This preview shows page 1. Sign up to view the full content.
Unformatted text preview: ayment was made, the source of funds and the reason for making the payment. (Business and Professions Code 10233.1) Note:Prior to this requirement some mortgage brokers would hide the fact that a borrower was in default from the lender while trying to get the borrower current. They felt it could be bad for business, to get additional lenders, when a borrower was constantly late with his or her payment. MORTGAGE LENDER / INVESTOR DISCLOSURE STATEMENT
In addition to the borrower disclosure statements, which are required in loan transactions other than federally related loans, there is a lender/investor disclosure statement. This statement is limited to: 1. 2. 3. private lenders, small pension funds (less than $15,000,000 in assets), credit unions. RECORDING OF TRUST DEEDS
If a real estate broker negotiates a loan secured by a trust deed on real estate, the broker must record the trust deed (naming the lender as beneficiary) prior to the release of any funds (unless the lender provides a written authorization for a prior release of funds.) If the funds are released on the written authorization of the lender prior to recording, the broker shall either record the trust deed within 10 days of release of funds or deliver the trust deed to the lender with a written recommendation that it be immediately recorded.
Dynasty School (www.dynastySchool.com) 10-11 REAL ESTATE FINANCE RECORDING OF ASSIGNMENTS
When a real estate broker sells or otherwise arranges a transfer of an existing trust deed or sales contract secured by real estate9 the broker shall record the assignment naming the assignee as purchaser.
Recording must be within 10 working days after the seller receives funds from escrow or the buyer for the assignment. As an alternative the broker may deliver the real property sales contract or trust deed to the purchaser with a written recommendation that it be immediately recorded. (Business and Professions Code 10234) ANNUAL REPORTS
A “mortgage loan broker” must file annual reports with the DRE, which must include a review by a licensed California independent public accounta...
View Full Document
This note was uploaded on 12/30/2010 for the course SOC 101 taught by Professor Zhung during the Spring '10 term at Punjab Engineering College.
- Spring '10