California generally has three licensing laws which apply to mortgage brokers and lenders: the Real Estate Law (REL), California Finance Lenders Law (CFFL), and California Residential Mortgage Loan Act (CRMLA). Some entities are exempt from these laws or have different requirements which apply to them, such as state and national banks, credit unions, savings and loan associations, and industrial loan companies.
As a result of this four-way system, some state disclosure requirements apply to some licensees and do not apply to others. Most notably, Cal. Code Regs. tit. 21, § 7114 contains a detailed list of the specific California regulatory agencies whose name and contact information must appear on the California Fair Lending Notice (our Cx16170), depending upon what type of entity the mortgage lender is and how they are licensed. For example, REL licensees must disclose the information for the Bureau of Real Estate, while national banks must disclose the information for the Department of Business Oversight.
In order to print the right agency on this form, as well as to provide only the disclosures that are legally required, we have set up a “California License Type” field (Field 51790) which is used to trigger the print conditions for most California documents (e.g. Cx5188 will print when Field 51790 equals “CA Finance Lenders Law” or “Not Selected”), as well as to select the right verbiage which prints on Cx16170. Clients can set this field to the appropriate licensing category and help themselves provide only the disclosures they are required to provide.
Since many of our California documents print depending on how this field is set, we will now be implementing a global, optional field prompt for all California Initial Disclosure and Closing packages if Field 51790 is either missing or empty.
The prompt will take effect on May 22, 2015. If you have any questions or concerns about this change, please contact Client Support at 1.800.497.3584.
May 15, 2015