2840. Approved Borrower Disclosure Statements.
(a) The Commissioner shall publish and make available to interested persons as official forms of the Bureau of Real
Estate Forms RE 882 (Rev. 8/08) and RE 883 (Rev. 8/08) which are incorporated by reference. Forms RE 882 and RE
883 contain approved format and content for the disclosure statement required by subdivision (a) of Section 10240 of
the Code and Section 10241 of the Code.
(b) The publication of the forms pursuant to subdivision (a) hereof is for the purpose of aiding real estate licensees in
providing the disclosure of material information to prospective borrowers in a uniform and effective manner.
(c) A real estate broker must obtain the prior written approval of the Commissioner if he/she wishes to use forms
different than those referred to in (a). Forms that do not adequately provide the information required by the forms in
subsection (a) above, as appropriate, and in a format that is easily used by the Bureau will not be approved.

2841. Mortgage Loan Negotiation.
(a) The term "negotiation" as used in Section 10133.1(c) of the Code does not include any of the limited activities
described as follows when done by an employee of a real estate broker under the control, direction and supervision of
the broker:
(1) Preparing and designing advertising relating to loan transactions for broker review and written approval prior to
its distribution, circulation, use or publication.
(2) Distributing, circulating, using or publishing preprinted brochures, flyers, fact sheets or other written materials
relating to loans secured by real property which the broker can make or negotiate and which have been reviewed
and approved in writing by the broker prior to their being distributed, circulated or published. Materials subject to
this subdivision may not contain the name, address or telephone number of the nonlicensed employee.

(3) Providing written factual information about loan terms, conditions or qualification requirements to a prospective
borrower that has been either prepared by the broker, or reviewed and approved in writing by the broker. A
nonlicensed employee may discuss such information with a prospective borrower in general terms, but may not
provide counseling or advice to a prospective borrower.
(4) Notifying a prospective borrower of the information needed in order to complete a loan application without
providing counseling or advice to a prospective borrower.
(5) Entering information provided by the prospective borrower on a pre-printed application form without providing
counseling or advice to a prospective borrower.

(6) Entering information provided by a prospective borrower or third party into a preformatted computer database.
(7) Accepting and providing a receipt on behalf of a broker for funds received from a prospective borrower for
credit or appraisal fees.
(8) Preparing and mailing requests for verification of employment, verification of deposits, credit reports or
appraisal reports. Obtaining such reports for transmission to the broker.



(9) Assembling, under the direction of the broker, materials obtained in the course of a loan transaction for
submission to a prospective lender or loan committee, providing the final determination as to completeness or
compliance is made by the broker.

(10) Communicating with a service provider in connection with a loan transaction to determine when reports or
other information needed concerning any aspect of the transaction will be delivered, or when certain services will
be performed or completed.
(11) Mailing, delivering, picking up, or arranging the mailing, delivery, or picking up of documents or instruments
related to the loan transaction, including obtaining signatures to the documents or instruments from principals,
parties or service providers in connection with the loan transaction, as long as the nonlicensed employee does not
interpret or explain the content, relevance, significance or effect of the document or signature and such documents
or instruments have been reviewed and approved in writing by the broker.

(12) Contacting a prospective lender to determine the status of a loan application.
(13) Responding to an inquiry or notifying a prospective borrower or his or her agent of the status of the loan
application as long as the nonlicensed employee does not interpret or explain the relevance, significance or effect
of that status. A nonlicensed employee may communicate omissions to a party or principal to the loan as long as
the nonlicensed employee does not interpret or explain the relevance or significance of those omissions.
(14) Preparing and completing documents and instruments under the supervision and direction of the broker if the
final documents or instruments will be or have been reviewed and approved in writing by the broker.
(15) Arranging or making appointments for third party service providers to enter the real property securing the loan,
or arranging or making appointments for the prospective borrower or lender to meet with the broker, lender or other
party or service provider in connection with the loan.
(b) As used in this section the terms "loan" or "loan transaction" mean a loan secured directly or collaterally by a lien
on real property which is a residential mortgage loan transaction, as defined in Section 50003 of the Financial Code and
where the lender is an institutional lender, as defined in Section 50003 of the Financial Code. Other than the acts
specifically authorized by this Section, at no time may the nonlicensed employee perform any acts for which a real
estate license is required within the meaning of Section 10131(d) of the Business and Professions Code.
(c) As used in this Section and in Section 10133.1(c) of the Code the term "employee" means a person in the service of
a broker under any appointment or contract of hire, express or implied, oral or written and for whom the broker is
obligated to withhold income tax payments and provide workers compensation insurance and unemployment insurance.

