California mortgage licensing

Mortgage Broker and/or Lender Licensing

License:  California Finance Lender License

Physical Office Required:  No
Qualifying Individual Required: Yes, QI is just a designation. One individual must be licensed as a CA MLO.
Minimum Net Worth:  $50,000 (broker) $250,000 (lender)
Financial Statements:  Unaudited (not compiled)
Surety Bond Amount:  $25,000
Company License Fee:  $400

Mortgage Lender Licensing

License:  California Residential Mortgage Lender License

Physical Office Required:  No
Qualifying Individual Required:  No
Minimum Net Worth:  $250,000
Financial Statements:  Audited
Surety Bond Amount:  $50,000
Company License Fee:  $1,000

Regulated by:

California Department of Business Oversight, Division of Corporations
320 West 4th Street, Suite 750
Los Angeles, California 90013-2344

NMLS_Inquiries@corp.ca.gov
Phone: 213-576-7565
Fax: 213-576-7181

www.dbo.ca.gov

 

Click on a state below for specific licensing information

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California Financing Law License Requirements

To obtain a Financing Law License (CFL) in California, which is required for certain types of lending activities, including residential mortgage lending and brokering, you need to follow specific steps outlined by the California Department of Financial Protection and Innovation (DFPI). Below is a general guide on how to obtain this license:

  1. Determine Eligibility: Ensure you meet the eligibility criteria set by the DFPI. Generally, you must be at least 18 years old, have a clean criminal record, demonstrate financial responsibility, and meet any additional requirements specified by the DFPI.

  2. Pre-Licensing Education: Complete the required pre-licensing education courses. In California, this typically involves completing 20 hours of NMLS-approved pre-licensing education for mortgage loan originators. The courses cover topics such as federal and state mortgage laws, ethics, lending standards, and consumer protection.

  3. Pass the NMLS Exam: Successfully pass the SAFE Mortgage Loan Originator Test administered by the Nationwide Multistate Licensing System & Registry (NMLS). This exam evaluates your knowledge of federal and state mortgage regulations and lending practices.

  4. Register with the NMLS: Create an account and register with the Nationwide Multistate Licensing System & Registry (NMLS). This is where you’ll submit your licensing application and manage your license information.

  5. Complete the Licensing Application: Submit the CFL license application through the NMLS. Provide all required information accurately and ensure that all supporting documents are submitted.

  6. Background Check and Fingerprints: Undergo a criminal background check and provide fingerprints through the NMLS. This is to ensure that you meet the character and fitness requirements for licensure.

  7. Financial Statements: Provide an unaudited financial statement prepared in accordance with Generally Accepted Principals dated within 90 days of the date of the application.

  8. Business Plan: Upload a business plan on the plan of business form.

  9. Surety Bond and Financial Responsibility: Obtain a surety bond as required by the DFPI. The bond amount may vary based on factors such as loan volume. You’ll also need to demonstrate financial responsibility, which may involve providing financial statements or other documentation.

  10. Errors and Omissions Insurance: Obtain Errors and Omissions (E&O) insurance coverage for your lending activities. This insurance protects you against liability for errors or omissions in professional services provided to clients.

  11. Pay Fees: Pay the required application and licensing fees to the DFPI. Fee amounts can vary, so check with the department for the current fee schedule.

  12. Maintain Compliance: Ensure ongoing compliance with all state and federal regulations governing lending activities in California. This includes maintaining accurate records, adhering to advertising guidelines, and fulfilling any continuing education requirements.

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California Real Estate Corporation License Mortgage Loan Originator License Endorsement Requirements

To obtain a Real Estate Corporation License with a Mortgage Loan Originator (MLO) License Endorsement in California, you need to follow specific steps outlined by the California Department of Real Estate (DRE) and the Nationwide Multistate Licensing System & Registry (NMLS). Here’s a general guide on how to obtain this license endorsement:

  1. Meet Eligibility Requirements:

  2. Ensure your real estate corporation meets the eligibility criteria set by the DRE. This typically includes being legally formed, having designated officers, and meeting any financial and character requirements.

  3. Designate Officers and Key Personnel:

  4. Appoint officers and key personnel within your real estate corporation who will be involved in mortgage loan origination activities. These individuals will need to obtain individual MLO licenses.

  5. Pre-Licensing Education:

  6. Ensure that all designated officers and key personnel complete the required pre-licensing education courses. This typically involves completing 20 hours of NMLS-approved pre-licensing education for mortgage loan originators.

  7. Pass the NMLS Exam:

  8. Successfully pass the SAFE Mortgage Loan Originator Test administered by the NMLS. This exam evaluates knowledge of federal and state mortgage regulations and lending practices.

  9. Register with the NMLS:

  10. Create an account and register your real estate corporation and its designated officers and key personnel with the NMLS.

  11. Complete the Licensing Application:

  12. Submit the real estate corporation license application through the DRE. Provide all required information accurately and ensure that all supporting documents are submitted.

  13. Background Checks and Fingerprints:

  14. Ensure that all designated officers and key personnel undergo a criminal background check and provide fingerprints through the NMLS. This is to ensure that they meet the character and fitness requirements for licensure.

  15. Surety Bond and Financial Responsibility:

  16. Obtain a surety bond for your real estate corporation as required by the DRE. The bond amount may vary based on factors such as loan volume. You’ll also need to demonstrate financial responsibility, which may involve providing financial statements or other documentation.

  17. Errors and Omissions Insurance:

  18. Obtain Errors and Omissions (E&O) insurance coverage for your real estate corporation’s mortgage loan origination activities. This insurance protects your corporation against liability for errors or omissions in professional services provided to clients.

  19. Qualifying Individual:

  20. The designated broker/officer must be listed as the “Qualifying Individual” on Form MU1. Both the business address and the Qualifying Individuals address must match.

  21. Control Person:

  22. Individuals who are non licensed officers and stockholders owning more than 10% of corporate stock do not need to create an MU4 filing but need to be listed on the MU2.

  23. Pay Fees:

  24. Pay the required application and licensing fees to the DRE. Fee amounts can vary, so check with the department for the current fee schedule.

  25. Maintain Compliance:

  26. Ensure ongoing compliance with all state and federal regulations governing real estate corporations and mortgage loan originators in California. This includes maintaining accurate records, adhering to advertising guidelines, and fulfilling any continuing education requirements.