his or her possession any of these funds or documents shall be liable for failure to comply with the order unless he or she has received written notice of the order. Subject to subdivision (b), the order shall remain in effect until set aside by the commissioner, or the person is the subject of an order for relief in bankruptcy.
(b)CA Financial Code § 50319(b) Within 15
days from the date of an order pursuant to subdivision (a), the person may request a hearing under the Administrative Procedure Act (Chapter 5 (commencing with Section 11500) of Part 2 of Division 3 of Title 2 of the Government Code). Upon receiving a request, the matter shall be set for hearing to commence within 30 days after the receipt unless the person subject to this division consents to a later date. If no hearing is requested within 15 days after the mailing or service of the notice and none is ordered by the commissioner, the failure to request a hearing shall constitute a waiver of the right to a hearing. Neither the request for a hearing nor the hearing itself shall stay the order issued by the commissioner under subdivision (a).
insolvent condition unsafe business operations public hazard customer safety tangible net worth minimum net worth requirement bonding requirements trust fund disbursement separate trust account commissioner order bankruptcy relief hearing request Administrative Procedure Act waiver of right trust funds
(Amended by Stats. 2009, Ch. 500, Sec. 44. (AB 1059) Effective January 1, 2010.)
The law allows a commissioner to order someone to stop making or servicing residential mortgage loans, or to stop acting as a mortgage loan originator, if they don't have a proper license. If the person receiving the order asks for a hearing within 30 days, the hearing must be held within 60 days. If the hearing doesn’t happen in that time, the order is canceled. However, this rule doesn’t apply to those who are exempt under a specific other law (Section 50002).
Whenever, in the opinion of the commissioner, a person is engaged, either actually or through subterfuge, in the business of making residential mortgage loans, servicing residential mortgage loans, or engaging in business as a mortgage loan originator, without a license from the commissioner, the commissioner may order that person to desist and refrain. If, within 30 days after an order is served, a request for a hearing is
filed in writing and the hearing is not held within 60 days of the filing, the order is rescinded. This section does not apply to persons exempted under subdivision (b) of Section 50002.
residential mortgage loans mortgage servicing mortgage loan originator license requirement desist and refrain order commissioner authority subterfuge unlicensed activity hearing request order rescinded exemption Section 50002 loan origination financial regulations mortgage business compliance
(Amended by Stats. 2009, Ch. 160, Sec. 75. (SB 36) Effective October 11, 2009.)
This law allows a commissioner to take action if they find that a licensed company is breaking its foundational rules or laws. If the commissioner believes there is a violation, they can immediately order the company to stop. However, for the order to be permanent, certain procedures in another law section must be followed.
If, after investigation, the commissioner has reasonable grounds to believe that any licensee is violating or has violated its articles of incorporation or any law or rule binding upon it, the commissioner shall, by written order addressed to the licensee, direct the discontinuance of the violation. The order shall be effective immediately, but shall not become final except in accordance with the provisions of Section 50323.
commissioner authority licensee violation discontinuance order immediate order permanent enforcement investigation of licensee binding law written order issuance compliance enforcement section 50323 provisions corporate rule violation regulatory action
(Amended by Stats. 2022, Ch. 188, Sec. 18. (AB 2433) Effective January 1, 2023.)
This law means that if a commissioner finds that a business with a license is acting in a way that's unsafe or harmful, they can order the business to stop these practices immediately. However, this order won't be final until it follows specific procedures outlined in another section.
If, after investigation, the commissioner has reasonable grounds to believe that any licensee is conducting or has conducted business in an unsafe or injurious manner, the commissioner shall, by written order addressed to the licensee, direct the discontinuance of the unsafe or injurious practices. The order shall be effective immediately, but shall not become final except in accordance with the provisions of Section 50323.
commissioner authority unsafe business practices injurious manner written order licensee conduct discontinuance order investigation outcomes immediate effect final order procedures business safety compliance
(Amended by Stats. 2022, Ch. 188, Sec. 19. (AB 2433) Effective January 1, 2023.)
If someone has a license and receives a preliminary order against them under sections 50321 or 50322, they have the right to be notified about why the order might become final. They also have the right to request a hearing within 15 business days of noticing, but if they don't request it within 30 days, the order can become final without a hearing. If they do request or the commissioner orders a hearing, it will follow certain legal procedures. If the hearing confirms the business is being conducted in an unsafe manner or breaking rules, the order will be finalized, and the licensee must stop the practices.
After an order is finalized, the licensee has 10 days to start a legal action to stop the order's enforcement. But if the court doesn't block it within those 10 days, the licensee must follow the order.
