Current through Register 2024 Notice Reg. No. 38, September 20, 2024
(a)
The term "negotiation" as used in Section 10133.1(c) of the Code does not include
any of the limited activities described as follows when done by an employee of a
real estate broker under the control, direction and supervision of the broker:
(1) Preparing and designing advertising relating
to loan transactions for broker review and written approval prior to its
distribution, circulation, use or publication.
(2) Distributing, circulating, using or publishing
preprinted brochures, flyers, fact sheets or other written materials relating to
loans secured by real property which the broker can make or negotiate and which have
been reviewed and approved in writing by the broker prior to their being
distributed, circulated or published. Materials subject to this subdivision may not
contain the name, address or telephone number of the nonlicensed employee.
(3) Providing written factual information about
loan terms, conditions or qualification requirements to a prospective borrower that
has been either prepared by the broker, or reviewed and approved in writing by the
broker. A nonlicensed employee may discuss such information with a prospective
borrower in general terms, but may not provide counseling or advice to a prospective
borrower.
(4) Notifying a prospective
borrower of the information needed in order to complete a loan application without
providing counseling or advice to a prospective borrower.
(5) Entering information provided by the
prospective borrower on a pre-printed application form without providing counseling
or advice to a prospective borrower.
(6)
Entering information provided by a prospective borrower or third party into a
preformatted computer database.
(7)
Accepting and providing a receipt on behalf of a broker for funds received from a
prospective borrower for credit or appraisal fees.
(8) Preparing and mailing requests for
verification of employment, verification of deposits, credit reports or appraisal
reports. Obtaining such reports for transmission to the broker.
(9) Assembling, under the direction of the broker,
materials obtained in the course of a loan transaction for submission to a
prospective lender or loan committee, providing the final determination as to
completeness or compliance is made by the broker.
(10) Communicating with a service provider in
connection with a loan transaction to determine when reports or other information
needed concerning any aspect of the transaction will be delivered, or when certain
services will be performed or completed.
(11) Mailing, delivering, picking up, or arranging
the mailing, delivery, or picking up of documents or instruments related to the loan
transaction, including obtaining signatures to the documents or instruments from
principals, parties or service providers in connection with the loan transaction, as
long as the nonlicensed employee does not interpret or explain the content,
relevance, significance or effect of the document or signature and such documents or
instruments have been reviewed and approved in writing by the broker.
(12) Contacting a prospective lender to determine
the status of a loan application.
(13)
Responding to an inquiry or notifying a prospective borrower or his or her agent of
the status of the loan application as long as the nonlicensed employee does not
interpret or explain the relevance, significance or effect of that status. A
nonlicensed employee may communicate omissions to a party or principal to the loan
as long as the nonlicensed employee does not interpret or explain the relevance or
significance of those omissions.
(14)
Preparing and completing documents and instruments under the supervision and
direction of the broker if the final documents or instruments will be or have been
reviewed and approved in writing by the broker.
(15) Arranging or making appointments for third
party service providers to enter the real property securing the loan, or arranging
or making appointments for the prospective borrower or lender to meet with the
broker, lender or other party or service provider in connection with the
loan.
(b) As used in this
section the terms "loan" or "loan transaction" mean a loan secured directly or
collaterally by a lien on real property which is a residential mortgage loan
transaction, as defined in Section
50003 of the
Financial Code and where the lender is an institutional lender, as defined in
Section
50003 of the
Financial Code. Other than the acts specifically authorized by this Section, at no
time may the nonlicensed employee perform any acts for which a real estate license
is required within the meaning of Section
10131(d)
of the Business and Professions Code.
(c) As used in this Section and in Section
10133.1(c) of the Code the term "employee" means a person in the service of a broker
under any appointment or contract of hire, express or implied, oral or written and
for whom the broker is obligated to withhold income tax payments and provide workers
compensation insurance and unemployment insurance.
(d) As used in this Section, the term "written
approval" shall consist of the broker's signature or initials affixed by the broker
to a copy of the instrument being approved along with the date of the approval. The
broker shall retain a copy of the approval for a period of three years from the date
the approval was made. A broker may delegate to a broker or salesperson employed by
the broker the authority to provide written approval so long as the broker does not
relinquish overall responsibility for supervision of nonlicensed persons acting
under this Section.
1. New section
filed 11-9-2000; operative 12-9-2000 (Register 2000, No. 45). For prior history, see
Register 96, No. 46.
Note: Authority cited: Sections
10080
and
10133.1,
Business and Professions Code. Reference: Section
10133.1,
Business and Professions Code.
