Amended by SB 385:
Business and Professions Code §10131.1
A real estate broker is defined as a person who, among other activities:
· engages as a principal in the business of making loans or buying from, selling to, or exchanging with the public, real property sales contracts or promissory notes secured directly or collaterally by liens on the property; or
· makes agreements with the public for the collection of payments or for the performance of services in connection with real property sales contracts or promissory notes secured directly or collaterally by liens on the property.
“Own funds” means cash, corporate capital, or warehouse credit lines at commercial banks, savings banks, savings and loan associations, industrial loan companies, or other sources that are liability items on the person’s or an affiliate’s financial statements, whether secured or unsecured.
“Own funds” does not include funds provided by a third party to fund a loan on the condition that the third party will subsequently purchase or accept an assignment of the loan.
Amended by SB 385:
Business and Professions Code §10245
Loans which do not count toward the eight or more made in a calendar year from a real estate broker’s own funds include:
- bona fide loans secured directly or collaterally by a first trust deed where the principal is $30,000 or more; and
- bona fide loans secured directly or collaterally by any junior lien where the principal is $20,000 or more.
Added by SB 385:
Business and Professions Code §10240.3
The Real Estate Commissioner is directed to adopt emergency and final regulations which apply the guidance on nontraditional mortgage product risks published by the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators on November 14, 2006, and the Statement on Subprime Mortgage Lending on July 17, 2007, to real estate brokers in the business of making loans.
Added by SB 385:
Financial Code §215.5
The Commissioner of Financial Institutions is directed to apply the September 2006 Interagency Guidance on Nontraditional Mortgage Product Risks and the June 2007 Statement on Subprime Mortgage Lending to state-regulated financial institutions, including, but not limited to, privately insured, state-chartered credit unions by issuing emergency and final regulations.
Added by SB 385:
Financial Code §22171 and §50333
The Commissioner of Corporations is directed to apply the guidance on nontraditional mortgage product risks published by the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators on November 14, 2006 and the Statement on Subprime Mortgage Lending on July 17, 2007 to licensees by adopting emergency and final regulations.