A real estate licensee who undertakes to service a promissory note secured directly or collaterally by a lien on real property or a real property sales contract shall comply with each of the following requirements:
(a) The licensee shall have a written authorization from the borrower, the lender, or the owner of the note or contract, that is included within the terms of a written servicing agreement that satisfies the requirements of paragraphs (1), (2), (4), and (5) of subdivision (k) of Section 10238.
(b) The licensee shall provide the lender or the owner of the note or contract with at least the following accountings:
(1) An accounting of the unpaid principal balance at the end of each year.
(2) An accounting of collections and disbursements received and made during each year.
(3) Each accounting required under this subdivision shall identify the person who holds the original note or contract and the deed of trust evidencing and securing the debt or obligation for which the accounting has been provided.
(c) The licensee shall provide to the lender or the owner of the note or contract written notification within 15 days of the occurrence of any of the following events:
(1) The recording of a notice of default.
(2) The recording of a notice of trustee’s sale.
(3) The receipt of any payment constituting an amount greater than or equal to five monthly payments, together with a request for partial or total reconveyance of the real property, in which case the notice shall also indicate any further transfer or delivery instructions.
(4) The delinquency of any installment or other obligation under the note or contract for over 30 days.
(Amended by Stats. 2005, Ch. 153, Sec. 2. Effective January 1, 2006.)
Last modified: October 25, 2018