California has two agencies that offer mortgage and real estate related license: the Bureau of Real Estate (BRE) and the Department of Business Oversight.
Activities Requiring a Mortgage License in CA
Any sale, exchange, negotiation, or solicitation of mortgage loans will require a license in California. A license would be required if, for compensation, a person performs any of the following mortgage related activities:
- Solicit mortgage loan on behalf of the borrower.
- Accept or offer to accept a mortgage loan application.
- Originate or offers to originate mortgage loans.
- Negotiate the terms and conditions of a mortgage loan.
Types of Licenses
BRE Licenses
- CA BRE Broker License: BRE Broker is a licensed professional that can engage in the business of real estate and mortgage brokering. With this license you can work independently, work with other brokers, or act as the supervising broker for a corporation. This license allows both commercial and residential mortgage activities.
- CA BRE Salesperson License: BRE Salesperson is a licensed professional who works under the supervision of a BRE licensed Broker as an agent of the Broker.
- CA BRE Corporation License: BRE Corporation is a licensed corporate entity that can engage in the business of real estate and mortgage brokering. At least one BRE broker must act as a designated officer.
Department of Business Oversight Licenses
- California Finance Lender License (CFL): A California Finance Lender is a licensed entity that can engage in the business of making consumer loans or commercial loans. A Finance Lender may only broker loans to lenders that hold a California Finance Lenders license.
- California Residential Mortgage Lending Act License (CRMLA): CA RML License lender is a licensed entity that can engage in the business of residential mortgage lending in the State of California. This license is only available to an entity that is approved as a lender or servicer from at least one federal agency, which includes VA, FHA, FmHA, Ginnie Mae, Fannie Mae, or Freddie Mac.
Summary of CA Licenses
Below is a summary of the various mortgages related licenses issued in CA.
| No | License | Issuing Agency | Scope of Activities | Purpose | Notes | Issued to |
|---|---|---|---|---|---|---|
| 1 | Salesperson | Bureau of Real Estate | Mortgage and Real Estate | For a new entrant into mortgage industry | Must work under a CA licensed broker | Individuals, Proprietorship |
| 2 | Broker | Bureau of Real Estate | Mortgage and Real Estate | For an experienced professional seeking to set up independent business | Individuals, Proprietorship | |
| 3 | Corporation | Bureau of Real Estate | Mortgage and Real Estate | For brokers desiring to operate under a Corporation structure | At least one BRE licensed Broker must act as a designated officer | Corporations |
| 4 | Branch | Bureau of Real Estate | Same as the head office | For branch expansion | Must have CA address | Brokers and Corporations |
| 5 | RML License | Department of Business Oversight | Mortgage | For corporations performing mortgage activities | Must be approved by at least one federal agency | Corporations |
| 6 | CFL License | Department of Business Oversight | Mortgage | For corporations performing mortgage activities | Can only broker loans to lenders with CFL license. License does not allow direct originations | Individuals, Proprietorship, Partnerships, LLCs, or Corporations |
External Links
Updated: Sep 14, 2013
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