Section 7113.1 - Inability to Sell Loans(a) A non-depository financial institution engaged in the business of mortgage banking shall not be in violation of the Act or of these regulations if it denies an application for financial assistance under the following conditions: (1) Such institution does not have any commitment from a purchaser of loans to buy a loan made or acquired in conformance with the application; and(2) Such institution has referred the application to at least two other financial institutions which provide such financial assistance through means other than mortgage banking and who in the normal course of business accept such referrals and each of such other institutions has denied the application upon the terms and conditions requested.(b) Documentation showing compliance with the foregoing conditions shall be retained by the financial institution in the form of a written statement signed on behalf of the institution, and shall set forth (1) Facts regarding the lack of commitments referred to in subparagraph (a)(1) above, including the primary reasons therefore;(2) The names of the financial institutions referred to in subparagraph (a)(2) above; and(3) The action taken by such institutions.Cal. Code Regs. Tit. 21, § 7113.1
Note: Authority cited: Section 35814, Health and Safety Code. Reference: Sections 35810- 35815, Health and Safety Code.