Section 8024 - Loan Origination and Servicing Agreements(a) The department shall require the project applicant to execute loan origination and/or servicing agreements with the loan originator specified by the project applicant and approved by the department. It shall be the responsibility of loan originators or loan servicers, where servicing responsibilities are not performed by the department, to do the following: (1) accept and review applications for blanket and individual loans and verify information pertaining to the applications;(2) determine each applicant's eligibility for assistance and his/her credit worthiness and ability to make any required payments;(3) make recommendations to approve or deny each application, determine the amount of assistance and submit these recommendations to the department for approval;(4) prepare all loan documents and make necessary arrangements to close the loans;(5) submit loan packages, all documents determining assistance, including executed loan documents to the department subsequent to the close of escrow;(6) transmit loan payments to the department according to a schedule established by the department;(7) notify the department of defaults and delinquencies on program loans and loans which are senior to program loans; and(8) enforce the terms of the notes and deeds of trust or other instruments securing repayment of the program loans.(b) Loan originators and loan servicers shall report to the department and provide certifications to the department concerning their compliance with the terms and conditions of the origination and/or servicing agreement. The department shall periodically monitor the activities of loan originators or loan servicers to verify compliance.(c) Prior to funding any loan the department shall review and approve the loan origination fees and any other fees proposed to be charged by the loan originator or loan servicer. The department may pay such fees to loan originators or loan servicers as provided in the origination and servicing agreement. Such fees shall not exceed the prevailing rate charged by the industry for comparable loans.Cal. Code Regs. Tit. 25, § 8024
1. Amendment filed 5-11-2001; operative 5-11-2001 pursuant to Government Code section 11343.4 (Register 2001, No. 19). Note: Authority cited: Sections 50406(n) and 50786(a), Health and Safety Code. Reference: Sections 50406, 50406.2 and 50786, Health and Safety Code.
1. Amendment filed 5-11-2001; operative 5-11-2001 pursuant to Government Code section 11343.4 (Register 2001, No. 19).