(d) As used in this Section, the term "written approval" shall consist of the broker’s signature or initials affixed by the
broker to a copy of the instrument being approved along with the date of the approval. The broker shall retain a copy of
the approval for a period of three years from the date the approval was made. A broker may delegate to a broker or
salesperson employed by the broker the authority to provide written approval so long as the broker does not relinquish
overall responsibility for supervision of nonlicensed persons acting under this Section.

2841.5. Recordation of Trust Deeds – Multi-Lender Loans.
A real estate licensee who negotiates a promissory note secured by a trust deed on real property pursuant to Section
10238 of the Code shall cause the trust deed to be executed naming as beneficiaries the lenders or their nominee (who
shall not be the licensee or the licensee's nominee) and shall cause the trust deed to be recorded, with the county recorder
of the county in which the real property is located prior to the time that any funds are disbursed, except when the lender
has given written authorization for prior release. If funds are released on the lenders' written authorization, the trust
deed shall be recorded, or delivered to the lenders or beneficiaries with a written recommendation that it be recorded
forthwith, within 10 days following release.

2842. Approved Borrower Disclosure Statement for Nontraditional and Subprime Mortgage Products.
(a) Notwithstanding Section 2840 of these regulations, the Commissioner shall publish and make available to interested
persons as an official form of the Bureau of Real Estate Form RE 885 (Rev. 8/08) which is incorporated by reference,
with approved format and content for the disclosure statement referred to in subdivision (a) of Section 10240 of the
Code and Section 10241 of the Code.
(b) The publication of the form pursuant to subdivision (a) hereof is for the purpose of aiding real estate licensees in
providing the disclosure of material information in a uniform and effective manner to prospective borrowers relating to



home loans on one-to-four unit single-family residences whose loans involve a “nontraditional mortgage product” as
that term is defined in subsection (c) below.
(c) For the purpose of this regulation, a “nontraditional mortgage product” is a loan that allows borrowers to defer
repayment of principal or interest. Such products include, but are not limited to, interest only loans where a borrower
pays no loan principal for a period of time and payment option loans where one or more of the payment options may
result in negative amortization.
A “nontraditional mortgage product” does not include reverse mortgages or home equity lines of credit (other than
simultaneous second lien loans).

(d) A real estate broker must obtain the prior written approval of the Commissioner if he/she wishes to use a form
different than that referred to in subsection (a) above with a nontraditional mortgage product. Forms that do not
adequately provide the information required by Sections 10240 and/or 10241 of the Code, as appropriate, and in a
format that is easily used by the Bureau, will not be approved.
2842.5. Completed Written Loan Application
For purposes of Section 10240 of the Code, a loan application shall be considered complete when the licensee receives
or has prepared a written application on an application form or forms normally used by the lender for a Federally Related
Mortgage Loan, and as to non-federally related mortgage loans, when the licensee receives or has prepared a written
application on an application form or forms normally used by a lender or the licensee.

2843. Restrictions on Chargeable Costs and Expenses.
No “costs and expenses of making the loan” referred to in Section 10241 (a) which have not been paid, incurred or
reasonably earned by the broker shall be charged to the borrower. No fee may be charged to a borrower as part of the
costs and expenses of making the loan which exceeds the fee customarily charged for the same or comparable service
in the community where the service was rendered.
If the escrow depositary for a loan transaction is a licensed escrow agent, a title insurance company, a bank or trust
company or a savings and loan association, and a fee is charged to the borrower by the escrow depositary for the escrow
function, no additional fee may be charged by the broker, a salesperson licensed to the broker or any entity controlled
by the broker for services related to the conduct of an escrow.

2844. Lending Practices for Nontraditional and Subprime Mortgage Products.
(a) A real estate broker acting within the meaning of Section 10131.1 of the Code shall adopt and adhere to the policies
and procedures set forth in the guidance on nontraditional mortgage product risks published on November 14, 2006, by
the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators, and the
Statement on Subprime Mortgage Lending published on July 17, 2007, by the aforementioned entities and the National
Association of Consumer Credit Administrators, and which are incorporated by reference.

(b) Pursuant to subdivision (a), a real estate broker shall, at a minimum, adopt and adhere to the following:
(1) Risk Management Practices
(A) Consider a borrower's ability to repay the mortgage loan according to its terms as the primary basis for
making the loan rather than the foreclosure or liquidation value of the collateral.
(B) Ensure that a loan results in an identifiable benefit to the borrower and refrain from inducing a borrower to
repeatedly refinance a loan in order to charge high points and fees each time the loan is refinanced.
(C) Fully disclose the true nature of the mortgage loan obligation, or ancillary products to the borrower.
(2) Underwriting Standards

(A) Analyze a borrower's repayment capacity to include an evaluation of his/her ability to repay the loan by
final maturity at the fully indexed rate, assuming a fully amortizing repayment schedule. For products that
permit negative amortization, a repayment analysis should be based on the initial loan amount plus any balance
increase that may accrue from the negative amortization.

