Mortgage Loan Originator License: Requirements

Pre-requisites for license applications

• All applicants must apply for a license through the NMLS by filing a Form MU4 and receiving a sponsorship by a Department of Corporations licensed company holding a valid unique identifier with NMLS. All DRE real estate licensees (salesperson or broker) who conduct residential MLO activities must apply for and obtain a "license endorsement". CLICK HERE for complete details.
• Background checks including FBI fingerprint checks and civil and administrative records checks.
• Authorization to obtain an independent credit report obtained by NMLS from a consumer credit reporting agency.
• Demonstrate financial responsibility, character and general fitness such as to command the confidence of the community and to warrant a determination that the mortgage loan originator will operate honestly, fairly and efficiently.
• 20 hours of pre-licensing education including 3 hours of federal law and regulations, 3 hours of ethics and 2 hours of training related to nontraditional mortgage products. Pre-license education must be courses which have been approved by NMLS.
• A passing score on the national and California components of the SAFE Act Mortgage Loan Originator tests. The written tests must be taken through test providers approved by NMLS.
• Coverage by a surety bond provided by the mortgage loan originator's employer.

The following conditions would preclude an applicant from obtaining a license as a mortgage loan originator or from annually renewing a license:

• An applicant has had a mortgage loan originator license revoked in any governmental jurisdiction unless there was a subsequent formal vacation of the revocation.
• The applicant has been convicted of, or pled guilty or nolo contendere to a felony in a domestic, foreign or military court during the 7 year period preceding the date of the application; or at any time preceding the date of application if such felony involved an act of fraud, dishonesty or a breach of trust or money laundering.
• A showing that the individual is not financially responsible by showing a disregard in the management of his or her own financial condition

Pre-license and continuing education requirements

Applicants must complete 20 hours of pre-license education. The courses must be NMLS approved and include 20 hours of pre-licensing education including 3 hours of federal law and regulations, 3 hours of ethics and 2 hours of training related to nontraditional mortgage products.

Mortgage loan originator applicants may begin taking their pre-license education courses at any time. NMLS provides pre-license education course information to individuals who create their NMLS record and obtain their unique identifier through the system. Select course providers through NMLS, complete the training and have the course provider report the completion directly to NMLS.

Mortgage loan originator licensees must complete 8 hours of continuing education each year in order to renew their licenses during the November 1 through December 31 renewal period. The continuing education must include 3 hours of federal law and regulations, 3 hours of ethics and 2 hours of training related to nontraditional mortgage products. Pre-license education completed after January 1, 2010 which meets the continuing education requirements will be accepted as continuing education for renewing the license for 2011.

Federal and State Tests

Applicants must receive a passing score on both a national and California test. The national test is currently available and may be taken anytime. The California test will be available February 22, 2010. Enrollment opens for the California test on January 22, 2010. Test information will be available to mortgage loan originator applicants who create their NMLS record and obtain a unique identifier through the NMLS system. Applicants must schedule the tests through the NMLS website at www.nationwidelicensingsystem.org