A man owns a house and has a first deed of trust executed against the home. He has a substantial amount of equity in the home. He needs a loan of $9,600 for college tuition for his son. A real estate broker arranges the loan, which is secured by the home. What document does the broker need for this transaction?
A. Real property security statement
B. Mortgage loan disclosure statement
C. Real property securities license
D. None of the above
Answer: B. Mortgage loan disclosure statement
Explanation: California's Mortgage Loan Broker Law requires a real estate broker who provides loan services to give the borrower a disclosure statement. It must list all of the costs involved in obtaining the loan and state the net amount the borrower will receive after the costs have been deducted.
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