Violations in the compliance of California’s Threshold and Multi-Lender Broker reporting requirements are very common, largely due to the confusing nature of those requirements. Thus, as a mortgage broker in California, it is important to have some guide or a road map to help them avoid violations. In the case they are already in violation, this article will help you figure a way out.

There are three main criteria for brokers to file threshold broker reports:

  1. They are licensed and regulated by the California Department of Real Estate;
  2. They broker transactions to private investors or fund trustees with a net worth of less than $15 million;
  3. They have met a range of successive time period criteria, which includes price limits for contract exchange negotiations within a given time period.

Indeed, for brokers that meet these thresholds or reporting criteria, it is important that they notify the authorities by filing necessary threshold notifications, quarterly trust fund status reports, annual trust account reviews, and annual business activity reviews.

Click here for a detailed report of these requirements and how to avoid violations in complying with them. You can also speak to a counsel immediately if you feel you might already be in violation.

Note Servicing Center provides professional, fully compliant loan servicing for private mortgage investors so they can avoid the aggravation of servicing their own loans and just relax and get paid.

Contact us today for more information.