How to Get an NMLS Mortgage License in California

There are two separate licensing divisions in California: The California Department of Financial Protection and Innovation (CA-DFPI), and The California Department of Real Estate (CA-DRE). Mortgage Educators & Compliance provides course bundles that satisfy either NMLS license in California.

Some companies operate under the California Department of Real Estate (DRE), others under the California Department of Financial Protection and Innovation (DFPI). Your required mortgage education courses will depend on the licensing division your employer operates within. Contact one of our licensing specialists for assistance selecting the appropriate pre-licensing courses shown below.

If you are unsure which agency you will be licensed under, please contact your employer, as you must be licensed under the same agency. If you don’t have a sponsor yet, use the following to determine which agency to select:

If you hold an active CA real-estate license and are looking to operate under both this and your new mortgage loan originator license, then you will select the CA-DRE.

If you don’t have a CA real-estate license and aren’t looking to obtain one and are only planning to operate under a mortgage loan originator license, then select the CA-DFPI.

While both licenses will allow you to become a MLO, there are pros and cons to getting either license.

Anyone looking to work for a company that is licensed through the CA-DFPI, will have to license through the CA-DFPI as well. Generally speaking, a CA-DFPI license:

• Is easier to obtain than a CA-DRE license.

• Will only allow you to work for companies licensed with the DFPI.

• Will allow you to deal exclusively with mortgages that either fall under the California Finance Lenders Law (CFLL) or the California Residential Mortgage Lenders Act

If you're looking to work for a company that is licensed through the CA-DRE, you will be required to license through the CA-DRE as well. A DRE license:

• Is more difficult to obtain.

• Requires you to maintain a real estate license

• Requires you to complete additional, seperate real estate education.

• Gives you the opportunity to work with any mortgage company licensed through the DRE

Mortgage loan originators and mortgage brokers are commonly confused terms. As such, many people who are searching for a California broker license are actually looking for a loan originator or loan officer license. So what’s the difference? Generally speaking, a mortgage broker is a company that employs a team of loan officers. Loan officers originate mortgage loans for new home buyers. Therefore, the correct license for a loan officer in California would be one of the options listed above, depending on which division your employer works under.

As the housing market continues to grow, so too does the demand for loan officers who are both qualified and ethical in all of their dealings. The requirements to gain a California mortgage license are both robust and rigorous.

Under the Secure and Fair Enforcement for Mortgage Licensing Act of 2008, all those who are looking to obtain a loan office license in California or are looking for a California mortgage license renewal must complete extensive educational requirements.

Keep in mind that New Mortgage License information doesn't count towards your CE credits. Don't retake any 20 hour new license educatino course unless you are specifically directed to by a state regulator.

Our NMLS online course will not only help you meet any educational requirements you need on your path to becoming an MLO, it also includes helpful test prep material that will prepare you to pass the national test.

This course meets the required 20 hours (18 hours CA-DFPI course & 2 hour DFPI Elective) of pre-license education. Each subject is broken down into 5 minute videos accompanied by various quizzes and activities.

The instructor for our course is David Luna, who has over 35 years of experience in the mortgage industry and has worked for Fannie Mae, Freddie Mac, and several large banks.

Topics included in our 20 hour course:

• Becoming an MLO

• Learning the Products and Programs

• Initial Application Process

• Processing and Underwriting

• Closing and Funding

• Mortgage Ethics

The NMLS will charge these fees. Note that there are no refunds.

After your obtain your CA-DFPI license, you will be required to complete 8 hours of Continuing Education each year, which includes:

After your obtain your CA-DRE license, you will be required to complete 8 hours of NMLS approved Continuing Education each year, which includes:

You’ll need to take into account the “successive years” rule, which prohibits you from taking the same courses for two years in a row. Mortgage Educators changes its continuing education to ensure that you won’t have any issues with this rule.

**The deadline to compete CE in California is December 31st. MLO's with the CA-DRE & CA-DFPI are actually prevented from applying for license renewal until they have completed their CE.

Mortgage Educators and Compliance is here to answer any additional questions you may have regarding your Alabama mortgage license. For additional questions, feel free to call us at (801) 676-2520 or email us at [email protected].