Bona Fide Non-Profit Affordable Housing Organization
The employees of a bona fide nonprofit organization who exclusively originate residential mortgage loans for a bona fide nonprofit organization, and who act as a mortgage loan originator only with respect to residential mortgage loans with terms that are favorable to the borrower are exempt from licensure as a mortgage loan originator pursuant to the California Finance Lenders Law and the California Residential Mortgage Lending Act. (See Financial Code Sections 22013(b) and 50003.5(b), as amended by AB 2666 (Chap. 264, Stats. 2012)).
For a mortgage loan originator to qualify for the exemption, the bona fide nonprofit organization must register with the Department on a form provided by the Department and include specific documentation by December 31st of each year. If the nonprofit organization fails to provide documentation as required by December 31st of each year, or if it does not continue to meet the specified criteria, the Commissioner may revoke the nonprofit organization’s status as a registered bona fide nonprofit organization.
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