California is unique, as there are two different ways to file a Mortgage Broker license. Each method has its own rules and regulations. The first way to apply for a license is with The California Department of Real Estate. The second is under the California Department of Corporations, from the California Finance Lenders Law, which requires a $25,000 surety bond.
Current Market: California’s Finance Lender/Broker bond is easily obtainable. Any agency that is licensed in California should be able to place the bond with ease. An applicant can obtain a quote online using the Online Instant Approval Program.
Bond Amount:The $25,000 bond requirement is on the low end of the scale of state mortgage broker bond requirements. Due to the small size, the amount of the bond should not effect whether the applicant qualifies or not.
Bond Form: The bond form has language agreeable to most bonding companies. The bond language will not cause problems with obtaining an approval. If an applicant does not qualify for the California surety bond, they will not qualify for a bond in any state.
Additional State Requirements:
California Department of Real Estate licenses allow the licensee to broker business with banks, credit unions, savings and loans, and thrift loans. An individual or company may apply for this type of license. However, the license is not transferable upon issuance. The California mortgage broker license and real estate broker license are one in the same. This means the licensee can list the real estate and originate the loans for it as well. Brokers licensed in other states still must obtain a California Real Estate Broker License in order to broker loans in California. The licensee must be 18 years of age, and show proof of U.S. citizenship or of alien status. An examination of the real estate and mortgage broker industry is required. There is a $50 to take the test. The applicant must complete two college statutory courses prior to taking the examination. The state also requires 45 hours of continuing education after obtaining the license.
Department of Corporations licenses restrict brokers to write loans with California Finance Lenders Law licensed lenders. This type of license is also referred to as being a Negotiator, or having a Negotiator License. The Department of Corporations requires a $25,000 surety bond to guarantee the license. Those holding this license are only permitted to perform business with loans by a Licensed Lender under the California Finance Lenders Law. In other words, the mortgage broker can’t do direct loans or broker loans to banks, savings & loans, thrift & loans, or credit unions. Applicants pay fees in the amount of $100 for an investigation and $200 for the application. The broker has to show proof of being a U.S. citizen or proof of being an alien. The applicant is also required to provide: detailed past information on prior ten-year residence and work history, listing names and addresses.
Special Programs: We offer an exclusive â€œInstant Approval Online Programâ€? for this particular bond. The application takes less than five minutes to complete and the quote is given to you immediately, online. You can access the program at: Mortgage Broker – Instant Approval Online Program.