Mortgage brokers.
Vote required
Majority
Fiscal committee
No
Appropriation
No
Current location
Rules
Take action
Record your position on this measure.
Create an account to record your position, submit testimony, or contact your legislator.
Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Senate
- Passed Assembly
- To Governor
- Became Law
Overview
This bill clarifies the legal obligations of mortgage brokers in California. It reinforces that mortgage brokers acting as agents for borrowers are considered fiduciaries, obligated to prioritize the borrower’s financial interests above their own. The bill also defines key terms related to mortgage brokers and residential mortgage loans to ensure consistent application of these fiduciary duties.
Key provisions
- Strengthens the definition of a mortgage broker to include those arranging residential mortgage loans.
- Explicitly states that mortgage brokers are fiduciaries to borrowers.
- Requires mortgage brokers to prioritize the borrower’s economic interests.
- Defines ‘mortgage brokerage services’ as arranging loans for compensation.
- Defines ‘residential mortgage loan’ based on the number of residential units.
- Lists the types of licensed persons considered mortgage brokers.
- Clarifies that fiduciary duties apply regardless of other agency relationships.
- Amends Section 2923.1 of the Civil Code to reflect these changes.
Who is affected
- Mortgage brokers
- Borrowers obtaining residential mortgages
- Lenders providing residential mortgages
- Real estate brokers
- Finance lenders and brokers
Notable changes
Bill text
Read the latest version inline or switch to a previous version.
Text extraction is in progress. View the official source.
Sponsors
Official sponsors from legislative records.
1 on record
Primary sponsor
Arguments
Reasons offered for and against this legislation.
Arguments in favor
No arguments in favor have been submitted.
Submit yoursArguments opposed
No arguments opposed have been submitted.
Submit yours