Broker Supervision under 2725 - Pam Strickland



Commissioner’s Regulation 2725 SupervisionInstruction PageNOTE: Using the REPLACE ALL function of your word processor, update the following items:Replace THISwith THISBkrNameYour Broker’s nameCorpNameLegal name of the corporation (or company name if not a corporation)dbaNameCommonly used name (dba) or corporation name if there is no dba.StreetAddressCompany Street AddressCityStateZipCompany City, State & ZipCodePhoneNumberCompany Phone Number, formatted as: (000) 000-0000If the corporate and dba names are the same, manually delete the duplication in the first and last paragraphs.If either the company name or corporate name has a period at the end (i.e. Inc.), replace “..” with “.”After making the above replacements, delete this instruction page, leaving just the form itself.This form may be printed on letter-sized paper.Pursuant to Commissioner’s Regulation 2725, BkrName, Corporate-Broker of CorpName., dba dbaName, has established the following policies, rules, procedures and systems to review, oversee, inspect and manage:Loan transactions requiring a real estate license originated by a Salesperson or Broker-Associate under written contract to dbaName will be reviewed by BkrName or another designated manager/licensee. In all loan transactions, the loan officer’s work is being reviewed by another individual prior to submission to the lender/investor. Documents in each loan file which may have a material effect upon the rights or obligations of a party to the transaction, such as the Mortgage Loan Application (1003) and the Disclosure Statements (both federal Reg-Z and GFE and state MLDS, when applicable), will be reviewed for completion by BkrName or another designated manager/licensee. These documents are always reviewed by someone other than the loan officer prior to submission to the lender/investor.All loan files originated by Salespersons or Broker-Associates under contract to dbaName will be filed, stored and maintained for a period of no less than three (3) years from the date of the closing or cancellation of the transaction. If dbaName makes the credit decision and declines the file before submitting to a lender, dbaName will send a Notice of Cancellation to the borrower(s) and retain that notice in the file.On any files in which the fees for credit reports and/or appraisals are not received from the borrower or the loan agent prior to the close of the transaction, dbaName will make the payment to the third-party provider of services prior to receiving the funds from the lender or escrow, if at all possible. If these payments are not made prior to the receipt of the funds, then the funds will be treated as Trust Funds. If the borrower pays the appraiser COD, there will be no accounting requirement, since dbaName never sees the check. All advertising of any service for which a BRE license is required must be reviewed and approved by BkrName or another designated manager/licensee before use by a Salesperson or Broker-Associate under written contract to dbaName. Any such advertising will contain the following disclosure: Real Estate Broker-CA Bureau of Real Estate, License #01209915. For Licensing Info, Contact the BRE at 916-227-0931.All Salespersons and Broker-Associates under written contract to dbaName are familiar with the requirements of federal and state laws relating to the prohibition of discrimination due to the training provided under the continuing education requirements of the California Bureau of Real Estate. Additionally, dbaName takes seriously the issues of discrimination in lending and monitors files for adherence to non-discriminatory practices. A copy of the dbaName “Fair Lending Policy Statement” is attached to and made a part of these “Policies and Procedures.”Regular and consistent reports of licensed activities of Salespersons and Broker-Associates under contract to dbaName are available at all times through the processing and accounting systems utilized by dbaName.Even though BkrName may use the services of others to assist in administering the provisions of BRE Section 2725 (Broker Supervision), they do not relinquish overall responsibility for supervision of the acts of Salespersons and Broker-Associates licensed to CorpName, dba dbaName. ................
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