California Residential Mortgage Lending Act License

Requirements

1. Choose the regime first

   CRMLA, CFL and a Department of Real Estate licence are alternatives. § 50002(c)(10) exempts a CFL licensee from CRMLA "when acting under the authority of that license"; § 50002(c)(4) makes CRMLA residential-only. Cal. Fin. Code § 50002(c)(10)

2. Federal agency approval

   FHA, VA, Fannie Mae, Freddie Mac, Ginnie Mae or Farmers Home Administration approval preconditions both lender and servicer authority, enforced at application. An independent contractor doing only processing and underwriting is exempt. Cal. Fin. Code § 50003(m)(1)(A)

3. Tangible net worth

   $250,000 tangible net worth, continuously maintained rather than tested once at application; the commissioner may require more, capped at the FHA’s approved-lender standard. Cal. Fin. Code § 50201

4. Two bonds, not one

   A surety bond sized to volume: $50,000 up to $50m of aggregate loan amount, $100,000 to $500m, $200,000 above. Separately a fidelity bond covering employee dishonesty, uploaded in full, principal named exactly as the Secretary of State has it. Cal. Fin. Code § 50000 et seq.

5. Audited financials at application

   A CPA opinion on audited financial statements, filed with the application; the recurring audited filing appears under Renewal, with its deadline. DFPI says to report data for California loans only. Cal. Fin. Code § 50307

6. Seven signed policy statements

   Each on letterhead, signed by an officer: per diem interest, trust accounting, the California Homeowners Bill of Rights, complaint handling, sub-servicer oversight, onboarding transferred loans, and an AML policy the compliance person cannot test themselves. Cal. Fin. Code § 50204(o)

7. Control persons and fingerprints

   Control persons at 10 percent direct or indirect, plus officers, directors, general partners, managers, members and trustees. Anyone indirectly owning 25 percent or more files in their own right, fingerprints required whatever their residence. Cal. Fin. Code § 50000 et seq.

8. Qualifying individual

   One designated individual supervises and periodically reviews branch managers and inspects each office to confirm written procedures are followed. With no branches, that person supervises the originators directly. Cal. Fin. Code § 50000 et seq.

9. Corporate paperwork, dated tightly

   Good standing from the state of incorporation and California, dated within 60 days; a county-sealed fictitious business name statement for each California name; the limited offering exemption notice. Mailed originals must reach DFPI within 5 business days. Cal. Corp. Code § 25102

Renewal

Expiry

Neither company licence expires: § 50123(a) says a residential mortgage lender licence "shall remain in effect until suspended, surrendered, or revoked", and § 22700(a) says the same of finance lender, broker and program administrator licences, "shall remain in effect until they are surrendered, revoked, or suspended". The distinction is deliberate: § 22700(b), the next subsection, makes MLO licences renewable annually. Cal. Fin. Code § 22700

Annual reporting

CRMLA is due 1 March, under oath, in the commissioner’s prescribed form, with audited financials within 105 days of fiscal year end. CFL is due 15 March, unaudited and free to file; a report missing its signed verification page counts as never filed, and failing to file carries penalties up to $25,000 in aggregate. Cal. Fin. Code § 50307

Holding it

Record retention

DFPI asks for the record keeping plan and software used, described in the application, rather than a flat retention period in the Act’s licensing sections. Cal. Fin. Code § 50000 et seq.

Examinations

Billed at DFPI’s estimated average hourly cost; neither the statute nor the fee index attaches a figure. DFPI-ADM 510, Index of Fees, Fines and Penalties (Rev. 10-25)

Surrender

One of three events § 50123(a) names as ending the licence, the only voluntary one; the annual report duty runs while the licence is in effect, so surrendering after 1 March does not retire a report already due. Cal. Fin. Code § 50123(a)

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