Senate BillIntroducedCivil
SB 1380: Mortgage brokers.
What SB 1380 does, verified March 5, 2026
This bill aims to amend the existing law regarding mortgage brokers. A mortgage broker is defined as someone who provides brokerage services to a borrower. As a fiduciary of the borrower, the broker is held to certain duties, and violating these duties can result in license law violations. The bill makes nonsubstantive changes to these provisions.
Bill journey
1IntroducedCurrent
2In CommitteePending
3First Chamber FloorPending
4Second ChamberPending
5GovernorPending
6ChapteredPending
Last action: Referred to Com. on RLS. (2026-03-04)Alert me
Author and sponsors
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| Mar. 04, 2026 | Referred to Com. on RLS. |
| Feb. 23, 2026 | Read first time. |
| Feb. 23, 2026 | From printer. May be acted upon on or after March 23. |
| Feb. 20, 2026 | Introduced. To Com. on RLS. for assignment. To print. |
Latest bill textIntroduced version, February 20, 2026 · 525 words
CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION
Senate Bill
No. 1380
| Introduced by Senator Choi |
February 20, 2026 |
An act to amend Section 2923.1 of the Civil Code, relating to mortgages and deeds of trust.
LEGISLATIVE COUNSEL'S DIGEST
SB 1380, as introduced, Choi. Mortgage brokers.
Existing law defines mortgage brokers, provides that a mortgage broker who provides brokerage services to a borrower is a fiduciary of that person, and makes a violation of the broker’s fiduciary duties to that person a violation of the broker’s license law.
This bill would make nonsubstantive changes to those provisions.
The people of the State of California do enact as follows:
SECTION 1.
Section 2923.1 of the Civil Code is amended to read:2923.1.
(a) A mortgage broker providing mortgage brokerage services to a borrower is the fiduciary of the borrower, and(b) For purposes of this section, the following definitions apply:
(1) “Licensed person” means a real estate broker licensed under the Real Estate Law (Part 1 (commencing with Section 10000) of Division 4 of the Business and Professions Code), a finance lender or broker licensed under the California Finance Lenders Financing Law (Division 9 (commencing with Section 22000) of the Financial Code), a residential mortgage lender licensed under the California Residential Mortgage Lending Act (Division 20 (commencing with Section 50000) of the Financial Code), a commercial or industrial bank organized under the Banking Financial Institutions Law (Division 1 (commencing with Section 99) of the Financial Code), a savings association organized under the Savings Association Law (Division 2 (commencing with Section 5000) of the Financial Code), and a credit union organized under the California Credit Union Law (Division 5 (commencing with Section 14000) of the Financial Code).
(2) “Mortgage broker” means a licensed person who provides mortgage brokerage services. For purposes of this section, a licensed person who makes a residential mortgage loan is a “mortgage broker,” and subject to the requirements of this section applicable to mortgage brokers, only with respect to transactions in which the licensed person provides mortgage brokerage services.
(3) “Mortgage brokerage services” means arranging or attempting to arrange, as exclusive agent for the borrower or as dual agent for the borrower and lender, for compensation or in expectation of compensation, paid directly or indirectly, a residential mortgage loan made by an unaffiliated third party.
(4) “Residential mortgage loan” means a consumer credit transaction that is secured by residential real property that is improved by four or fewer residential units.
(c) The duties set forth in this section shall not be construed to limit or narrow any other fiduciary duty of a mortgage broker.
Text of SB 1380 as introduced, from the official record. Connect Plus keeps every version and highlights what changed.Compare versions