Mortgage Loan Originators – FAQs

NMLS must indicate you are compliant with this requirement.

You may take the tests at any time, either together or at separate times. You are not required to complete your pre-licensing education requirements prior to taking either test. An individual who fails a test may retake the test up to two consecutive times with at least 30 days passing between each retesting. An applicant who fails three consecutive tests must wait at least 180 days before retesting. For more information about retesting, please visit the NMLS Website.

You should allow at least 5 days for exam results to be posted in NMLS. Additional information about testing is available on the NMLS Website.

  1. MLO Application Fee $300
  2. NMLS administrative fee $30
  3. NMLS sponsorship fee $30
  4. Credit report fee, if a credit report has not been authorized through NMLS in the past 30 days
  5. Fingerprint fee $39, if you authorize a criminal background check at time of application

Note: ALL FEES ARE PAID THROUGH NMLS AND ARE NOT REFUNDABLE.

  1. HOW DO I AMEND A MORTGAGE LOAN ORIGINATOR LICENSE? If the Mortgage Loan Originator’s legal name is being changed, this amendment must be filed through the NMLS with supporting documentation provided to the Department of Financial Protection and Innovation.All other amendments must be filed through the NMLS. There are no fees for amendments to the Mortgage Loan Originator license.See MLO Amendment Checklist for full details.
  2. HOW DO I RENEW A MORTGAGE LOAN ORIGINATOR LICENSE? The MLO license must be renewed each year between November 1 and December 31. MLOs must continue to meet all criminal, financial and background requirements at all times. FBI checks and credit checks may be required at renewal.All licensees must submit a renewal request through NMLS by December 31. You may continue to originate loans while the Department processes your renewal request. If you do not submit a renewal request by December 31, your license will expire on January 1 and you will not be authorized to originate loans. You are permitted to request reinstatement of your license through the last day of February. After that, you must apply for a new license. In addition to meeting all licensing requirements you must complete 8 hours of continuing education for the last year in which you held a license before you will be issued another license. Educational Requirements MLOs must complete at least 8 hours of continuing education (CE) each year in order to renew the license, which must include:

All education must be received from NMLS approved course providers.

You should review your NMLS record. If pre-licensing education (PE) was before 2011, continuing education (CE) is required in 2012 to renew the license for 2013. If PE was completed in 2012, no additional CE is required in 2012.

Annual Renewal Fee

All licensees must submit a renewal request through NMLS by December 31. You may continue to originate loans while the Department processes your renewal request. If you do not submit a renewal request by December 31 your license will expire on January 1 and you will not be authorized to originate loans. You are permitted to request reinstatement of your license through the last day of February. After that you must apply for a new license. In addition to meeting all licensing requirements you must complete 8 hours of continuing education for the last year in which you held a license before you will be issued another license.

MLO licensees must pay all fees to NMLS in order to request renewal. Fees may be paid by credit card or ACH transfer. Fees may be paid by the MLO or his/her employer/sponsor at the time of request.

  1. MLO annual renewal fee $300; MLO reinstatement fee (late renewal) $100
  2. NMLS annual renewal fee $30

Note: ALL FEES ARE PAID THROUGH NMLS AND ARE NOT REFUNDABLE.

Do I Need a License if…

  1. I HAVE A DEPARTMENT OF REAL ESATE (DRE) MORTGAGE LOAN ORIGINATOR (MLO) LICENSE ENDORSEMENT, DO I NEED AN MLO LICENSE ISSUED BY THE Department of Financial Protection and Innovation TO WORK FOR A CRMLA OR CFL COMPANY? An MLO with an ACTIVE DRE MLO license endorsement does not need a DFPI MLO license to work for a CRMLA or CFL company. However, an MLO with an INACTIVE DRE MLO license endorsement must obtain an MLO license from the DFPI to work for a CRMLA or CFL company. For currently licensed real estate salespersons, holding an ACTIVE DRE MLO license endorsement means that you are employed by (1) a properly licensed real estate broker which holds an active MLO license endorsement as a sole proprietor, or (2) a licensed real estate corporation which holds an active MLO license endorsement. As a salesperson, once your employment with a properly licensed MLO real estate broker is terminated, your MLO status will be changed from active to inactive and you will have to obtain an MLO license from the DFPI in order to continue to work for a CRMLA or CFL company. For currently licensed real estate brokers, holding an ACTIVE DRE MLO license endorsement means that (1) you hold an active MLO license endorsement as a sole proprietor, or (2) you are employed as a broker associate by a properly licensed real estate broker which holds an active MLO license endorsement as a sole proprietor, or by a licensed real estate corporation which holds an active MLO license endorsement. As a broker associate, once your employment with a properly licensed MLO real estate broker is terminated, your MLO status will be changed from active to inactive and you will have to obtain an MLO license from the DFPI in order to continue to work for a CRMLA or CFL company. The California Financial Code (CA Fin. Code) allows for certain exemptions from licensing by the Department of Financial Protection and Innovation (DFPI) as a Mortgage Loan Originator (MLO). These exemptions can be found in CA Fin. Code Section 22100(b) for the California Finance Law (CFL) and I AM A REGISTERED MORTGAGE LOAN ORIGINATOR, DO I NEED AN MLO LICENSE BY THE DFPI TO WORK FOR A CRMLA OR CFL COMPANY? An MLO with an ACTIVE registration in the NMLS Federal Registry does not need a DFPI MLO license to work for a CRMLA or CFL company. However, an MLO with an INACTIVE registration must obtain an MLO license from the DFPI to work for a CRMLA or CFL company.A registered mortgage loan originator is an individual who meets all of the following criteria:
  2. ARE ACCOUNT EXECUTIVES EMPLOYED BY WHOLESALE LENDERS REQUIRED TO OBTAIN AN MLO LICENSE? Whether an individual is considered to be an MLO is not based on the title or position of the person, but rather whether the activity of the person fits within the definition of MLO. The definition of an MLO can be found in Section 22013(a) of the CFL and Section 50003.5 of the CRMLA, which states in a pertinent part: “Mortgage loan originator” means an individual who, for compensation or gain, or in the expectation of compensation or gain, takes a residential mortgage loan application or offers or negotiates terms of a residential mortgage loan…”. Subsection (b)(7)(ii) of Appendix A of HUD’s final rule provides that offering or negotiating terms of a loan does not include offering or negotiating loan terms solely through a third-party licensed loan originator, so long as the nonlicensed individual does not represent to the public that he or she can or will perform covered activities and does not communicate with the borrower or potential borrower. For example, an individual who works solely for a lender, when the individual offers loan terms exclusively to third-party licensed loan originators and not to borrowers or potential borrowers. (Federal Register Vol. 76, No. 126, June 30, 2011) Therefore, any account executive or person who works solely for a lender that offers or negotiates loan terms solely through third-party licensed mortgage loan originators and not to borrowers or potential borrowers is not required to be licensed as a mortgage loan originator.