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CA RML License Application

Application Process

CA RML License Application

The CRMLA License is issued by the California Department of Business Oversight (DBO). The license application is submitted electronically through NMLS. The Department of Business Oversight will review the NMLS submission, along with the documents that were uploaded and mailed to determine if a license can be issued.

Step 1: Create an application in NMLS

Create an account and prepare the application in NMLS system.

For Sole Proprietors

The NMLS system treats sole proprietorships as companies and requires the completion of form MU1. Additionally, the sole proprietor is considered a control person and is required to complete form MU2.

Source :www.MortgagesAnalyzed.com

Step 2: Prepare and Upload Documents

A number of supporting documents need to be uploaded in the NMLS system. These may include:

  1. Fictitious Business Name Statement
  2. Explanations to any "Yes" in disclosure questions
  3. Audited financial statements
  4. Business plan
  5. Certificate of Good Standing issued by California Secretary of State dated not more than 60 days prior to date of license application. For out-of-state entities, you are required to provide Certificate of Good Standing from the State where your entity is incorporated.
  6. Fidelity Bond
  7. Formation Documents
  8. Management Chart
  9. Organizational Chart
  10. Surety Bond
Source :www.MortgagesAnalyzed.com

Step 3: Pay License Application Fees

Make the payment for the application fee to NMLS through credit card or ACH transfer. The total application fee is $1,100.00 including the NMLS processing fee. The fees may be higher based on the number of people investigated for background checks.

Step 4: Fingerprinting

The DBO will perform a background check for all stockholders, directors, and principal officers. The background check verifies the criminal history for activities such as fraud, embezzlement, fraudulent conversion, or misappropriation of property. The check is performed by review of information maintained by Department of Justice and civil courts.

To enable background search you need to complete the Request for Live Scan Service Form (BCII 8016) . The fingerprinting is performed through a live scan service provider. The provider completes the last section of the form and keeps the original form while returning the other two copies. The second copy is sent to DBO and the third copy is for your records. A separate fee is charged by the service provider for the fingerprinting.

If you do not have access to a fingerprinting service, then you can fill out form BCII 9004 to request exemption from electronic fingerprinting. You are still required to provide fingerprints using the paper form.

You need to complete live scan for the following individuals ("control persons"):

  1. The applicant, if an individual or proprietorship
  2. All general partners, officers, and directors
  3. Persons owning or controlling, directly or indirectly, 10% or more of the outstanding equity interests of your entity
  4. Key management and supervisory personal having direct responsibility for the supervision of your entity’s mortgage lending and/or servicing activity.

Apart from Live Scan form you need to complete the Notice to Officers form for each control person.

Be aware that the results from the fingerprinting process may take some time and DBO does not issue licenses till it receives the results. Therefore, it is recommended to complete fingerprinting early in the application process.

The list of live scan service providers can be obtained by visiting the California Department of Justice website or by calling the Sacramento Office of the Department of Real Estate at 877-373-4542.

Source :www.MortgagesAnalyzed.com

Step 5: Mail Supporting documents

Any document that needs to be sent to the Department of Business Oversight (marked as attached in NMLS New Application Checklist) must be mailed within 5 days from the date of submitting the application to the NMLS. The documents that may need to be mailed are:

  1. NMLS DBO New Application Checklist
  2. Fictitious Business Name Statement
  3. Certificate of Good Standing
  4. Surety Bond
  5. Surety Bond Form (MBL 50205(2/01))
  6. For each control person, a Notice to Officers Form (1950.122.2 (2/01))
  7. For each control person, a Request for Live Scan or Request for Exemption from Mandatory Electronic Fingerprint Submission Requirement
  8. Fingerprint Cards, if not using Live Scan
  9. Customer Authorization for Disclosure of Financial Records Form (MBL 1950.122B (Rev. 01/01))
  10. Explanation of Other Business, if applicable.
  11. Evidence of agency approval from FHA, VA, FmHA, Fannie Mae, Freddie Mac, or Ginnie Mae

The address to mail the application is Department of Business Oversight, NMLS Licensing Unit, 320 West 4th Street, Suite 750, Los Angeles, CA 90013. This address accepts mail sent though US Postal mail or courier service (UPS/Fedex).

Source :www.MortgagesAnalyzed.com

Step 6: Application Review

The DBO will receive your license application through NMLS. The DBO will review the information in NMLS and the supporting documents that were submitted. During this stage the DBO may use the NMLS system to contact you. You should be prepared to respond to their questions.

Step 7: Receive the License

If the DBO determines that you meet all the requirements then you will be issued the license. The license approval will be communicated through NMLS.

Source :www.MortgagesAnalyzed.com

Updated: Sep 14, 2013

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DBO will review the NMLS submission, along with the documents to determine if a license can be issued
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