Question

Lancaster salesperson Jamie Dafe has begun to branch out into mortgage brokering. She continues to show homes to clients, but hasn't been actively seeking out new listings. Instead, she acts as a loan broker by buying, selling, or exchanging loans. Which of the following statements applies to Jamie's current situation?A. Jamie may not act as a loan broker unless she is properly licensed as one, under the Mortgage Loan Broker Law, set forth under the California Business and Professions Code, Article 7.B. Jamie may act as a loan broker without receiving any special license, other than her active California real estate broker's license, as long as she follows the stipulations set forth under the Mortgage Loan Broker Law, under Article 7 of the California Business and Professions Code.C. In California, a licensed real estate broker MAY assist the buyer in filling out the loan application for a financial institution, but may NOT arrange for financing for the buyer, or broker loans herself. In Jamie's situation, she is acting out of the realm of her real estate broker's license, and can face monetary damages and/or prison time for violating the California Financial Code AND the California Businessand Professions Code, Article 5.D. In California, anyone who wishes to sell, buy, or exchange loans, must meet two requirements: (1) The person must be licensed as a real estate salesperson or broker in California; and (2) The person must first obtain a Commissioner's Permit to Broker Loans. Jamie needs to fulfill this second requirement before she may legally broker loans in California, under Article 5 of the California Business and Professions Code, which is known as the Mortgage Loan Broker Law.

Answer 1

Answer:

A) Jamie may not act as a loan broker unless she is properly licensed as one, under the Mortgage Loan Broker Law, set forth under the California Business and Professions Code, Article 7.

Explanation:

The loan application must include information regarding the real estate broker and must be signed by both the borrower and the broker.

Section 10241 (i) of the California Business and Professions Code, Article 7 requires:

"A statement containing the name of the real estate broker negotiating the loan, his or her license number, and the address of his or her licensed place of business."