There are two California laws for which Cx878 is given pursuant to. The first is Cal. Civ. Code §2948.5(b), which actually requires the disclosure as well as most of its contents. The second is Cal. Fin. Code §50204(o), which requires a licensee to have “evidence of compliance”with Ibid. §2948.5. “Evidence of compliance” can include one of two things: either an executed certification as set forth in Cal. Civ. Proc. Code §2015.5 or evidence in the loan file that is acceptable to the Commissioner of the Department of Corporations (see Business, Transportation, and Housing Agency Release No. 58-FS, dated August 1, 2007 for details about this type of evidence).
Under Cal. Civ. Proc. Code §2015.5, there are promulgated two model forms of certification, one for use when the certification is made within the State of California and one made either “within or without” the State. Either of these model forms may be modified, as long as they are substantially similar to the model forms.
Currently, Cx878 follows verbatim a sample Per Diem Interest Disclosure that was provided to DocuTech by the Department of Corporations. This sample form uses a form of certification that more closely resembles the certification form that is to be used exclusively within the state, though an argument could be made that it is substantially similar to the “within or without” form and can be used for licensees signing outside of California.
Rather than trying to make this argument, DocuTech will be changing the certification to match the “within or without” form of certification, so that no argument will ever be necessary.
These changes will take effect on October 30, 2012. If you have any questions or concerns about these changes, please contact Client Support at 1.800.497.3584.
October 22, 2012
DR 128963