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Unformatted text preview: nt of trust fund financial statements. For complete details of article 5, please visit website www.leginfo.ca.gov (California Business and Professions Code) ARTICLE 6 – REAL PROPERTY SECURITIES
Article 6 of the Real Estate Law (beginning with Business and Professions Code Section 10237) has been repealed as of January 1, 1998. The Department of Corporations has taken over responsibility for issuance of security permits. The Department of Corporations now has jurisdiction over all securities transactions. ARTICLE 7 – MORTGAGE BROKER'S LOAN LAW
Article 7 is known as the Mortgage Broker's Loan Law or Real Property Loan Law. Under California law any person who negotiates a loan secured by real property for another and for compensation must be licensed as a real estate broker or salesperson. Article 7 regulates the licensee's activities as an arranger of loans. 10-12 Licensing School for Appraisal, CPA, Contractors, Insurance, Real Estate, Notary, Nurse, Food Handlers, Tax and Securities 10: REGULATION OF LOAN BROKERAGE
Article 7 sets forth disclosure requirements as well as limits on loan costs and fees that can be charged by a mortgage loan broker. PURPOSE
The purpose of the Real Property Mortgage Loan Law is to protect the borrowers of hard money loans, whether purchase money or not. The law requires that prospective borrowers be supplied with complete loan information. In other words, the broker must give the applicant a filled–in Mortgage Loan Disclosure Statement before the loan is agreed upon. This disclosure statement will give the borrower a reasonably close picture of the final amount of the loan. MORTGAGE LOAN DISCLOSURE STATEMENT
The broker must provide the borrower with a disclosure statement containing complete loan information, including estimated loan costs, expenses, and commissions to be paid by the borrower. Form 10–1 is a reproduction of the Mortgage loan Disclosure Statement produced by the California Department of Real Estate. It contains inf...
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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