A CRMLA licensee is found to have breached RESPA on 40 California loans and argues that is a federal matter for federal regulators. May the DFPI also act on the RESPA violation under the CRMLA?
Correct Answer
B) A federal breach can be a California violation the DFPI acts on as well
A CRMLA licensee can violate California law by violating federal mortgage statutes such as RESPA, TILA or HOEPA in connection with residential mortgage loans, so the DFPI has its own basis to act. Other choices: state jurisdiction is not displaced by the federal one; a parallel federal case does not oust it; and borrower complaints are not what creates the violation. Source: Cal. Fin. Code § 50326
Why This Is the Correct Answer
A CRMLA licensee can violate California law by violating federal mortgage statutes such as RESPA, TILA or HOEPA in connection with residential mortgage loans, so the DFPI has its own basis to act. Other choices: state jurisdiction is not displaced by the federal one; a parallel federal case does not oust it; and borrower complaints are not what creates the violation. Source: Cal. Fin. Code § 50326
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