Cal. Code Regs. tit. 10 § 1950.123

Current through Register 2024 Notice Reg. No. 25, June 21, 2024

Section 1950.123 - Surrender of License as a Residential Mortgage Lender, Mortgage Servicer, Residential Mortgage Lender and Servicer, or Mortgage Loan Originator

(a) An application to surrender a license as a residential mortgage lender, mortgage servicer, residential mortgage lender and servicer, or mortgage loan originator shall be filed on Form(s) MU1, MU2, MU3, or MU4 through NMLS in accordance with its procedures for transmission to the Commissioner. A licensee shall amend every branch office application Form MU3 and terminate the sponsorship of all mortgage loan originators.

(b) Prior to surrendering its license, a residential mortgage lender, mortgage servicer, or residential mortgage lender and servicer must file a plan for approval by the Commissioner. The plan shall contain the licensee's detailed proposal for the orderly closing out of its residential mortgage lending or residential mortgage loan servicing business. At a minimum, the plan shall contain the following:

(1) A detailed description of the plan to process to completion any loan applications pending that were received before the decision to surrender the license was made. In the alternative, the plan may describe the process for cancellation or completion of the loan by another licensee or exempt person.

(2) A detailed description of the plan to transfer the licensee's existing servicing portfolio, including the time frame within which the transfer will be completed.

(3) The time frame required for payout to the lender of all payments received from the borrowers, or the time frame required for transfer of payments received to another servicing licensee or exempt person.

Cal. Code Regs. Tit. 10, § 1950.123

1. New article 3 (section 1950.123) and section filed 11-25-96; operative 12-25-96 (Register 96, No. 48).
2. Amendment of section heading and section filed 4-1-2010 as an emergency; operative 4-1-2010 (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 A Certificate of Compliance must be transmitted to OAL by 9-28-2010 or emergency language will be repealed by operation of law on the following day.
3. Amendment of section heading and section refiled 9-28-2010 as an emergency; 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 A Certificate of Compliance must be transmitted to OAL by 12-27-2010 or emergency language will be repealed by operation of law on the following day.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. Amendment of section heading and 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 subsection (b)(1), transmitted to OAL 3-14-2011 and filed 4-25-2011; amendments operative 5-25-2011 (Register 2011, No. 17).

Note: Authority cited: Section 50304, Financial Code. Reference: Section 50123, Financial Code.

1. New article 3 (section 1950.123) and section filed 11-25-96; operative 12-25-96 (Register 96, No. 48).
2. Amendment of section heading and section filed 4-1-2010 as an emergency; operative 4-1-2010 (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.
3. Amendment of section heading and section refiled 9-28-2010 as an emergency; 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. Amendment of section heading and 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 subsection (b)(1), transmitted to OAL 3-14-2011 and filed 4-25-2011; amendments operative 5-25-2011 (Register 2011, No. 17).