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California Residential Mortgage Lending Act


Act that provides mortgage bankers with laws and regulations they must adhere to in the servicing and origination of mortgage loans. Furthermore, the act provides and authorizes licensees the ability to fund, service, or manage loans used for the construction of real property.


The California Residential Mortgage Lending Act, enacted in 1994, was created to regulate the activities of mortgage bankers and established new practices for the mortgage industry. The act applies to companies who assist, service, or provide loans to borrowers of residential real estate for properties between one to four units. The following groups are exempt:

Licensed California Real estate brokers

Institutional lenders: banks, savings and loan associations

Individuals providing mortgage loans

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