To conduct business as a finance lender or broker in California, you must get a license from the commissioner. If you're involved in lending or brokering residential mortgages, any mortgage loan originators you employ must also be licensed. A finance lender or broker cannot hire a loan originator whose license has expired and cannot process mortgages unless done through a licensed loan originator.

Both lenders and originators need a unique ID from the Nationwide Mortgage Licensing System. Individuals working as mortgage loan originators must have an annual license, but exceptions exist for those working with certain financial institutions, like depository institutions or those regulated by specific agencies.

This law states that anyone who wants to work as a program administrator needs to get a license from the commissioner. It also mentions that this requirement started on January 1, 2019.

If you want to apply for a license as a finance lender, broker, or program administrator, you'll need to fill out a specific application form and pay a fee. If you don't already have a license, you'll also need to provide fingerprints for a background check. The law allows companies to operate through subsidiaries, but these must also be licensed. You don't need a new application just to change the address of a licensed location, but there are other requirements for doing so. You might have to apply through the Nationwide Mortgage Licensing System and Registry, and can potentially submit information electronically if the commissioner permits it. The law also defines what electronic records and signatures mean in this context. The state encourages electronic filing methods to make the process easier.

This law outlines the process for background checks required for finance-related license candidates in California. Candidates must submit fingerprints to the Department of Justice to check for any criminal records at both state and federal levels. The DOJ forwards these fingerprints to the FBI, reviews the federal background information, and sends the results to the commissioner. The commissioner is also notified of any future arrests of the candidates. This process comes with a fee to cover the DOJ's costs, and there’s an option for fingerprints to be sent to the Nationwide Mortgage Licensing System. The law was enacted on January 1, 2019.

If you're a finance lender, broker, or program administrator in California and you want to open a branch at a new location, you must apply for a branch office license at least 10 days before starting business there. This involves sending an application and paying a fee, possibly through a national mortgage system.

You can start operating from the new location 10 days after submitting your application. The person responsible for lending activities at the new site must be approved by the commissioner, who will respond within 90 days.

If your application is denied, you have 10 days to submit a new one with a different person in charge. Businesses must use an approved name, and any change of address isn't considered a new location. This section became effective January 1, 2019.

When you apply for a license as a finance lender, broker, program administrator, or for a branch office, you must pay a $100 investigation fee and a $200 application fee. This covers costs like checking your fingerprints and criminal record. These fees are non-refundable, even if your application is denied or you decide to withdraw it. This rule has been in effect since January 1, 2019.

If you're applying for a license to be a finance lender, broker, or program administrator, you need to show financial statements proving you have at least $25,000 in net worth. Licensees must maintain this amount at all times unless specifically provided otherwise. If you're a licensed finance lender or broker working with mortgage loan originators and you make residential mortgage loans, your net worth needs to be at least $250,000. If you're arranging but not making residential mortgage loans, your net worth needs to be $50,000. The rules may be updated by the commissioner to align with the law's goals and a federal act called the SAFE Act. This section began being enforced starting January 1, 2019.

This law outlines the investigation process that the commissioner conducts when a company applies for a lending license in California. When an application is submitted, the commissioner checks the backgrounds of key individuals involved in the company, such as owners, partners, and top executives, especially if they own or control a significant share (10% or more). If the company is a corporation, trust, LLC, or association, the investigation includes principal officers like the CEO or CFO. The law also covers inspections for applications involving new business locations. If everything checks out and there are no reasons to deny the license, the commissioner will issue it. This law has been effective since January 1, 2019.

If you want to get a license to originate mortgage loans, you need to apply through the Nationwide Mortgage Licensing System and Registry using their form. You might also have to provide extra information if requested.

The law that usually applies to how the Department of Financial Protection and Innovation handles applications doesn't apply here if the application uses the national system linked to the SAFE Act.

When you apply, you need to give details about yourself, such as fingerprints for background checks and your personal history, like credit reports and any legal issues.

The commissioner can request criminal background checks from the state through the Nationwide Mortgage Licensing System. This involves sharing fingerprint images with the Department of Justice for checking any criminal records or pending charges.

The Nationwide Mortgage Licensing System can also get updates on any new arrests for the applicants. The Department of Justice charges a fee for processing these background check requests.

The law allows the commissioner to create agreements with the Nationwide Mortgage Licensing System (NMLS) to handle records and fees for mortgage professionals. It gives the commissioner the power to adjust existing rules to participate in NMLS and establish new ones if needed. The commissioner can also use NMLS to share information with governmental agencies or any other source deemed necessary. Additionally, there's a process for mortgage applicants and licensees to contest the information input by the commissioner into the NMLS.

This law section explains that when information is shared with the Nationwide Mortgage Licensing System and Registry, privacy and confidentiality protections still apply as they would under federal or state law. This means that important data about mortgages remains private, even after it is shared with this system.

The commissioner can make agreements with other agencies to manage or share this information responsibly. Such information cannot be publicly disclosed or used as evidence in private legal actions unless someone with the related privilege allows it. However, this privacy protection does not apply to mortgage loan originators' employment history and public disciplinary records, which remain accessible to the public.

This law requires the commissioner to keep the Nationwide Mortgage Licensing System and Registry updated about any rule-breaking activities, enforcement actions, or relevant happenings related to mortgage licenses, as long as this information is available to the public.