(B) Avoid combining nontraditional loan features such as interest-only or negative amortization loans with
reduced documentation or simultaneous second-lien loans (piggyback) unless there are mitigating factors such
as high credit scores, low loan to value ratios (LTVs) and debt to income ratios (DTI), significant liquid assets,
mortgage insurance or other credit enhancements.



(C) Accept stated income or reduced documentation only if there are mitigating factors that clearly minimize
the need for direct verification of the borrower's repayment. The mitigating factors shall be documented.
(D) When setting introductory rates on adjustable rate mortgages, consider the spread between the introductory
rate and the fully indexed rate to minimize negative amortization, "payment shock" and earlier-than-scheduled
recasting of monthly payments. Pursuant to the Statement on Subprime Mortgage Landing ". . . [p]ayment shock
refers to a significant increase in the amount of the monthly payment that generally occurs as the interest rate
adjusts to a fully indexed basis. Products with a wide spread between the initial interest rate and the fully
indexed rate that do not have payment caps or periodic interest rate caps, or that contain very high caps, can
produce significant payment shock".

(E) When making loans to borrowers ensure that such programs do not feature terms that could become
predatory or abusive as described in the "Statement on Subprime Mortgage Lending" under "Predatory Lending
Considerations" and the "Guidance on Nontraditional Mortgage Product Risks" under "Lending to Subprime
Borrowers".

(F) Qualify borrowers financing non-owner occupied investment properties on their ability to service the debt
over the life of the loan and require evidence that the borrower has sufficient cash reserves to service the loan
considering the possibility of extended periods of property vacancy and the variability of debt service
requirements associated with nontraditional mortgage loan products.
(G) Qualify a borrower's repayment capacity by a debt-to-income (DTI) ratio that includes an assessment of the
borrower's total monthly housing-related payments (e.g. principal, interest, taxes and insurance) and total
monthly obligations as a percentage of gross income.
(3) Control Systems

(A) Design compensation programs that avoid providing incentives for originations inconsistent with sound
underwriting and consumer protection principles. Such programs should not result in the steering of consumers
to products resulting in payment shock or containing prepayment penalties, balloon payments or a higher cost
due to reduced documentation or stated income, to the exclusion of other products for which the consumer may
qualify.
(B) Monitor the quality of third-party originations so that they reflect the broker's lending standards and
compliance with the Real Estate Law, Regulations of the Real Estate Commissioner and other applicable state
and federal laws and regulations.
(4) Consumer Protection
(A) In approving loans, primarily consider the borrower's ability to repay the loan according to its terms.
(B) Assist the consumer in selecting a product by providing information that enables the consumer to understand
material terms, costs, and risks of loan products.
(C) When offering mortgage product descriptions and advertisements, provide clear, detailed information about
the costs, terms, features, and risks of the loan to the borrower including:
 Potential payment shock

 Negative amortization

 Prepayment penalties

 Balloon payments

 Cost of reduced documentation loans

 Responsibility for taxes and insurance

(D) Provide monthly statements to consumers who have Payment Option adjustable rate mortgages (ARMs)
which include information that enables consumers to make informed payment choices, and which include an
explanation of each payment option available and the impact of that choice on loan balances.



(E) Avoid leading borrowers who have Payment Option ARMs to select a non-amortizing or negatively
amortizing payment.

2845. Interpretive Opinion Request.
(a) A request for an interpretive opinion pursuant to Section 10236 of the Code shall be addressed to the Headquarters
Office of the Bureau to the attention of Chief Counsel.
(b) An interpretive opinion request shall satisfy each of the following conditions:

(1) The request shall clearly state that it is a request for an interpretive opinion pursuant to Section 10236 of the
Code.

(2) The request shall be addressed to a specific transaction or transactions or to a narrowly-defined course of conduct
or business practice. The persons or entities on whose behalf the request is made shall be identified. If the persons
or entities cannot be identified by name at the time of the request, they must be identified by their capacities in the
transaction, course of conduct, or business practice. If the person requesting the opinion knows of persons other
than those on whose behalf the request is made who intend to engage in a transaction, course of conduct, or business
practice in reliance upon the opinion, such information shall also be included in the request for opinion.
(3) The nature of the transaction, course of conduct, or business practice, the capacities of parties to the transaction,
and relevant details about it shall be described. Instruments, or other documents that will be used in the transaction,
course of conduct, or business practice, completed in illustrative form to explain the transaction, course of conduct,
or business practice, shall be appended to the request.
(4) The question or questions central to the opinion request shall be specifically and narrowly framed.
(c) Attorneys at law seeking interpretive opinions on behalf of clients shall include with the opinion requests, their own
analyses of the issues presented by the request, their views with respect to the issues presented and citations of legal
authority in support of those views.