(a)CA Financial Code § 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 the order final and of the reasons for the finding. The commissioner shall also notify the licensee that upon receiving a request the matter will be set for hearing to commence within 15 business days after receipt. The licensee may consent to have the hearing commence at a later date. If no hearing is requested within 30 days after the mailing or service of the required notice, and none is ordered by the commissioner, the order may become final without hearing and the licensee shall immediately discontinue the practices named in the order. If a hearing is requested or ordered, it shall be held in accordance with the provisions of the
Administrative Procedure Act (Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code), and the commissioner shall have all of the powers granted under that act. If, upon the hearing, it appears to the commissioner that the licensee is conducting or has conducted business in an unsafe and injurious manner or is violating or has violated its articles of incorporation or any law of this state, or any rule binding upon it, the commissioner shall make the order of discontinuance final and the licensee shall immediately discontinue the practices named in the order.
(b)CA Financial Code § 50323(b) The licensee has 10 days after an order is made final to commence an action to restrain enforcement of the order. If the enforcement of the order is not enjoined within 10 days by the court in which the action is brought, the licensee shall comply with the order.
licensee notification hearing request order finalization unsafe business practices order compliance Administrative Procedure Act restrain enforcement legal hearing notice period business conduct violations enforcement timeline court injunction commissioner's powers order discontinuance legal procedures
(Amended by Stats. 2022, Ch. 188, Sec. 20. (AB 2433) Effective January 1, 2023.)
This law allows the commissioner to take legal action if they believe someone is breaking financial rules. They can ask the court for an injunction to stop the illegal actions and ensure compliance. The court can appoint someone, like a receiver, to manage the defendant's affairs or assets, and this person can exercise the powers of the defendant's management. These appointed individuals are protected from legal actions against them while performing court-approved duties.
Additionally, if it's in the public interest, the commissioner can request the court to grant extra remedies for those harmed by the illegal actions, such as financial compensation or returning wrongfully taken money.
(a)CA Financial Code § 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 constituting a violation of any provision of this division or any rule or order hereunder, the commissioner may, bring an action to enjoin the acts or practices or to enforce compliance with this law or any rule or order hereunder. The action shall be brought in the name of the people of the State
of California in the superior court. Upon a proper showing, a permanent or preliminary injunction, restraining order, or writ of mandate shall be granted. A receiver, monitor, conservator, or other designated fiduciary or officer of the court, which may include the commissioner, may be appointed for the defendant or the defendant’s assets. Any other ancillary relief may be granted as appropriate.
A receiver, monitor, conservator, or other designated fiduciary or officer of the court appointed by the superior court pursuant to this section may, with the approval of the court, exercise any or all of the powers of the defendant’s officers, directors, partners, trustees, or persons who exercise similar powers and perform similar duties. The powers include the filing of a petition for bankruptcy. No action at law or in equity may be maintained by any party against the commissioner, or a receiver, monitor, conservator, or other designated fiduciary or officer of the
court, by reason of their exercising these powers or performing these duties pursuant to the order of, or with the approval of, the superior court.
(b)CA Financial Code § 50324(b) If the commissioner determines it is in the public interest, the commissioner may include in any action authorized by subdivision (a) a claim for ancillary relief. The ancillary relief may include, but not be limited to, restitution or disgorgement or damages on behalf of the persons injured by the act or practice constituting the subject matter of the action. The court shall have jurisdiction to award additional relief.
commissioner action injunction financial rule violation appointed receiver court approval asset management fiduciary duties public interest restitution disgorgement damage compensation superior court illegal financial practice cease and desist court enforcement
(Added by Stats. 1994, Ch. 994, Sec. 7. Effective January 1, 1995. Section operative January 1, 1996, pursuant to Section 50601 (later repealed).)
If a mortgage lender, loan servicer, or loan originator does not follow certain orders, their license can be taken away immediately. However, they have a chance to stop this if they get a court order within 10 days that prevents the license removal from being enforced.
The commissioner may immediately revoke the residential mortgage lender’s, residential mortgage loan servicer’s, or mortgage loan originator’s license if the licensee fails to comply with any order issued under Section 50318, 50319, 50321, 50322, or 50503. The commissioner shall not revoke the license if, within 10 days from the effective date of the revocation order, the licensee secures a court order restraining the
enforcement of the commissioner’s revocation order.
mortgage lender loan servicer loan originator license revocation non-compliance court order enforcement residential mortgage commissioner revocation prevention immediate license action Section 50318 Section 50319 Section 50321 Section 50322 Section 50503
(Amended by Stats. 2009, Ch. 160, Sec. 76. (SB 36) Effective October 11, 2009.)
