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Senate
Bill 36 (SB 36), which was signed into law in October 2009, was enacted in
order to bring California into compliance with the federal Secure and Fair
Enforcement Mortgage License Act (SAFE Act) of the Housing and Economic
Recovery Act of 2008 (Public Law 110-289). After December 31, 2009, new SB 36
requirements for those intending to engage in mortgage loan activities go into
effect.
Per
to SB 36, B&P Section 10166.02, real estate brokers who act pursuant to
B&P Sections 10131(d), 10131(e), or 10131.1 and who make, arrange, or
service loans secured by residential 1-4 unit property, and any salespersons
who act in a similar capacity under the supervision of a broker, must submit a
Mortgage Loan Activity Notification (RE 866) to the Bureau within 30 days of
commencing the activity. The
report must be completed on-line. This means that each licensed broker,
licensed real estate corporation, and licensed salesperson who conducts
residential mortgage loan activities must submit an RE 866.
The
notification will identify the mortgage loan activities being performed as well
as mortgage loan originator activities, specifically.
Penalty
fees apply for failure to submit this required notification. Penalties are
fifty dollars ($50) per day for the first 30 days the report is not filed and
one hundred dollars ($100) per day thereafter for a maximum of $10,000.
Per
B&P Section 10166.07, real estate brokers who act pursuant to B&P
Sections 10131(d), 10131(e), or 10131.1 and who make, arrange, or service loans
secured by residential 1-4 unit property must also file a Business Activity
Report (BAR) for their respective fiscal years. The report must be completed
online. The BAR includes the mortgage loan activities of a broker's
salespersons and broker-associates.
Questions
about these new reporting requirements should be directed to the Mortgage Loan
Activities Section at (916) 263-8941. |
