Cal. Code Regs. tit. 10 § 1950.314

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

Section 1950.314 - Books and Records: Standard for Keeping

In lieu of the requirements set forth in Sections 1950.314.1 and 1950.314.2 of these rules, a residential mortgage lender, residential mortgage lender and servicer, or residential mortgage loan servicer may maintain its trust account records, books, and other loan records pursuant to the requirements of the Federal Housing Administration, Veterans Administration, Farmers Home Administration, Government National Mortgage Association, Federal National Mortgage Association, or Federal Home Loan Mortgage Corporation, as applicable, or requirements of any other institutional investor to whom loans have been or will be sold, or on whose behalf loans are or will be serviced; provided the institutional investor does all of the following:

(1) requires monthly reconciliations of trust account balances;

(2) requires annual audited financial statements prepared by an independent certified public accountant in accordance with generally accepted accounting principles; and

(3) maintains a contractual right to audit the trust accounts held by the licensee.

Cal. Code Regs. Tit. 10, § 1950.314

1. New article 9 (sections 1950.314-1950.314.7) and section filed 11-25-96; operative 12-25-96 (Register 96, No. 48).

Note: Authority cited: Section 50304, Financial Code. Reference: Sections 50124, 50301 and 50314, Financial Code.

1. New article 9 (sections 1950.314-1950.314.7) and section filed 11-25-96; operative 12-25-96 (Register 96, No. 48).