2846. Approved Lender/Purchaser Disclosure Statement.
(a) The commissioner shall publish and make available to interested persons as an official form of the Bureau of Real
Estate, an approved format and content for the disclosure statements referred to in subdivisions (a) and (b) of Section
10232.5 of the Code.
(b) The publication of a form pursuant to subdivision (a) hereof is for the purpose of aiding real estate licensees in
providing information of significance to prospective lenders and purchasers of promissory notes secured by real
property and real property sales contracts in a uniform and effective manner. The form shall not constitute the only
format or prescribed content that will satisfy the requirements of Section 10232.5 of the Code. The commissioner will
entertain requests for approval of a proposed disclosure statement not in conformance with the form published pursuant
to subdivision (a) only from persons who have established to the satisfaction of the commissioner that the request for
approval is made on behalf of 25 or more real estate brokers who are subject to subdivision (e) of Section 10232 of the
Code.

2846.1. Material Change – Multi-Lender Loans.
A material change requiring an amended notice under Section 10238(a) of the Code shall include but shall not be limited
to the following:

(a) A change of the month in which the broker's fiscal year ends.
(b) A change with respect to whether the broker is (or expects to be) required to file reports of inspection of its trust
account(s) with the Real Estate Commissioner pursuant to paragraph (3) of subdivision (k) of Section 10238 of the
Code.

(c) A change with respect to the identity of the Servicing Agent.

2846.5. Report of Annual Trust Fund Accounts Review.
(a) The annual report of a review of trust fund financial statements required under subdivision (a) of Section 10232.2
and/or subdivision (o) of Section 10238 of the Code shall include confirmation by an independent public accountant
that:
(1) The broker maintains those records specified in Sections 2831 and 2831.1 of these regulations, and reconciles
such records in accordance with Section 2831.2 of these regulations.



(2) Each trust fund bank account is maintained by the broker in compliance with Sections 2832 and 2834 of these
regulations.
(3) The accountant has reviewed the accompanying balance sheet of trust funds held by the broker as of the last day
of the fiscal year, and the accompanying statement of receipts and disbursements of trust funds and changes in cash
for the fiscal year, in accordance with standards established by the American Institute of Certified Public
Accountants.
(4) The accountant is not aware of any material modifications that should be made to the trust fund financial
statements in order for them to be in conformity with generally accepted accounting principles.

(5) The adjusted balance(s) of the bank trust account(s) maintained by the broker as shown in the accompanying
financial statements were on deposit as of the financial statements date.

(6) The trust fund bank account balance(s) and receipts and disbursements shown on the financial statements agreed
with the amounts reflected on the cash records specified in Section 2831 of these regulations.

(7) The trust fund liability balance for each open account as itemized in the financial statements agreed with the
amount reflected on the separate beneficiary records specified in Section 2831.1 of these regulations.

(b) In preparing the report referred to in subdivision (a), the accountant may incorporate qualifying representations or
disclaimers substantially as follows:
(1) All information included in the financial statements examined by the accountant are representations of the broker
or of responsible officers of the broker.
(2) The review by the accountant consisted principally of inquiries of company personnel and analytical procedures
applied to financial data. It was substantially less in scope than an examination in accordance with generally
accepted auditing standards, the objective of which is the expression of an opinion regarding the financial statements
taken as a whole. The report therefore includes no such opinion.

(c) In lieu of complying with subdivision (a) above, a broker may satisfy subdivision (a) of Section 10232.2 and/or
subdivision (o) of Section 10238 of the Code by submitting the report by a California independent public accountant of
an audit of the trust fund financial statements of the broker in which the accountant expresses an unqualified opinion
that the financial statements fairly present, in conformity with generally accepted accounting principles, (1) the trust
fund position of the broker at the end of the fiscal year and (2) a compilation of receipts and disbursements of trust
funds for the fiscal year.

(d) The annual report of a review of trust fund financial statements shall include the following financial statements:
(1) Balance sheet of trust funds held by the broker as of the last day of the fiscal year. Each of the trust fund bank
accounts shall be identified, either in the balance sheet or in the notes thereto, by name of bank and account number.
(2) Statement of receipts and disbursements of trust funds and changes in cash for the fiscal year.
(3) Schedule of trust fund liability balances showing each open beneficiary account in connection with trust funds
received in carrying on the activities described in subdivisions (d) and (e) of Section 10131 of the Code.

