Section 1950.122.6 - Supervision of Mortgage Loan Originators(a) Every residential mortgage lender, mortgage servicer, or residential mortgage lender and servicer shall exercise diligent supervision over the mortgage loan origination, lending and servicing activities of every mortgage loan originator that it sponsors.(b) Every mortgage loan originator employed by a residential mortgage lender, mortgage servicer, or residential mortgage lender and servicer shall be subject to the supervision of a branch manager designated by such residential mortgage lender, mortgage servicer, or residential mortgage lender and servicer. Every branch manager shall be identified on Form MU3 and shall submit a Form MU2 to NMLS.(c) Every residential mortgage lender, mortgage servicer, or residential mortgage lender and servicer that sponsored a mortgage loan originator shall establish, maintain, and enforce written procedures, a copy of which shall be kept in each business office, that set forth the procedures adopted by the residential mortgage lender, mortgage servicer, or residential mortgage lender and servicer to comply with the duties imposed by this section.(d) Every residential mortgage lender, mortgage servicer, and residential mortgage lender and servicer shall designate a Supervisor, an individual, who shall: (1) Supervise and periodically review the activities of the branch managers designated pursuant to subsection (b) of this section; and(2) Periodically inspect each business office of the residential mortgage lender, mortgage servicer, or residential mortgage lender and servicer to ensure that the written procedures are enforced.(3) In the event a residential mortgage lender, mortgage servicer, and residential mortgage lender and servicer does not have any branches offices, the supervisor shall directly supervise and review the activities of the mortgage loan originators.(e) The supervisor shall be identified on Form MU1 as a qualifying individual and shall submit a Form MU2. For purposes of this section, a qualifying individual is a person in charge and responsible for the actions of the mortgage lender, mortgage broker, and mortgage lender and broker.Cal. Code Regs. Tit. 10, § 1950.122.6
1. New section filed 4-1-2010 as an emergency; operative 7-31-2010 (Register 2010, No. 14). A Certificate of Compliance must be transmitted to OAL by 9-28-2010 or emergency language will be repealed by operation of law on the following day.
2. Editorial correction of HISTORY 1 (Register 2010, No. 40).
3. New section refiled 9-28-2010 as an emergency, including repealer of subsection (f); operative 9-28-2010 (Register 2010, No. 40). A Certificate of Compliance must be transmitted to OAL by 12-27-2010 or emergency language will be repealed by operation of law on the following day.
4. New section refiled 12-23-2010 as an emergency; operative 12-23-2010 (Register 2010, No. 52). A Certificate of Compliance must be transmitted to OAL by 3-23-2011 or emergency language will be repealed by operation of law on the following day.
5. Certificate of Compliance as to 12-23-2010 order, including amendment of subsections (c), (d)(3) and (e) and NOTE, transmitted to OAL 3-14-2011 and filed 4-25-2011; amendments operative 5-25-2011 (Register 2011, No. 17). Note: Authority cited: Sections 50002 and 50304, Financial Code. Reference: Sections 50002.5, 50124, 50128 and 50141, Financial Code.
1. New section filed 4-1-2010 as an emergency; operative 7-31-2010 (Register 2010, No. 14). A Certificate of Compliance must be transmitted to OAL by 9-28-2010 or emergency language will be repealed by operation of law on the following day.
2. Editorial correction of History 1 (Register 2010, No. 40).
3. New section refiled 9-28-2010 as an emergency, including repealer of subsection (f); operative 9-28-2010 (Register 2010, No. 40). A Certificate of Compliance must be transmitted to OAL by 12-27-2010 or emergency language will be repealed by operation of law on the following day.
4. New section refiled 12-23-2010 as an emergency; operative 12-23-2010 (Register 2010, No. 52). A Certificate of Compliance must be transmitted to OAL by 3-23-2011 or emergency language will be repealed by operation of law on the following day.
5. Certificate of Compliance as to 12-23-2010 order, including amendment of subsections (c), (d)(3) and (e) and Note, transmitted to OAL 3-14-2011 and filed 4-25-2011; amendments operative 5-25-2011 (Register 2011, No. 17).