California Codes, Business and Professions Code - BPC, Division 4 — Real Estate, Part 1 — Licensing of Persons, Chapter 3 — Real Estate Regulations, Article 7 — Real Property Loans, Section 10240.3
(a) The commissioner shall apply the guidance on nontraditional mortgage product risks published on November 14, 2006, by the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators, and the Statement on Subprime Mortgage Lending published on July 17, 2007, by the aforementioned entities and the National Association of Consumer Credit Administrators, to real estate brokers acting within the meaning of Section 10131.1 or subdivision (d) of Section 10131.
(b) The commissioner may adopt emergency and final regulations to clarify the application of this section as soon as possible.
(c) A real estate broker acting within the meaning of Section 10131.1 or subdivision (d) of Section 10131 shall adopt and adhere to policies and procedures that are reasonably intended to achieve the objectives set forth in the documents described in subdivision (a).
Notes
Requires the commissioner to apply specified 2006 nontraditional-mortgage-risk guidance and 2007 subprime-lending guidance to real-estate brokers performing the referenced lending activities. Requires those brokers to adopt and follow policies and procedures reasonably intended to achieve the documents’ objectives, while allowing the commissioner to issue emergency and final regulations clarifying application of the requirement.
Use as reference
Lexinter.net | California Code, Business and Professions Code - BPC § 10240.3 | https://laws.lexinter.net/codes/california/business-and-professions-code/division-4/part-1/chapter-3/article-7/section-10240-3