2846.7. Delayed Filing of Annual Trust Account Report.
(a) A real estate broker whose fiscal year ends between the last day of November and the last day of February inclusive
shall regularly have until the following May 31 in which to file the report required by subdivision (a) of Section 10232.2
or subdivision (o) of Section 10238 of the Code.
(b) A real estate broker whose fiscal year ends between March 1 and November 29 inclusive shall file the report required
by subdivision (a) of Section 10232.2 or subdivision (o) of Section 10238 of the Code not later than 90 days after the
end of the fiscal year unless the broker shall have previously obtained written authorization from the Bureau to file the
report more than 90 days after the end of the fiscal year.

2846.8. Quarterly Trust Fund Status Report.
(a) The Commissioner shall publish and make available to interested persons as an official form of the Bureau, an
approved format and content for the Trust Fund Status Report described in Section 10232.25 of the Code.



(b) The publication of a form pursuant to subdivision (a) is for the purpose of aiding real estate licensees in complying
with Section 10232.25 of the code. The form prescribed by the Commissioner shall not constitute the only format or
content that will satisfy the requirements of Section 10232.25.

2847. Voluntary Submission of Proposed Advertising.
(a) A real estate broker may submit for the Bureau's approval advertising proposed to be used in connection with the
performance of acts for which a real estate license is required pursuant to Section 10131.1 or subdivision (d) or (e) of
Section 10131 of the Code.
(b) Proposed advertising copy shall be submitted to the Sacramento office of the Bureau. Written or graphic advertising
shall be submitted in the format in which it will be displayed to the public. A written script shall be submitted for radio
or television advertisements. A submission of advertisement to the Bureau shall be accompanied by the maximum fee
set forth in Section 10232.1 of the Code.

2847.3. Disclosure of License and Issuing Department.
(a) Use of either of the following statements shall satisfy the requirements of Sections 10235.5 and 17539.4 of the Code.

(1) Real estate broker, California Bureau of Real Estate.
(2) California Bureau of Real Estate, real estate broker. The words “California” and “Bureau” may be abbreviated
only as “CA” or “CAL” or “Calif” and “Bur”. A dash (- -) may be used in lieu of the comma appearing in the
statements set forth above in paragraphs (1) and (2).
(b) The type size of the statement shall be no less than the smallest size type used in the advertisement copy.

(c) Use of either statement as set forth in subdivision (a) will also satisfy the designation requirements of Section
10140.6(a) and (c) of the Code.

2848. Advertising Criteria.
(a) In administering Sections 10232.1 and 10235 of the Code, the commissioner shall take such action as is appropriate
to prevent or halt the publication of advertising that is false, misleading or deceptive in itself or through the omission
of information necessary to make a representation not misleading in the context in which it is used. To this end, the
commissioner may disapprove or require verification of representations in advertising submitted pursuant to Section
10232.1 of the Code, or Section 2847 of these regulations.
In addition to the actual text, consideration shall be given to such factors as format, pictorial display and emphasis in
determining whether an advertisement is likely to create a false impression.

By way of illustration and not of limitation, advertising containing any of the following is considered to be false,
misleading or deceptive and will not ordinarily be approved for publication by the commissioner:

(1) The use of “guaranteed,” “insured,” “bonded,” “sure,” “safe,” “sound” or other words or phrases of similar
import to describe or characterize the security of lenders' or purchasers' funds, or the return to lenders or purchasers
from the use of their funds, without an accompanying statement of fact supporting the use of the words or phrases
implying high security. A representation to the effect that no losses or minimal losses have been sustained by lenders
or purchasers doing business with the licensee shall include the period of time to which the representation applies.
(2) The use of terms in the comparative or superlative degree to describe any aspect of the business of the licensee,
or any terms applicable to loans negotiated by the licensee, without such additional information as necessary to
make the representation unambiguous in the context in which it is used.
(3) A statement that the licensee represents any lender enumerated in Section 10133.1(a) of the Code unless the
licensee has a contractual arrangement to act as agent or representative for such lender.

