Chapter 7Oversight

Section § 90010

Explanation

This law applies to anyone involved in offering or managing real estate loans for personal use, including actions like loan brokering or modification services. It also covers those registered with a specific state department or who provide financial services as determined by the department. Service providers to these people are also covered. The department can request reports and perform regular examinations of these covered individuals to ensure they are following consumer financial laws, understand their operations, and identify any risks to consumers or markets. The commissioner has the authority to demand reports on relevant information, even if it's stored or managed by someone else.

(a)CA Financial Code § 90010(a) This section shall apply to any covered person who meets any of the following conditions:
(1)CA Financial Code § 90010(a)(1) Offers or provides origination, brokerage, or servicing of loans secured by real estate for use by consumers primarily for personal, family, or household purposes, or loan modification or foreclosure relief services in connection with those loans.
(2)CA Financial Code § 90010(a)(2) Is a registrant of the department that is required to be registered by statute or by rule.
(3)CA Financial Code § 90010(a)(3) The department has reasonable cause to determine, by order, after notice to the covered person that the covered person is offering or providing financial products or services.
(4)CA Financial Code § 90010(a)(4) Is a service provider to a person described in paragraphs (1) to (3), inclusive.
(b)CA Financial Code § 90010(b) The department may require reports and conduct examinations on a periodic basis of persons described in subdivision (a) for purposes of all of the following:
(1)CA Financial Code § 90010(b)(1) Assessing compliance with the requirements of consumer financial laws.
(2)CA Financial Code § 90010(b)(2) Obtaining information about the activities and compliance systems or procedures of that person.
(3)CA Financial Code § 90010(b)(3) Detecting and assessing risks to consumers, small business, and to markets for consumer financial products and services.
(c)CA Financial Code § 90010(c) This division shall not be construed to limit the authority of the commissioner to require reports from persons described in subdivision (a), as permitted under subdivision (b), regarding information owned or under the control of the person, regardless of whether the information is maintained, stored, or processed by another person.
real estate loans loan servicing loan modification foreclosure relief consumer financial laws department exams compliance systems risk assessment consumer protection financial service providers information control reporting requirements state registration service providers market risks
(Added by Stats. 2020, Ch. 157, Sec. 7. (AB 1864) Effective January 1, 2021.)