This law states that if a residential mortgage lender or loan servicer doesn't submit a required report or includes incomplete information within 10 days of the due date, they'll have to pay up to $100 each day for the first 10 days of delay. After those 10 days, further delays can lead to their license being suspended or revoked.
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 up to the 10th day: (a) to make any report required by law or by the commissioner within 10 days from the day designated for the making of the report, or within any extension of time granted by the commissioner, or (b) fails to include therein any matter required by law or by the commissioner. Thereafter, any
failure shall constitute grounds for the suspension or revocation of the license held by the residential mortgage lender or residential mortgage loan servicer.
residential mortgage lender loan servicer report submission deadline license suspension license revocation financial penalties commissioner report compliance requirements incomplete report daily fines residential mortgage compliance reporting requirements licensee obligations delay penalties mortgage regulations
(Added by Stats. 1994, Ch. 994, Sec. 7. Effective January 1, 1995. Section operative January 1, 1996, pursuant to Section 50601 (later repealed).)
In California, a commissioner has the authority to deny, not renew, suspend, or revoke a financial license if a licensee breaks any rules or if any concerning issues were present at the time of the initial application. Even if a license is denied or revoked, the commissioner can still investigate the licensee.
(a)CA Financial Code § 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 finds that:
(1)CA Financial Code § 50327(a)(1) The licensee has violated any provision of this division or any rule or order of the commissioner thereunder.
(2)CA Financial Code § 50327(a)(2) Any fact or condition exists that, if it had existed at the time of the original application for the license, reasonably would have warranted the commissioner in refusing to issue the license originally.
(b)CA Financial Code § 50327(b) The power of investigation and
examination by the commissioner is not terminated by the denial, nonrenewal, surrender, suspension, or revocation of any license issued by him or her.
license denial license suspension license revocation commissioner authority license rules violation investigation powers financial license license nonrenewal initial application concerns California financial licenses license compliance commissioner investigation license renewal conditions
(Amended by Stats. 2012, Ch. 264, Sec. 12. (AB 2666) Effective January 1, 2013.)
This law section says that the commissioner has the ongoing authority to take action if they believe it's necessary for public interest. This power is valid regardless of whether someone has applied for a license or if a license is issued, surrendered, suspended, or revoked, unless the person is exempt from this rule.
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 to exercise the powers set forth in this division. These powers may be exercised whether or not an application for a license has been filed with the commissioner, any license has been issued, or if issued, has been surrendered, suspended, or revoked.
commissioner's authority public interest license application license issuance license surrender license suspension license revocation exempt person continuous authority public interest necessity financial regulation authority compliance enforcement regulatory oversight licensing regulations exemption status
(Added by Stats. 1994, Ch. 994, Sec. 7. Effective January 1, 1995. Section operative January 1, 1996, pursuant to Section 50601 (later repealed).)
This law allows the commissioner to temporarily control access to the records of a residential mortgage lender or loan servicer for up to 30 days during an investigation. They can appoint someone to oversee the documents at their usual location. The licensee's staff can't remove the documents unless authorized, but they can examine and update them for current transactions. If there's no suspicion of foul play with the documents, the licensee can access records for normal business.
The commissioner can issue subpoenas, administer oaths, and require evidence during investigations. If someone resists a subpoena, the court can compel them to comply. If they refuse a court order, they can be held in contempt. People cannot refuse to testify or provide documents even if it might incriminate them, but they won't face penalties for this testimony unless they lie under oath.
(a)CA Financial Code § 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 any documents and records of the licensee pertaining to the business of any residential mortgage lender or residential mortgage loan servicer. The commissioner may place a keeper in exclusive charge of the documents and records in the place where they are usually kept. During the period of
control, no director, officer, partner, or employee shall remove or attempt to remove any of the documents except pursuant to a court order or with the consent of the commissioner. However, the directors, officers, partners, and employees of the residential mortgage lender or residential mortgage loan servicer may examine the documents or records. The licensee’s employees shall be permitted to make entries in the documents or records to reflect current transactions. Unless the commissioner has reasonable grounds to believe the documents or records of the licensee have been, or are at risk of being altered or destroyed for purposes of concealing a violation of this division, the licensee shall have access to the documents or records as necessary to conduct its ordinary business affairs.
(b)CA Financial Code § 50329(b) For the purpose of any investigation, examination, or proceeding under this division, the commissioner or any officer designated by the commissioner may
administer oaths and affirmations, subpoena witnesses, compel their attendance, take evidence, and require the production of any documents or records that the commissioner deems relevant.