(4) An implication contrary to the fact that the licensee will act in the capacity of a lender rather than as an agent or
that a borrower will be able to obtain a loan without deductions from the principal amount for the payment of
commissions, costs and expenses customarily attendant upon mortgage loan broker transactions.
(5) A representation of a specific installment in repayment of a loan without an equally prominent disclosure of the
following information about the loan:
(A) Principal amount

(B) Simple annual interest rate



(C) Annual percentage rate
(D) Number, amount and period of payments scheduled to the date of maturity

(E) Balance due at maturity (balloon payment) if not fully amortized.
(6) A representation of a specific installment payment, interest rate, annual percentage rate or other provision
concerning a loan unless it is clearly indicated whether the advertised terms are available for first loans, junior loans
or for both first and junior loans.
(7) A representation or implication that loans are available on terms more favorable to the borrower than terms then
generally available in the community through mortgage loan brokers or other sources for loan funds unless the
advertised terms are in fact then available to a borrower without the application of undisclosed, special conditions
or restrictions to qualify the borrower or the security for the loan.

(8) A representation or implication that loans are available on terms more favorable to the borrower than terms then
generally available in the community through mortgage loan brokers or other sources for loan funds unless the
broker has previously presented evidence satisfactory to the commissioner that the advertising is not illusory or
deceptive in light of all relevant factors of the broker's business practices including the amount of loan funds
prospectively available to meet borrower demands in response to the advertising.
(9) A representation that loans are available at or to a maximum percentage of market value unless there is a
disclosure as to how market value will be determined for purposes of a loan transaction.
(10) A representation or implication that the credit rating or other personal financial data of the prospective borrower
will not be a factor in determining eligibility for a loan unless the broker in fact neither conducts nor causes to be
conducted any investigation or inquiry into any aspect of any prospective borrower's credit rating or into his personal
financial circumstances for the purpose of determining his qualifications for a loan.
(11) A representation or implication that a loan can or will be approved by telephone.

(12) A representation implying that the Bureau or any other governmental agency has endorsed or approved any
aspect of the licensee's business activities. A statement that the offering referred to in the advertisement is being
made under authority of a permit issued by the Bureau or by the Department of Business Oversight without more,
will not be considered to be a representation implying endorsement or approval by a governmental entity.

(13) A representation or implication contrary to fact as to the number and location of offices maintained by the
licensee for the conduct of his/her mortgage loan brokerage business.
(14) Use of “investment plan,” “growth plan,” or similar term to describe a program of a licensee carrying on
activities described in Section 10131.1.
(15) The use of “savings,” “savings plan” or terms of similar import indicating that the licensee is engaged in
business activities requiring a particular license, permit or authority unless the licensee then has such a license,
permit or authority.
(16) A representation of a simple annual interest rate without an equally prominent disclosure of the annual
percentage rate.
(17) A representation of an installment in repayment of an adjustable rate, interest only or payment-option loan
without an equally prominent disclosure of the following information about the loan:

(A) Principal amount
(B) Term of loan
(C) Initial interest rate

(D) Number of months the initial interest rate will be in effect
(E) Fully-indexed interest rate
(F) Maximum interest rate

(G) If different, an explanation of the difference between the payment rate, initial interest rate and fully-indexed
rate.



(H) Annual percentage rate
(I) How often the interest rate and payments can change

(J) Maximum periodic change in the interest rate and payments (periodic caps)
(K) Number of months and percentage of original loan amount after which minimum payments will not be
accepted and the loan re-amortizes
(L) The monthly payment based on the maximum interest rate, and the loan balance after all negative
amortization is included, assuming minimum payments are made

(M) If the loan contains a prepayment penalty, a statement to that effect
(N) If the loan contains a balloon payment, a statement to that effect

(18) A statement that the licensee can arrange “low doc/no doc”, “no income/no asset”, “stated income”, “stated
asset”, “no ratio” or similar loan products without a statement that these products may have a higher interest rate,
more points or more fees than other products requiring documentation.
(19) The failure to include a statement, in an advertisement for investments in trust deeds secured by one or more
interests in real property, that “investments in trust deeds secured by one or more interests in real property are
subject to risk of loss”. Any advertisements, for investments in trust deeds secured by one or more interests in real
property shall be retained for a period of three years from the date of its last publication or use. After notice,
advertisements for investments in trust deeds secured by one or more interests in real property shall be made
available for examination, inspection, and copying by the commissioner or his or her designated representative
during regular business hours.

2849.01. Annual Report Format.
For reports submitted to the Bureau, the following format shall be used by a real estate broker who meets the criteria of
section 10232 and/or 10238 of the Code for the annual report required by section 10232.2(c) and 10238(p).

