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#2176525 - 05/03/18 04:54 PM RE Lending to Consumers in CA
Dan Persfull Offline
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 46,702
Bloomington, IN
I just found out we are making a construction loan to a couple living in CA that is building a new home here and will be moving here upon completion of the home.

I know CA has some additional disclosure requirement for loans made to consumers living in CA. Since our loan will be secured by property located in IN and the legal contract will be executed under IN Statutes are there any CA specific disclosures we need to be aware of?
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The opinions expressed are mine and they are not to be taken as legal advice.

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#2177213 - 05/08/18 05:34 PM Re: RE Lending to Consumers in CA Dan Persfull
Vive Accommodare Offline
Platinum Poster
Vive Accommodare
Joined: Apr 2013
Posts: 552
Compliance
Here's a few we provide to borrowers:

Separate Credit Notice (Pursuant to California Civ. Code 1812.30(j))
Voluntary Government Monitoring Information (Pursuant to California Ch. 4, Art. 4, 7114.1)
Document Copies Notice (Pursuant to California Admin. Code tit. 10, 1950.204 for borrowers who request disclosures be delivered via snail mail)
Impound Account Election (Pursuant to California Civ. Code 2954(a))
DBO- Fair Lending Notice (pursuant to California Health & Safety Code 35830)
California Per Diem Interest Charge Disclosure (pursuant to California Civ. Code 2948.5(b)) (in cases where borrower wants to fund immediately following a bank holiday or a Monday)
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"Tact is telling someone to go to [censored] in such a way, they look forward to the trip" Winston Churchill

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#2177234 - 05/08/18 06:41 PM Re: RE Lending to Consumers in CA Dan Persfull
Reg Warrior Offline
100 Club
Joined: Jan 2017
Posts: 191
Also, new fees
The Building Homes and Jobs Act (Gov't Code 27388.1) - a fee of seventy-five dollars ($75) shall be paid at the time of recording of every real estate instrument, paper, or notice required or permitted by law to be recorded, except those expressly exempted from payment of recording fees, per each single transaction per parcel of real property. The fee imposed by this section shall not exceed two hundred twenty-five dollars ($225).
http://leginfo.legislature.ca.gov/faces/...ionNum=27388.1.


- Doesn't apply to purchase mortgages of owner-occupied properties..

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