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Recordkeeping Requirements Under The CRMLA And CFLL, Part 2 – Glass & Goldberg | Financing, Property & Bankruptcy Law
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Recordkeeping Requirements Under The CRMLA And CFLL, Part 2

This is the second part of an article on the requirements imposed by the California Residential Mortgage Lending Act (CRMLA) and the California Finance Lenders Law (CFLL) regarding recordkeeping by licensees. Both acts impose certain requirements on licensees, who must keep all of the following types of records:

*Mortgage Application Data. Licensees must maintain the following information for each mortgage loan application:

  • Loan application;
  • Truth-in-Lending Disclosure Statement;
  • Appraisal report;
  • Adverse action or rejection of application letter;
  • Loan commitment;
  • Loan closing statement;
  • Copies of the promissory note and deed of trust;
  • Credit report. (10 CCR §1950.314.4(b))

*Books and Records. Licensees must retain the following records:

  • Both general and expense ledgers;
  • Both general and cash journals;
  • Any other records of cash receipts and disbursements;
  • Monthly financial reports;
  • Borrowers’ ledger cards reduced to a zero balance.

*Closed loans:

  • The original initial loan application;
  • The appraisal, credit report, and other third-party documents;
  • The closing statement and escrow instructions;
  • Copies of all documents signed by the customer;
  • All other related miscellaneous loan documents. (10 CCR §1950.314.4(d))

The CFLL contains minimal instructions about the records that licensees must maintain and include the following (note that additional requirements apply when a loan is sold, transferred, or assigned to a different company):

  • Loan application;
  • The statement of the loan or other disclosure statements used for legal compliance;
  • Promissory note;
  • Security agreement or wage assignment;
  • Payment record;
  • Escrow closing statement, if applicable;
  • Insurance policies, if applicable.

The attorneys at Glass & Goldberg in California provide high quality, cost-effective legal services, and advice for clients in all aspects of commercial compliance, business litigation, and transactional law. Call us at (818) 888-2220, send an email inquiry to info@glassgoldberg.com or visit us online at glassgoldberg.com to learn more about the firm and to sign up for future newsletters.

 

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