Section 1950.314.4 - Books and Records(a) Each licensee shall maintain a loan log which shall be kept current according to the record maintenance procedures of the licensee and shall be produced for examination by the Commissioner. Any report which the licensee generates may be substituted for the loan log. At a minimum, the loan log or its substitute shall contain the following with respect to each loan application received during the previous 36 months:(7) If closed, disposition of the loan and servicing.(b) Each licensee shall maintain for each mortgage loan application the following data, if utilized by the licensee in connection with the mortgage loan application, for 36 months from the date of final entry: (3) Truth-in-Lending Disclosure Statement;(4) Loan Closing Statement;(5) Copy of Note and Deed of Trust;(6) Adverse Action or Rejection of Application Letter;(c) The following books and records are to be retained by the residential mortgage lender, residential mortgage lender and servicer, or residential mortgage loan servicer: (1) Ledger cards or electronic ledger entries which have a balance remaining.(2) For all loans with a remaining balance: (A) All documents signed by the customer, including but not limited to the initial loan application, disclosure documents and closing documents.(B) The appraisal and credit report as well as all other third party documents relating to the loan; and(C) All other documents in or related to the loan file.(d) The following books and records shall be retained by the residential mortgage lender, residential mortgage lender and servicer, or residential mortgage loan servicer for a minimum of 36 months from the date of final entry: (1) General ledger and expense ledger.(2) Journals, including the general journal and cash journal or other records of cash receipts and disbursements.(3) Monthly financial reports.(4) Borrowers' ledger cards which were reduced to a zero balance.(5) For loans which have been closed: (A) The original initial loan application;(B) Copies of all documents signed by the customer, including but not limited to the disclosure documents and closing documents;(C) The appraisal and credit report as well as all other third party documents relating to the loan;(D) The escrow instructions and the closing statement issued by an independent escrow holder on a residential mortgage loan in which the proceeds of that loan were disbursed to that escrow holder.(E) All other documents in or related to the loan file.(e) The records specified in subsections (a), (b), (c) and (d) shall be maintained in a form (which may include electronic and other data storage technology) accessible to the inspection of the Commissioner within ten (10) calendar days after notice and in a form which permits the production of transcripts readily and economically.(f) Bank statements shall be retained for a minimum of thirty-six (36) months after the date of posting to the bank statement, except as authorized in writing by the Commissioner.(g) Other records, except daily data processing printouts, shall be maintained in accordance with subsections (c) and (d), unless an earlier destruction date is authorized in writing by the Commissioner.(h) Upon a showing of good cause, the Commissioner may direct a residential mortgage lender, residential mortgage lender and servicer, or residential mortgage loan servicer to maintain certain records for periods in addition to those prescribed in this section.(i) Secondary Market Information. If a licensee sells, assigns or purchases any loans or any servicing of loans, the licensee shall retain the following documents for 36 months from the date of each transaction, as part of its books and records to be examined by the Commissioner:(1) The contract and delivery schedules detailing loans sold, assigned or purchased; and(2) The contract and delivery schedules detailing servicing sold, assigned or purchased.(j) All licensees shall maintain a record keeping system which shall demonstrate the following fees if charged to the mortgage applicant by the licensee: (k) 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, § 1950.314.4
1. New section filed 11-25-96; operative 12-25-96 (Register 96, No. 48).
2. Change without regulatory effect amending subsections (a), (b), (d), (f) and (i) filed 2-24-99 pursuant to section 100, title 1, California Code of Regulations (Register 99, No. 9). Note: Authority cited: Section 50304, Financial Code. Reference: Sections 50124, 50301 and 50314, Financial Code.
1. New section filed 11-25-96; operative 12-25-96 (Register 96, No. 48).
2. Change without regulatory effect amending subsections (a), (b), (d), (f) and (i) filed 2-24-99 pursuant to section 100, title 1, California Code of Regulations (Register 99, No. 9).