Section 1950.204.1 - Changes Affecting Loans in Process(a) If it is determined that an applicant does not qualify for the loan amount, terms or program for which he or she applied, and the costs of another program (if another program is presented or requested) would materially differ from the costs itemized on the Good Faith Estimate, then the licensee shall provide to the applicant, within a reasonable time, a written explanation of the presented or requested program for which the applicant may be qualified. Such explanation shall include but not be limited to detailed information on costs to the applicant or borrower.(b) When any notice is received from a secondary market underwriter, an investor, the Federal Housing Administration or the Veteran's Administration which materially affects a loan in process, the licensee processing the loan application shall so notify the applicant in writing upon receipt of such notice. Examples include but are not limited to future or immediate change of rules or requirements, discontinuation of a specific loan program, or failure by the applicant to qualify.Cal. Code Regs. Tit. 10, § 1950.204.1
1. New section filed 11-25-96; operative 12-25-96 (Register 96, No. 48). Note: Authority cited: Section 50304, Financial Code. Reference: Section 50204, Financial Code.
1. New section filed 11-25-96; operative 12-25-96 (Register 96, No. 48).