This section outlines what information must be included on a finance license in California, like the name and address of the licensee and whether they are a lender, broker, or program administrator. It also specifies what happens if a business is located outside of California. The business must make its records available to state officials and cover expenses for officials traveling out of state for inspections. If licensed loans are easily identifiable, they don't need to keep separate records for them. This rule started on January 1, 2019.

This section outlines how finance lenders, brokers, and program administrators in California must contribute to the costs of administering the finance division, which includes licensing mortgage loan originators. Each licensee's fee is based on their share of the total income of all licensees. Licensees are notified of their fees by September 30th and must pay by October 31st, or they will incur a 1% monthly penalty. The minimum fee per location is $250 per year.

If a licensee doesn't pay by the deadline, their ability to operate can be suspended or revoked until they pay what's owed. Licensees can request a hearing to contest such orders but must do so within 30 days. The commissioner will establish rules for timelines, fees, and license changes, and may require payments through a national system.

This law has been in effect since January 1, 2019.

This law allows the commissioner to require licensed financial professionals to update their information when the details they originally submitted change. This can include the timing and content of those updates. Additionally, the commissioner can mandate that these updates be made through the Nationwide Mortgage Licensing System and Registry.

This law allows the commissioner to deny a finance lender, broker, or program administrator license if certain criteria are met. These include making false statements in the application, recent convictions or dishonest acts by applicants or key people involved, violations of relevant laws, or employing unlicensed mortgage loan originators. If applicants don't fix issues noted by the commissioner within 90 days, their application is considered withdrawn. The commissioner must either grant the license or state issues within 60 days of application completion. This law has been in effect since January 1, 2019.

This law states that to get a mortgage loan originator license, the applicant must meet several criteria. First, they should not have previously had such a license revoked, unless that revocation was formally overturned. Second, they should not have been convicted of a felony related to fraud, dishonesty, breach of trust, or money laundering within the last seven years, unless the conviction was pardoned or expunged. The commission can still evaluate such cases based on their facts. The applicant must also demonstrate responsibility, good character, and reliability to gain community trust. Additionally, they must have completed required education, passed a test, and be employed by a licensed finance lender or broker. The commissioner must follow proper procedures before denying any license.

If you want to become a mortgage loan originator in California, you must complete 20 hours of specific prelicensing education. This includes classes on federal law, ethics, lending standards for nontraditional mortgages, and relevant California laws. These courses need approval from the Nationwide Mortgage Licensing System and Registry (NMLS), which also approves the course providers. Education can be done in various formats, like online or in-person. Courses from other states that meet NMLS standards can count toward this requirement. If you were previously licensed and want to be licensed again, you need to have completed your continuing education for the last year you held the license.

If you want to get a mortgage loan originator license, you need to pass a written test approved by the Nationwide Mortgage Licensing System and Registry. The test checks your understanding of ethics and laws about mortgages.

The areas covered include federal and state regulations, fraud prevention, consumer protection, the nontraditional mortgage market, and fair lending. You have to score at least 75% to pass. If you don't pass, you can try again up to three times, but must wait 30 days between each attempt. After three failures, you have to wait six months before trying again.

If you haven't held a valid license for five years, you'll need to retake the test, unless you've been a registered mortgage loan originator during that time. You can take the test at your employer's location or affiliates.

This law requires mortgage loan originators in California to meet specific criteria to renew their licenses each year by December 31. To renew, they must fulfill the standards for initial licensing, complete their annual continuing education, and pay any necessary renewal fees. If these requirements are not met, the license will expire at the end of the year, but there may be procedures for reinstatement.

If you're a licensed mortgage loan originator in California, you need to complete eight hours of continuing education every year. This education includes training on federal law, ethics (such as fraud and consumer protection), nontraditional mortgage products, and California-specific laws. The courses must be approved by the Nationwide Mortgage Licensing System. You can't repeat the same course in consecutive years to fulfill your requirements. Instructors can earn extra credit for teaching courses, and education completed in other states may count towards California's requirements. If you lose your license, you still need to finish the previous year's courses before renewal. If you miss any education, there's a way to correct it as per specific rules.

This section requires that mortgage loan originators in California be licensed and registered using the Nationwide Mortgage Licensing System and Registry. The commissioner has the authority to enforce this and can create rules necessary to ensure compliance. This includes collecting background information such as criminal history, civil records, credit history, and any other necessary data. Fees must be paid for applying or renewing these licenses, and renewal or reporting dates can be adjusted as needed. The commissioner also sets requirements for changing or giving up a license, and oversees other necessary activities related to the licensing system.

If someone is denied a license, the process for handling this will follow specific government procedures outlined in another part of the law. Additionally, the commissioner has the authority to exercise all the powers specified in those procedures.

Any money collected related to this division goes into the State Treasury, specifically credited to the State Corporations Fund. This fund is then used to manage and operate the tasks under this division.

If you are licensed to conduct certain financial activities in California, you need to have a surety bond of at least $25,000. This bond acts as a financial safety net and is paid to the state's commissioner if you break rules or cause harm to consumers. Even if you operate in multiple places, you still only need one bond.

If your bond is used to cover any claims, you'll need to get a new one quickly, or you risk losing your license. The commissioner can ask for a bigger bond if you deal with residential mortgage loans and have mortgage loan originators working for you.