MORTGAGE LOAN/TRUST DEED ANNUAL REPORT
(Business and Professions Code Section 10232.2(c) or 10238(p))

________________________________________________________________________________
NAME OF REPORTING BROKER (CORPORATION OR INDIVIDUAL)
________________________________________________________________________________
PRINCIPAL BUSINESS ADDRESS
This report covers mortgage loan brokerage and trust deed and from (month/day/year) to (month/day/year) real property sales
contract transactions for the period from (month, day, year) to (month, day, year).
During the reporting period, mortgage loan/trust deed business activities were conducted by the reporting broker and his affiliates
at the following address(es) in addition to the principal business address above:
________________________________________________________________________________________________________
________________________________________________________________________________________________________
______________________________________________________________
1
Report Data Article 7 Other
Loans Loans
I. LOANS ORIGINATED AS AGENT
[B&P Code Section 10131(d)]
TOTAL LOANS
Number ....................................................................... _______ _______
Aggregate Principal Amount ...................................... $ _______ $ _______
Total Commissions Received from All Loans
Originated as Agent .................................................... $ _______ $ _______
A. MULTIPLE LENDER LOANS
(FRACTIONALIZED)
2
1) Total Number of Loans.................................... _______ _______
2) Aggregate Principal Amount ........................... $ _______ $ _______
3) Aggregate Number of Investors....................... _______ _______



B. LOANS TO REFINANCE
3
LOANS PREVIOUSLY NEGOTIATED BY
REPORTING BROKER OR AFFILIATE
4
1) Number ............................................................ _______ _______
2) Aggregate Principal Amount ........................... $ _______ $ _______

C. BALLOON PAYMENT AND INTEREST-
ONLY LOANS
1) Number ............................................................ _______ _______
2) Aggregate Principal Amount ........................... $ _______ $ _______
D. LOANS COVERED UNDER FINANCIAL
11
CODE SECTION 4970
1) Number ............................................................ _______ _______
2) Aggregate Principal Amount ........................... $ _______ $ _______
II. LOANS ORIGINATED AS PRINCIPAL
(FUNDED BY BROKER) FOR RESALE
[B&P Code Section 10131.1]
TOTAL LOANS
Number ....................................................................... _______ _______
Aggregate Principal Amount ....................................... $ _______ $ _______
Loan Origination Fees (Points) of all Loans
Originated as Principal Funded for Resale .................. $ _______ $ _______
A. LOANS TO REFINANCE LOANS
3
PREVIOUSLY NEGOTIATED BY
4
REPORTING BROKER OR AFFILIATE
1) Number ............................................................ _______ _______
2) Aggregate Principal Amount ........................... $ _______ $ _______
B. BALLOON PAYMENT AND INTEREST-
ONLY LOANS
1) Number ............................................................ _______ _______
2) Aggregate Principal Amount (at maturity) ...... $ _______ $ _______
C. PRINCIPAL (BROKER FUNDED) LOANS
RESOLD
1) Single Purchaser
a) Number ......................................................... _______ _______
b) Aggregate Selling Price ............................... $ _______ $ _______
2
2) Multiple Purchasers (Fractionalized)
a) Number ......................................................... _______ _______
b) Aggregate Selling Price ............................... $ _______ $ _______
c) Aggregate Number of Purchasers ................. $ _______ $ _______
D. LOANS COVERED UNDER FINANCIAL
CODE SECTION 4970
11
1) Number ............................................................ _______ _______
2) Aggregate Principal Amount ........................... $ _______ $ _______
III. COSTS AND EXPENSES PAID BY
BORROWERS TO THE BROKER IN
ORIGINATED LOAN TRANSACTIONS
5
Total ............................................................................ $ _______ $ _______
Retained by Broker or Affiliate for Services ............... $ _______ $ _______
IV. LOANS FOR BROKER’S USE OR All Loans/Sales
BENEFIT [B&P Code Section 10231.2]
6
A. Total Number ....................................................... _________________
B. Number of Fractionalized Loans .......................... _________________
C. Aggregate Amount Borrowed .............................. $ _________________
V. SALES OF NOTES AS AGENT
[B&P Code Section 10131(e)]



