CA MLO key terms

The online system of record that states use to process mortgage license applications, track education and testing, and maintain public license records. California MLOs and company licensees are managed through it.

California's financial regulator, formerly the Department of Business Oversight, which licenses and examines mortgage lenders and servicers under the CRMLA and consumer lenders under the CFLL.

The federal Secure and Fair Enforcement for Mortgage Licensing Act of 2008, which requires individual mortgage loan originators to be state-licensed, meet minimum education and testing standards, and be registered in NMLS.

The identifying number NMLS assigns to a licensed mortgage loan originator. The MLO must provide it to consumers on loan documents, applications, and solicitations.

The California authorization an individual must hold to originate residential mortgage loans. It is issued either by the DFPI or the DRE and is tied to a sponsoring licensed employer.

The required employment relationship between a licensed MLO and a licensed lender or broker. Without an approved sponsor the MLO's license cannot be active and origination is prohibited.

The twenty hours of NMLS-approved coursework an applicant must complete before licensure, covering federal law, ethics, and nontraditional mortgage products, plus any California-specific requirements.

The eight hours of NMLS-approved annual coursework a licensed MLO must complete to renew, including required hours in federal law, ethics, and nontraditional mortgage lending.

A bond a licensed mortgage lender or broker must post with the state as a condition of licensure, giving consumers a fund to claim against if the licensee violates the law.

Division 20 of the California Financial Code, which requires a DFPI license to make or service residential mortgage loans and sets net worth, bonding, and servicing conduct standards.

The CRMLA license that authorizes a company to originate residential mortgage loans in California, and that must sponsor the individual MLOs who originate on its behalf.

An entity that collects payments, administers escrow accounts, and handles loss mitigation for a mortgage loan. Servicing California residential loans requires CRMLA licensure.

Division 9 of the California Financial Code, which licenses lenders and brokers that make or arrange consumer loans, including certain loans secured by real property, with limits on rates and fees.

A DFPI-issued license under the CFLL, held either as a finance lender that funds consumer loans or as a broker that arranges them for a licensed lender.

A loan for personal, family, or household purposes, as opposed to a business loan. Consumer loans are subject to California financing law disclosure and rate rules.

The California agency that licenses real estate brokers and salespersons and issues MLO license endorsements to brokers who originate residential mortgage loans.

The California license required to negotiate mortgage loans for compensation and the prerequisite for receiving a DRE mortgage loan originator license endorsement.

The California DRE form a broker must give a borrower that discloses the loan terms, broker fees, and costs of a brokered mortgage loan before the borrower becomes obligated.

The cost of credit expressed as a yearly rate, computed under Regulation Z to include the finance charge so borrowers can compare loan offers on a common basis.

The total dollar amount of credit costs a borrower pays, including interest and certain fees such as origination and mortgage broker charges, disclosed under federal truth-in-lending rules.

The standardized three-page federal disclosure a lender must deliver within three business days after receiving an application, showing estimated terms, payments, and closing costs.

The federal form showing final loan terms and costs, which the borrower must receive at least three business days before consummation of most residential mortgage loans.

The TILA-RESPA Integrated Disclosure rules that replaced the early and final truth-in-lending and good faith estimate forms with the Loan Estimate and Closing Disclosure.

A charge imposed when a borrower pays a mortgage off early. California law restricts or bars such charges on many residential mortgage loans, especially owner-occupied home loans.

A large lump-sum amount due at the end of a loan because the payments did not fully amortize the balance. California requires special disclosure of balloon features.

A payment structure in which the borrower's payment is less than the interest due, so unpaid interest is added to the balance and the loan grows over time.

An account a lender or servicer holds to collect and pay property taxes and hazard insurance on the borrower's behalf, subject to federal and state escrow accounting rules.

The federal requirement that a creditor make a reasonable, good-faith determination and verify documentation that the borrower can repay the mortgage, with limited exemptions such as certain non-profit lenders.

A loan that exceeds federal thresholds for points and fees, APR, or prepayment penalties, triggering extra borrower protections and restrictions on terms and practices.

California's standard three-party security instrument for real property loans, in which a trustee holds title until the debt is repaid and may conduct a nonjudicial foreclosure if it is not.

The document recorded by a trustee to begin a nonjudicial foreclosure. California requires borrower contact and specific notices before it may be recorded.

The recorded notice setting the date of a foreclosure sale. It may be recorded only after the statutory waiting period following the notice of default, and the sale must be properly noticed.

The practice of moving a foreclosure forward while a complete first-lien loan modification application is pending. California's Homeowner Bill of Rights prohibits it for owner-occupied homes.

California's foreclosure protection statutes requiring a single point of contact, written denial reasons, appeal rights, and a ban on dual tracking for first liens on owner-occupied homes.

A borrower's right to cure a default by paying the past-due amounts and costs, which under California law may be exercised until shortly before the scheduled foreclosure sale.

California's debt collection statute, which covers mortgage servicers collecting consumer debts and bars harassment, false statements, and unfair collection tactics.

California law enforced by the DFPI that prohibits unfair, deceptive, or abusive acts and practices by financial services providers, including mortgage originators and servicers.

A California anti-predatory lending category for certain high-cost home loans, imposing restrictions on points, fees, prepayment penalties, and balloon payments.

An unearned fee or thing of value given in exchange for referring mortgage settlement business. Both federal and California law prohibit these arrangements.