California Mortgage

A California Mortgage, like most western states, is slightly different from eastern states in that strictly specking it is not a mortgage but a deed of trust.

The most important feature of a California mortgage is the fact that it is foreclosed through a trustee sale as opposed to a judicial foreclosure process.

One more distinguishing factor of a California mortgage is the fact that the rate is slightly higher than the national average. Mortgage rates have always been somewhat higher than the national average in all west coast states.

California mortgage lenders are regulated by one of the following three regulatory agencies:

The Federal Reserve Board: Which regulates the activities of the banks.
The Department of Real Estate: Which regulates California mortgage lenders and brokers.
The Department of Corporations: Which regulates California mortgage bankers and Brokers.

A California Mortgage broker, lender or banker can choose to be licensed by the California department of Real Estate or the Department of Corporations. The biggest difference between the two agencies is that the DRE requires individual agents to be licensed whereas the DoC has no restriction.

Employees of Banks regulated by the Federal Authorities do not need to be individually licensed in order to originate a California Mortgage.

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