California Insurance Code 12640.13 – (a) No mortgage guaranty insurer shall pay to any person who is …
(a) No mortgage guaranty insurer shall pay to any person who is acting as agent, representative, attorney or employee of the owner, mortgagee of the prospective owner, or mortgagee of the real property or any interest therein, either directly or indirectly, any commission, or any part of its premium charges or any other consideration as an inducement for or as compensation on any mortgage guaranty insurance business.
(b) Notwithstanding subdivision (a), or the provisions of Section 751, activities of mortgage guaranty insurers in dealing with the secondary mortgage market, which are made available to the mortgage lending industry, whether insureds or not, shall not be deemed to be unlawful rebates or commissions. Included, but not limited to such activities, are the following:
Terms Used In California Insurance Code 12640.13
- Mortgage: includes a trust deed, "mortgagor" includes a trustor under such trust deed, "mortgagee" includes a beneficiary under such trust deed, or a trustee exercising powers or performing duties granted to or imposed upon him thereunder, and "lien" in respect to real or personal property includes a charge or incumbrance arising out of a trust deed. See California Insurance Code 29
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- Mortgage guaranty insurance: means :
California Insurance Code 12640.02
- Mortgagee: The person to whom property is mortgaged and who has loaned the money.
- Person: means any person, association, organization, partnership, business trust, limited liability company, or corporation. See California Insurance Code 19
- Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
(1) Services provided for the purpose of assisting in the purchase or sale of mortgage loans in the secondary market.
(2) Preparation of forms necessary for the sale of mortgage loans in the secondary mortgage market.
(3) Educational seminars dealing with issues affecting the mortgage lending industry.
(Amended by Stats. 1981, Ch. 419, Sec. 1.)