Mortgage Loan Originator License: Overview

Federal law established by the Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (SAFE Act) now states that any individual who, for compensation or gain, takes a residential mortgage loan application or offers or negotiates terms of a residential mortgage loan application, must be licensed or registered as a Mortgage Loan Originator (MLO). A key part of the law is the requirement for licensing of Mortgage Loan Originators through the Nationwide Mortgage Licensing System (NMLS). This new law also applies to:

1) Individuals licensed under the California Department of Real Estate (salesperson or broker).
2) Individuals licensed under the Department of Corporations (CFL or CRMLA).

NOTE: Independent loan processors/underwriters must also comply with SAFE Act licensing requirements.

Real Estate Licensees Under CA-DRE
Any individual who performs mortgage loan origination activities under the authority of a real estate license issued by the California Department of Real Estate may not continue to perform those activities on or after January 1, 2011 without obtaining a Mortgage Loan Originator (MLO) "License Endorsement" issued for their real estate license. Applicants for a License Endorsement must complete a 20 hour pre-license education requirement and successfully complete the SAFE MLO state examinations (both national and CA state components).

NOTE: A real estate license is needed in order to qualify for a MLO License Endorsement through CA-DRE. Specific state approved courses will continue to be required to obtain a real estate license.

Have Questions?
We encourage you to contact one of our friendly Customer Service Representatives at 1-800-672-4665 with any questions.