Residential Mortgage – Frequently Asked Questions

Licensing Questions

  1. Do I have to take an examination or meet educational requirements for a California residential mortgage lending act (CRMLA) license?
    • There is no testing or examination required. The only examination or educational requirements are for employees who engage in lending and/or brokering activities on behalf of the CRMLA licensee must be licensed mortgage loan originators (MLOs) employed by the licensee.
  2. How do I file in nationwide mortgage licensing system (NMLS) If I am a CFLL or CRMLA sole proprietor?A sole proprietor will always have a dual role in NMLS and require two accounts in NMLS with two login names and passwords.
    • Company account: NMLS treats sole proprietors as “companies” and requires the completion of a Form MU1. Thus, the sole proprietor will likely need access as an Account Administrator or a Company User to the “company’s” Form MU1.
    • Individual account: The sole proprietor will also be identified as a Control Person and requires the completion of a Form MU2. Therefore, the sole proprietor will need to create an Individual Account for themselves as an individual person.

      If a sole proprietor is also required to hold an individual license (e.g. loan originator license), they do not need another NMLS account to file Form MU4. Their individual account and record in NMLS can be used to make both Form MU2 and Form MU4 filings. Additional information can be found on the NMLS website.

Transacting Business as a Residential Mortgage Lender

  1. Must I maintain an office or records within the state of california?
    • No. Licensees are not required to maintain any offices within the State of California.   Licensees are required to submit to the Department’s periodic regulatory examination and the cost of the exam, including the travel expense, shall be paid for by the licensee.
  2. Whom do I contact with questions?
    • Questions are to be directed to the Department at 1-866-275-2677.

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