Section 7505.5 Of Article 6. Real Estate Loans From California Financial Code >> Division 2. >> Chapter 6. >> Article 6.
7505.5
. (a) A savings association may make loans the principal
purpose of which is to provide financing with respect to what is, or
what is to become, primarily residential real estate, for which the
association relies substantially on the borrower's general credit
standing and projected future income for repayment, without other
security, or relies on other assurances for repayment, including
guarantees or other obligations of third parties.
(b) An association's aggregate investment in residential real
estate loans described in subdivision (a) shall not exceed an amount
equal to 5 percent of the association's assets.