California
Department of Real Estate (DRE) Defines what non-licensed
employees of Mortgage Brokers may do by defining "Negotiation".
Section
2841 has now been submitted by DRE to the Office of Administrative
Law for approval. The non-licensee may do the following:
Perform
services on behalf of the broker as long as the non-licensee
is a W-2 employee of the broker.
Distribute and circulate loan materials provided the broker
has reviewed and approved it in writing.
Distribute written factual information on loan terms, conditions
and qualification requirements to prospective borrowers
and discuss the information with the prospective borrower
in general terms as long as no counseling or advice on which
is best is provided to the borrower. In other words, give
the borrower rate and term on various loan products without
recommending anyone of them.
Notify the prospective borrower of the information needed
to complete the loan application as long as no counseling
or advice is given.
Complete the 1003 without providing counseling or advice.
Enter information from the prospective borrower into a preformatted
computer database.
Accept and provide receipt for credit or appraisal report
fees.
Prepare and mail requests for VOE's, VOD's, credit reports
or appraisal reports and transmit them to the broker.
Assemble documents for submission to prospective lenders.
Contract service providers to obtain reports or other information
needed to complete the loan process.
Mail, deliver or arrange for pick up of documents including
obtaining signatures to the documents from principals as
long as the non-licensee does not explain or interpret the
documents. Documents must be reviewed and approved by broker
in writing.
Contact lender to check on loan status.
Inform borrower of status of loan as long as no interpretation
is given as to the significance of any missing documents
or the status of the loan. This means the non-licensee cannot
tell the borrower without the missing documents the loan
cannot go forward or will not be approved or words of similar
import.
Prepare and complete final documents under supervision and
direction of broker as long as the documents have been or
will be approved by the broker in writing.
Arrange or make appointments as necessary for third party
service providers such as appraisers to enter property,
etc.
The
import is the broker must initial and date almost every document
in the loan file. The broker may delegate this to a salesperson
or other broker employed by him. However the person must
be employed by the broker.
