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AB-544 Residential mortgage lenders.(2007-2008)

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CALIFORNIA LEGISLATURE— 2007–2008 REGULAR SESSION

Assembly Bill
No. 544

Introduced  by  Assembly Member Walters

February 21, 2007

An act to amend Section 50120 of the Financial Code, relating to residential mortgage lenders.


LEGISLATIVE COUNSEL'S DIGEST


AB 544, as introduced, Walters. Residential mortgage lenders.
The California Residential Mortgage Lending Act provides for the licensing and regulation by the Commissioner of Corporations of persons engaged in the business of making residential mortgage loans or servicing those loans.
This bill would make a nonsubstantive change to these provisions.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NO   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 50120 of the Financial Code is amended to read:

50120.
 (a) A residential mortgage lender shall file an application for licensure under this chapter with the commissioner to make or service residential mortgage loans in this state.
(b) A licensee may not engage in the business as a residential mortgage lender under a name other than the name that appears on the license, or a legally assumed name disclosed either in the application or in an amendment to the application, which shall be reflected on the license.
(c) A licensee may not make or service residential mortgage loans secured by real property pursuant to the authority of a license, or an exemption from licensure, under the Real Estate Law (Division 14 (commencing with Section 10000) of the Business and Professions Code).
(d) The commissioner may, pursuant to Section 50321, order a licensee to cease any other business conducted at any location where the licensee operates under the authority of a residential mortgage lender license, if the commissioner finds that the conduct of that business has facilitated evasions of this division or the rules adopted pursuant to this division, or that the conduct of that business is in violation of any law to which that business is subject.
(e) A license for a business location outside this state may be issued if the licensee agrees in writing, and subject to the sole discretion of the commissioner, to either (1) make the licensee’s books, accounts, papers, records, and files available to the commissioner or the commissioner’s representatives in this state within 10 calendar days of a request from the commissioner or, (2) pay the reasonable expenses for travel, meals, and lodging of the commissioner or the commissioner’s representatives incurred during an investigation or examination made at the licensee’s location outside this state.