TOTAL LOANS
A. Number ............................................................... __________________
B. Aggregate Selling Price ....................................... $ __________________
C. Commissions Received ........................................ $ __________________
D. Multi-Lender Sales (Fractionalized)
1) Number of Loans ............................................. __________________
2) Aggregate Number of Lenders/Investors ......... __________________
3) Aggregate Selling Price ................................... $ __________________
4) Commissions Received.................................... $ __________________
VI. RESALES AS PRINCIPAL OF NOTES
PURCHASED BY BROKER
[B&P Code Section 10131.1]
TOTAL LOANS
A. Number ................................................................ __________________
B. Aggregate Purchase Price .................................... $ __________________
C. Aggregate Resale Price ........................................ $ __________________
D. Multi-Lender Resales (Fractionalized)
1) Number of Loans ............................................. __________________
2) Aggregate Number of Investors....................... __________________
3) Aggregate Selling Price ................................... $ __________________
4) Commissions Received.................................... $ __________________
VII. SALES OF REAL PROPERTY SALES (RPS)
CONTRACTS AS AGENT OR PRINCIPAL
7
[B&P Code Sections 10131(e) and 10131.1]
A. Number ................................................................ __________________
B. Aggregate Selling Price ....................................... $ __________________
VIII. NOTE AND RPS CONTRACT SERVICING
A. Total Number of Notes and/or Contracts
Serviced During Reporting Period ....................... __________________
B. Number of Fractionalized Notes Serviced ........... __________________
C. Total Dollar Amount of Payments Collected
from the Borrowers During the Reporting Period
including Payoffs ................................................ $ __________________
8
D. Total Dollar Amount of Payments Collected
from the Borrowers on Fractionalized Loans
During the Reporting Period, including Payoffs $ __________________
10
E. Total Dollar Amount of Loans Serviced ............. $ __________________
9
F. Total Dollar Amount of Fractionalized Loans
Serviced ............................................................. $ __________________
10
G. Total Late Charges Received During the
Reporting Period .................................................. $ __________________
H. Total Late Charges Retained by Broker ............... $ __________________
I. Number of Loans Prepaid .................................... __________________
J. Total Amount of Prepayment Penalties Paid by
Borrowers ............................................................ $ __________________
K. Total Amount of Prepayment Penalties Retained
by Broker ............................................................. $ __________________
L. Total Other Broker Charges for Servicing ........... $ __________________
M. Number of Notices of Default Filed .................... __________________
N. Number of Trustee’s Sales, Judicial Sales or
Deeds in Lieu of Foreclosure Recorded ............... __________________

CERTIFICATION
To the best of my knowledge and belief the information contained in this report is true and correct.
_____________________________________________________________________________
SIGNATURE OF BROKER OR DESIGNATED LICENSED OFFICER DATE
_____________________________________________________________________________
PRINTED NAME OF BROKER OR DESIGNATED LICENSE NUMBER
LICENSED OFFICER (REPORTING BROKER)



________________________________________________________________________________
NAME OF CORPORATION BUSINESS TELEPHONE NUMBER
If reporting broker is an individual licensee, he/she must sign this report. If reporting broker is a corporate licensee, the corporation’s
designated licensed officer must sign this report.

Footnotes
1. ARTICLE 7 LOANS - Loans of less than $30,000 secured by first deeds of trust on dwellings and loans of less than
$20,000 secured by junior deeds of trust on dwellings.

2. MULTIPLE LENDER LOAN (FRACTIONALIZED) - A loan funded through the sale of or offer to sell a series of
notes secured directly by an interest in the same real property, or the sale of undivided interests in a note secured directly
by real property equivalent to a series transaction.
3. LOAN TO REFINANCE - A loan funded within 90 days of the maturity date of an existing obligation of the borrower
in which 75 percent or more of the proceeds made available to the borrower are applied to pay off the existing obligation.
4. AFFILIATE - Any entity in which an individual reporting broker or an officer, director or shareholder of a corporate
reporting broker has more than a nominal financial interest or from whom the reporting broker receives any form of
compensation for the referral of business in connection with the reporting broker's mortgage loan activities. Should the
affiliate meet the criteria of Section 10232, a separate report must be compiled and submitted for each entity.
5. COSTS AND EXPENSES - For services enumerated in Section 10241(a) (appraisal fees, escrow fees, title charges,
notary fees, recording fees, credit investigation fees) and any other charge made to the borrower. Total amount and
amount retained by the broker, an affiliate or subsidiary.

6. A purchase or loan transaction in which the broker directly or indirectly obtained the use or benefit of the funds other
than for commissions, fees, costs and expenses.

7. REAL PROPERTY SALES (RPS) CONTRACTS - As defined in Section 10029 of the Business and Professions
Code: "Real property sales contract" as used in this part is an agreement wherein one party agrees to convey title to real
property to another party upon the satisfaction of specified conditions set forth in the contract and which does not require
conveyance of title within one year from the date of formation of the contract.
8. Includes payments collected on behalf of obligors.
9. Outstanding principal of each note on the last day of the fiscal year or the reporting period including fractionalized
(multi-lender) loans.
10. Fractionalized (multi-lender) loans only.
11. Refer to Financial Code Section 4970(a) through (e) for the definition of a covered loan.

2849.1. Reporting Transactions Pending at Close of Fiscal Year.
In preparing the report required by Section 10232.2(c) of the Code, a sale or loan transaction shall be considered as
business conducted in the fiscal year in which the escrow for the transaction closed.
Article 17. Prepaid Rental Listing Service