Section 1950.314.1 - Trust Account Books(a) A residential mortgage lender, residential mortgage lender and servicer, or residential mortgage loan servicer shall establish, and maintain current, the following books with reference to its trust accounts: (1) A trust account ledger card for each account detailing receipts and disbursement of all funds deposited by the borrower, lender or seller with the licensee in connection with the origination, closing or servicing of any mortgage loan. The funds shall be held in accordance with the terms of a written agreement between the licensee and such borrower, lender or seller which provides that upon the occurrence of a specific condition or event, the funds or a portion thereof shall be disbursed to the borrower, lender or seller.(2) Liability controlling account;(3) Cash receipt and disbursement journal or a file containing copies of all receipts and checks and/or check stubs of checks issued by the residential mortgage lender or residential mortgage loan servicer as a medium of posting to the records referred to in subsections (a) and (b) in which case adding machine tapes of totals of receipts and checks shall be retained.(b) The records referred to in subsections (a)(1) and (2) shall be reconciled at least once each month with the bank statements of the trust account. The records referred to in subsection (a)(1) shall be reconciled at least once each week with the liability controlling account referred to in subsection (a)(2).(c) Maintenance of records in accordance with generally accepted accounting principles on microfilm, microfiche, or electronic data processing and retrieval systems shall be deemed to be in compliance with the requirements of this section.Cal. Code Regs. Tit. 10, § 1950.314.1
1. New section filed 11-25-96; operative 12-25-96 (Register 96, No. 48). Note: Authority cited: Section 50304, Financial Code. Reference: Sections 50301 and 50314, Financial Code.
1. New section filed 11-25-96; operative 12-25-96 (Register 96, No. 48).