Who sets the maximum loan broker commissions?

The maximum loan broker commissions are set by the Real Property Loan Law. This law governs the conduct of person brokering loans and establishes regulations around various aspects of real estate transactions, including the fees that can be charged for brokering these loans. It aims to protect consumers from excessive fees and ensures that the commission rates are fair and transparent.

While the Department of Real Estate oversees licensing and compliance matters concerning real estate professionals in California, it does not specifically set the maximum commission rates. The Federal Housing Administration is primarily responsible for overseeing government-backed mortgage insurance programs, and it does not regulate loan broker commissions. The National Association of Realtors focuses on promoting ethical practices among real estate professionals and does not have the authority to set loan commission limits.

Understanding the role of the Real Property Loan Law is crucial for real estate professionals and consumers alike, as it directly impacts the cost and accessibility of borrowing funds in real estate transactions.