CA MLO flashcards

32 cards. Read the term and the definition here. The deck at the top of this page is optional.

NMLS

Nationwide Multistate Licensing System and Registry; California uses it to process MLO license applications, renewals, and public licensing records.

DFPI MLO oversight

The Department of Financial Protection and Innovation licenses mortgage loan originators employed by CRMLA or CFLL licensees and examines those licensees for compliance.

DRE MLO oversight

The Department of Real Estate licenses mortgage loan originators who hold California real estate broker or salesperson licenses and enforces Real Estate Law.

SAFE Act MLO license

Federal law requiring mortgage loan originators to be licensed or registered, with education, testing, background checks, and unique NMLS identification.

MLO pre-licensure education

20 hours of NMLS-approved coursework before MLO licensure, covering federal law, ethics, nondiscriminatory lending, and California-specific requirements.

MLO annual renewal

California MLO licenses renew annually through NMLS; renewal requires continuing education and timely submission of fees and attestations.

CRMLA

California Residential Mortgage Lending Act, Division 20 of the Financial Code, administered by DFPI to license residential mortgage lenders and servicers.

CRMLA covered property

Residential mortgage loans secured by real property improved with one to four dwelling units, typically for personal, family, or household purposes.

CRMLA annual reporting

CRMLA licensees must file required annual reports and maintain books and records subject to DFPI examination and review.

CRMLA exemptions

Banks, credit unions, and certain government or regulated entities are exempt from CRMLA licensing when acting under other authority.

CRMLA change notice

Licensees must notify DFPI of required changes in ownership, control, or key personnel and obtain approvals when statute or regulation requires.

CFLL

California Financing Law, Division 9 of the Financial Code, administered by DFPI to license finance lenders and brokers making covered consumer loans.

CFL license scope

A finance lender license authorizes making covered consumer loans; a broker license authorizes negotiating loans for others, subject to exemptions.

CFL surety bond

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

CFL recordkeeping

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

CFL real estate broker exemption

California real estate brokers licensed by DRE may be exempt from CFL when making loans secured by real property under Real Estate Law.

DRE MLO endorsement

A mortgage loan originator license endorsement issued by DRE to a real estate broker or salesperson who originates residential mortgage loans.

DRE MLO exam

Applicants for a DRE MLO license must pass the SAFE MLO test and complete NMLS-approved pre-licensure education before licensing.

MLDS

Mortgage Loan Disclosure Statement required in California for DRE-licensed brokers; it discloses loan terms, costs, and broker compensation to the borrower.

DRE record retention

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

DRE license renewal

A DRE real estate license renews every four years, while the MLO endorsement renews annually through NMLS with continuing education.

DRE disciplinary authority

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

Loan Estimate timing

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

Closing Disclosure timing

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

APR

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

Discount point

A discount point is a fee equal to one percent of the loan amount, paid upfront to obtain a lower interest rate.

California usury limit

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

Dual tracking prohibition

California Homeowner Bill of Rights bars servicers from recording a notice of default or continuing foreclosure while a complete loan modification application is pending.

Single point of contact

HBOR requires servicers to provide a single point of contact to borrowers in foreclosure who request assistance with loss mitigation.

Notice of Default

First recorded nonjudicial foreclosure document in California; it states the default and begins the reinstatement period for the borrower.

Reinstatement period

Under HBOR, a borrower may reinstate the loan by paying past-due amounts until five business days before a scheduled foreclosure sale.

Foreclosure consultant fees

California restricts foreclosure consultants from collecting upfront fees before performing services and allows certain contracts to be voided.