CA MLO cheat sheet

DFPI licenses MLOs employed by CRMLA or CFLL licensees; DRE licenses MLOs who hold a California real estate broker or salesperson license.

NMLS is the system of record for MLO license applications, renewals, and public license lookup in California.

The SAFE Act requires each MLO to have a unique NMLS ID; an MLO may not originate residential mortgage loans without a valid license.

Pre-licensure education is 20 hours through NMLS-approved courses, including federal law, ethics, nondiscriminatory lending, and California-specific content.

An MLO license requires a criminal background check, credit report, and fingerprints; the license renews annually through NMLS.

Continuing education is 8 hours annually, with required topics including federal law, ethics, nondiscriminatory lending, and California law.

A California MLO license is tied to the sponsoring licensee; a change of employer must be processed through NMLS.

DFPI and DRE enforce separate licensing tracks but both apply SAFE Act standards and NMLS records.

CRMLA is Division 20 of the California Financial Code and is administered by DFPI.

A CRMLA license is required to make or service residential mortgage loans as a lender or servicer unless an exemption applies.

Covered loans are generally secured by residential real property improved with one to four dwelling units.

CRMLA licensees must maintain books and records, file required annual reports, and submit to DFPI examination.

CRMLA prohibits unlicensed residential mortgage lending and servicing; exemptions include banks, credit unions, and certain government entities.

A CRMLA licensee must notify DFPI of required changes in ownership, control, or key personnel and obtain approvals when required.

CRMLA licensees must comply with applicable federal and state disclosure laws, including TILA/RESPA and California disclosures.

CFLL, now commonly called the California Financing Law, is Division 9 of the Financial Code and is administered by DFPI.

A license is required for finance lenders and brokers making covered consumer loans unless an exemption applies.

Exemptions include banks, credit unions, and certain DRE-licensed real estate brokers acting under Real Estate Law authority.

CFL licensees generally must maintain a surety bond in an amount set by statute or DFPI based on license type or loan volume.

CFL licensees must keep books and records of loan transactions and submit reports to DFPI, which may examine for compliance.

CFL prohibits fraudulent advertising and requires disclosure of loan terms and costs to borrowers.

A CFL finance lender license authorizes making covered consumer loans; a broker license authorizes negotiating loans for others.

DRE licenses real estate brokers and salespersons; a DRE MLO license endorsement is required to originate residential mortgage loans.

DRE MLO applicants must complete 20-hour NMLS pre-license education and pass the SAFE MLO exam.

A DRE MLO license requires fingerprint and background checks and a credit report.

The DRE MLO endorsement renews annually through NMLS; the underlying DRE real estate license renews separately every four years.

DRE MLOs must provide the Mortgage Loan Disclosure Statement (MLDS) to borrowers.

DRE licensees must retain transaction records, including loan documents and disclosures, for at least three years.

DRE may deny, suspend, or revoke a real estate or MLO license for fraud, misrepresentation, or unlicensed activity.

DRE MLOs must complete 8 hours of NMLS-approved continuing education annually.

A Loan Estimate must be delivered or placed in the mail within three business days after a mortgage application is received.

A Closing Disclosure must be received by the borrower at least three business days before consummation.

The APR expresses the yearly cost of credit, including interest and certain finance charges, as a percentage of the loan amount.

One discount point equals one percent of the loan amount and is paid upfront to obtain a lower interest rate.

The Mortgage Loan Disclosure Statement (MLDS) is a California disclosure required for DRE-licensed brokers; it states loan terms, costs, and broker compensation.

California generally limits interest to 10 percent per year, but licensed lenders and brokers and certain loan types may be exempt.

RESPA limits mortgage escrow account cushions to one-sixth of the estimated total annual disbursements.

High-cost mortgage loans trigger additional federal and California disclosure and conduct requirements.

The California Homeowner Bill of Rights restricts dual tracking: a servicer cannot record a notice of default or continue foreclosure while a complete loan modification application is pending.

HBOR requires a single point of contact for borrowers in foreclosure who request loss mitigation assistance.

In nonjudicial foreclosure, a Notice of Default is recorded after default and begins the borrower's reinstatement period.

A Notice of Sale must be published at least 20 days before the scheduled foreclosure sale.

Under HBOR, a borrower may reinstate the loan until five business days before a scheduled foreclosure sale.

Prohibited conduct includes fraud, misrepresentation, false advertising, and charging unearned fees.

Foreclosure consultants may not collect upfront fees before performing services, and certain contracts may be voided.

California nonjudicial foreclosure generally provides no post-sale right of redemption.