A company buys servicing rights on 2,400 California residential mortgage loans and originates none of them. Assuming it has no applicable exemption or alternative authorization, is servicing-only activity within CRMLA licensing requirements?
Correct Answer
A) It still needs a CRMLA license: servicing is licensed as well as lending
The CRMLA licenses making or servicing residential mortgage loans, so a pure servicer is within it and carries the same tangible net worth floor. Other choices: not originating does not take a servicer outside the Act; the Financing Law is a different statute for different activity; and the duty does not wait on a foreclosure. Source: Cal. Fin. Code § 50002
Why This Is the Correct Answer
The CRMLA licenses making or servicing residential mortgage loans, so a pure servicer is within it and carries the same tangible net worth floor. Other choices: not originating does not take a servicer outside the Act; the Financing Law is a different statute for different activity; and the duty does not wait on a foreclosure. Source: Cal. Fin. Code § 50002
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