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Pass California

Financing, 9% of the examination

Article 7

The California rules capping commissions and costs a broker may charge on certain broker-arranged loans.

The limit varies by the size and term of the loan, applying to first trust deeds under a threshold amount and junior liens under a lower one. It is one of the most distinctly Californian financing rules and appears reliably on the examination.

See it in a question

One question from Financing, so the term lands in the context the exam uses it in.

Financing ยท 9%Mortgages/Deeds of Trust/Notes

California lenders overwhelmingly use a deed of trust rather than a mortgage. What practical difference matters most to a defaulting borrower?

Written to DRE's published topic list. Not a real examination question, since reproducing those is a misdemeanour under B&P Code section 123.

Where this is tested

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