CA MLO study guide
CA MLO · Work through your exam, one topic at a time.
The California Mortgage Loan Originator (MLO) license is the state credential that lets you originate residential mortgage loans in California as a licensed MLO, working through a licensed mortgage company, a DFPI-licensed lender or a DRE-licensed real estate broker. It is built on the federal SAFE Act framework, so licensing runs through NMLS: pre-licensure education, a criminal background check, credit report, sponsorship by a licensed employer, and passing both a national test component with the Uniform State Content and a California state-specific component. The CA MLO study guide has 6 sections and about 2,223 words.
01California Regulatory Framework and MLO Licensing (DFPI, DRE, NMLS)
California splits mortgage oversight between two state agencies. The Department of Financial Protection and Innovation (DFPI, successor to the Department of Business Oversight) licenses mortgage lenders and servicers under the California Residential Mortgage Lending Act and finance lenders under the California Finance Lenders Law.
367 words, about 2 min02California Residential Mortgage Lending Act (CRMLA)
The CRMLA (Financial Code Division 20, beginning at Section 50000) is administered by the DFPI. It licenses companies to make, service, or make and service residential mortgage loans - loans secured by a deed of trust or mortgage on residential real property improved with one to four dwelling units.
364 words, about 2 min03California Finance Lenders Law (CFLL)
The California Finance Lenders Law (Financial Code Division 9, beginning at Section 22000) is administered by the DFPI and licenses two distinct roles: finance lenders , who make loans, and finance brokers , who arrange them for a fee. A company may hold both, but each activity requires its own authority.
371 words, about 2 min04Real Estate Law and DRE Mortgage Loan Originator Licensing
The Real Estate Law (Business and Professions Code Section 10000 et seq.) is administered by the DRE Commissioner. It licenses real estate brokers and salespersons.
370 words, about 2 min05California Mortgage Lending Practices, Loan Terms, and Disclosures
Federal Regulation Z and RESPA, enforced in California alongside state law, drive timing. The Loan Estimate goes out within three business days of application and may be revised only on a valid changed circumstance.
376 words, about 2 min06California Consumer Protection, Prohibited Conduct, and Foreclosure Rules
The HBOR (Civil Code Section 2923.5 and following) protects first-lien mortgages on owner-occupied residential property of one to four units. Before recording a Notice of Default, the servicer must make contact - in person or by telephone - at least 30 days earlier, or make a diligent effort, to assess the borrower's financial situation and discuss alternatives.
375 words, about 2 min