(c)CA Financial Code § 50329(c) In case of refusal to obey a subpoena issued to a director, officer, partner, or employee of a licensee, the superior court may issue an order requiring that person to appear before the commissioner. When before the commissioner, the director, officer, partner, or employee shall produce documentary evidence or give evidence on the matter under investigation. Failure to obey the order of the court may be punished by the court as contempt.
(d)CA Financial Code § 50329(d) No person is excused from testifying or from producing any document or record before the commissioner, on the ground that the testimony or evidence required by the commissioner may tend to incriminate the person or subject him or her to a penalty or
forfeiture. However, no individual may be penalized for any matter concerning which he or she is compelled to testify or produce evidence, after validly claiming the privilege against self-incrimination. However, individual testimony is not exempt from prosecution and punishment for perjury or contempt committed in testifying.
residential mortgage lender loan servicer document control commissioner investigation keeper document access court order subpoena compelled testimony self-incrimination perjury contempt of court superior court examination authority evidence gathering
(Added by Stats. 1994, Ch. 994, Sec. 7. Effective January 1, 1995. Section operative January 1, 1996, pursuant to Section 50601 (later repealed).)
This law allows the commissioner to delegate the power to conduct examinations or investigations to a deputy, investigator, examiner, or auditor. These appointed individuals can administer oaths, subpoena witnesses, and take testimonies. The commissioner's appointment for this role must be documented in writing and can be requested for verification at any time during the examination or investigation.
The authority to make or conduct any examination or investigation may be delegated by the commissioner to any deputy, investigator, examiner, or auditor appointed for that purpose. An individual appointed by the commissioner for this purpose may administer oaths and subpoena witnesses, and take their testimony. The appointment shall be made by an instrument in writing signed by the commissioner. Upon any examination or investigation, the instrument shall be produced by
the appointed individual at any time upon demand.
commissioner delegation examination authority investigation authority deputy powers investigator authority examiner roles auditor powers administer oaths subpoena witnesses testimony collection written appointment instrument in writing authority verification investigation procedures delegation of powers
(Added by Stats. 1994, Ch. 994, Sec. 7. Effective January 1, 1995. Section operative January 1, 1996, pursuant to Section 50601 (later repealed).)
This law states that any hearings related to this financial division must follow the rules laid out in a specific section of the Government Code. It also explains that the commissioner overseeing these hearings has all the powers granted by that section of the code.
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 Division 3 of Title 2 of the Government Code. The commissioner has all the powers granted therein.
financial hearings Government Code procedures commissioner's powers Chapter 5 compliance Section 11500 administrative hearings Division 3 Title 2 hearing procedures regulatory compliance administrative law compliance
(Added by Stats. 1994, Ch. 994, Sec. 7. Effective January 1, 1995. Section operative January 1, 1996, pursuant to Section 50601 (later repealed).)
Any order or decision made by the commissioner can be reviewed following legal procedures.
Every order, decision, license, or other official act of the commissioner is subject to review, in accordance with law.
commissioner review official act review order review decision review license review legal procedures administrative orders appeal process regulatory authority actions review process oversight of decisions government actions review agency decisions official acts review rights
(Added by Stats. 1994, Ch. 994, Sec. 7. Effective January 1, 1995. Section operative January 1, 1996, pursuant to Section 50601 (later repealed).)
This law section requires the commissioner to enforce guidelines published in 2006 and 2007 related to risky mortgage products and subprime mortgage lending. These guidelines come from national banking and mortgage regulatory groups. The commissioner can make rules quickly to clarify how these guidelines should be applied. Mortgage loan companies and their employees must follow certain policies to meet these rules and objectives.
(a)CA Financial Code § 50333(a) The commissioner shall apply the guidance on nontraditional mortgage product risks published on November 14, 2006, by the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators, and the Statement on Subprime Mortgage Lending published on July 17, 2007, by the aforementioned entities and the National Association of Consumer Credit Administrators, to
licensees.
(b)CA Financial Code § 50333(b) The commissioner may adopt emergency and final rules to clarify the application of this section as soon as possible.
(c)CA Financial Code § 50333(c) A licensee shall adopt and adhere to policies and procedures that are reasonably intended to achieve the objectives set forth in the documents described in subdivision (a). A licensed mortgage loan originator shall adhere to policies and procedures developed by his or her employer in accordance with this division and applicable federal law and regulation.
nontraditional mortgage product risks subprime mortgage lending Conference of State Bank Supervisors American Association of Residential Mortgage Regulators National Association of Consumer Credit Administrators mortgage loan originator mortgage policies and procedures emergency rules federal mortgage regulations mortgage licensees compliance 2006 guidance 2007 statement
(Amended by Stats. 2009, Ch. 160, Sec. 77. (SB 36) Effective October 11, 2009.)
