Cal. Code Regs. tit. 10 § 1950.314.6

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

Section 1950.314.6 - Debit Balances Prohibited

A residential mortgage lender, residential mortgage lender and servicer, or residential mortgage loan servicer shall not withdraw, pay out, or transfer moneys from any loan or servicing account in excess of the amount to the credit of the account at the time of the withdrawal, payment, or transfer.

However, a residential mortgage lender, residential mortgage lender and servicer, or residential mortgage loan servicer may advance its own funds to a loan or servicing account under an impound arrangement to pay taxes, insurance, and other payments, if the required withdrawal, payment, or transfer exceeds the amount of the credit for the account.

Cal. Code Regs. Tit. 10, § 1950.314.6

1. New section filed 11-25-96; operative 12-25-96 (Register 96, No. 48).

Note: Authority cited: Section 50304, Financial Code. Reference: Sections 50124, 50202, 50301 and 50314, Financial Code.

1. New section filed 11-25-96; operative 12-25-96 (Register 96, No. 48).