California Mortgage Broker License |
 California Mortgage Broker License Searching for a mortgage broker school for earning your California mortgage broker license? Then you've come to the right place! The Mortgage Training Center offers self-study, in-person, and online mortgage broker training from state-approved mortgage broker schools to help you earn your California mortgage broker license. California Mortgage Broker Licensing Requirements How do I find a mortgage broker school for earning a California mortgage broker license? You start by making sure you meet the state licensing requirements, then you must take the required training and pass the California mortgage brokers license exam. Eligibility Requirements In California, one of the most active states for Mortgage Brokers, there are two separate approaches to becoming a Mortgage Broker, each with its own rules and responsibilities. One is under the California Department of Corporations, www.corp.ca.gov, based on the California Finance Lenders Law (CFL). The other is under The California Department of Real Estate (DRE), www.dre.cahwnet.gov. Mortgage Brokers licensed under the California Department of Real Estate may perform regular broker and negotiating business with banks, savings & loans, credit unions, and thrift & loans. Mortgage Brokers licensed under the Department of Corporations may only negotiate loans with a lender licensed under the California Finance Lenders Law. Here is more detailed information on the two approaches you may use to become a Mortgage Broker in California. A Mortgage Broker licensed under the California Finance Lenders Law (CFL) of the Department of Corporations is also referred to as being a Negotiator, or having a Negotiator License. Those holding this license are only authorized to negotiate loans or perform any act as a negotiator in connection with loans that are made by a Licensed Lender under the California Finance Lenders Law. This means the Mortgage Broker may not make any direct loans under this license, nor negotiate or broker loans to banks, savings & loans, thrift & loans, or credit unions. The license issued under the California Finance Lenders Law may be applied for by individuals, partnerships, LLCs, or corporations. Once issued, the license is not transferable or assignable. The same application form is used for both CFL Mortgage Brokers and Mortgage Lenders. When applying for a CFL Mortgage Broker License in California applicants pay a non-refundable Investigation Fee and a non-refundable Application Fee. Mortgage Broker applicants need to obtain and maintain a Surety Bond in the amount of $25,000. CFL Mortgage Broker applicants must provide proof of U.S. Citizenship, or else proof of one’s Alien Status. Detailed information of the Mortgage Broker applicant’s past, including the applicant’s prior ten-year residence and work history, including all names and addresses, is required as part of the application form. What are applicants ‘not’ required to do? Take an examination or take many hours of continuing education courses. Licensing under the California Department of Real Estate (DRE): California does not actually have a separate Mortgage Broker License. When someone obtains a California Real Estate Broker License they are automatically licensed to function as a Mortgage Broker. This means they can list and sell real estate, and also negotiate loans secured by real estate, whether first mortgages or subordinate mortgages. If someone is licensed as a Mortgage Broker in a state other than California they still need to obtain a California Real Estate Broker License in order to broker or negotiate even one loan in California. However, it is possible to co-broker a loan with someone who is already licensed in California and share the commission. Requirements for obtaining a California Real Estate Broker’s License include being at least 18 years of age, and either a U.S. Citizen or proof of Alien status. The applicant must take a thorough examination covering all aspects of the real estate business and real estate financing. The examination fee is $50, and two college-level statutory courses (different than continuing education courses) must be finished before taking the examination. One also needs to take 45 hours of approved continuing education courses after becoming a Mortgage Broker in California. When applying for the DRE Mortgage Broker License in California the applicant pays a license fee, plus a fingerprinting fee. Mortgage Brokers must have a physical office in California, and any loan officers working in the office must also provide fingerprints and take the approved examination. Advertising any type of real estate services over the internet in California, including those of a Mortgage Broker, requires a California Real Estate Brokers License. The advertising is considered to be solicitation of a California resident if/when read by a California resident, so all ads must contain a disclaimer stating the ad is not valid in California. Find Training For Earning Your California Mortgage Brokers License To find mortgage broker schools or self-study training for earning your California mortgage brokers license, select your state and license type from the "Licensing/Designation" section of the search box below. Find Seminars, Webinars, And Online Training In Your Area Related Links California Department of Real Estate 2201 Broadway Sacramento, CA 95818-2500 Phone (916) 227-0900 Disclaimer This information provided is based on state laws and regulations, and is subject to change. While TrainingCenter makes every effort to make sure this information is current and accurate, it is not engaged in rendering legal or professional advice, and shall not be held responsible for inaccuracies contained herein. |
