Residential Mortgage Lender (RML) license is issued by the California Department of Business Oversight under California Residential Mortgage Lender Law (CRMLA) allowing a licensed entity to engage in the business of residential mortgage lending in the State of California. The license is also known as California Residential Mortgage Lenders Law (CRMLA) License.
CRMLA license is required by any entity that is engaged in the business of conducting residential mortgage brokering, banking, or servicing in the state of California. In addition to RML license, you will be required to complete the NMLS registration and licensing requirements to originate mortgage loans.
A key requirement for obtaining RML license is for you to be approved as a lender or servicer by any of the following: FHA, VA, FmHA, Fannie Mae, Freddie Mac, or Ginnie Mae. If you do not have approval from any one of these entities and you intend to engage in residential mortgages then you many want to obtain the CFL license or a license issued by Bureau of Real Estate (BRE).
The license can be obtained by any form of organization. It can be a proprietorship, corporation, partnership, limited liability company, association, trust, joint venture, unincorporated organization, joint stock company, government, or political subdivisions of government, or and any other entity.
If you are licensed under CA BRE as a broker or corporation or have a CFL license then you are not required to obtain RML license for conducting residential mortgage license. BRE and CFL licensees are considered as an exemption under the CRMLA. See licensing exemptions section below.
The following entities are exempt from licensing:
In addition to eligibility requirements, you need to keep the following in mind when applying for RML License.
Updated: Sep 14, 2013