Important Mortgage Loan Activity Licensing Requirements - Senate Bill 36/SAFE ACT

NEW FILING REQUIREMENTS FOR LICENSEES WHO CONDUCT RESIDENTIAL OR COMMERCIAL MORTGAGE LOAN ACTIVITIES GO INTO EFFECT ON JANUARY 1, 2010

By January 31, 2010, or within 30 days of commencing the activity whichever is later, all licensees must report to the Department of Real Estate if they make, arrange or service loans secured by real property. This requirement applies to both residential and commercial businesses. The report must be completed online using Form RE 866- Mortgage Loan Activity Notification. Future business activity reporting will also be required.

Penalty fees can apply for failure to submit this required notification. Penalties are fifty dollars ($50) per day for the first 30 days the report is not filed and one hundred dollars ($100) per day for every day thereafter not to exceed a maximum of $10,000.

• Additional background information
• Senate Bill 36