This addendum contains two disclosures. The first is provided pursuant to the provisions of Cal. Civ. Code § 1812.30(j) informing applicants that if they are married they may apply for separate accounts. This provision applies to all mortgage entities in California.
The second one is provided pursuant to the provisions of Cal. Fin. Code §§ 22203 & 22204 and applies only to licensees under the California Finance Lenders Law (CFL). It allows for the applicant to specify what he intends to do with the loan proceeds, so that the lender can rely on such statement to determine whether the loan being extended is, in fact, a consumer loan.
Traditionally we have been printing both of these disclosures in the same addendum, with a checkbox which lenders can mark to indicate that the CFL applies to them. In order to improve the document, we will be making the following changes:
1. The body of the disclosure made pursuant to the provisions of the CFL and its citations will be configured to print when “California License Type” equals either “CA Finance Lenders Law” or is not set. If the field is not set, the checkbox referred to above will also print (it will not print if the field is set).
2. The reference in the disclosure to the Department of Corporations will be updated to refer to the Department of Business Oversight.
3. The legal citations will be modified to more closely match Blue Book standards.
These changes will take effect on April 15, 2014. If you have any questions or concerns about these changes, please contact Client Support at 1.800.497.3584.
April 8, 2014