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A California credit union originates residential mortgage loans for its members. Does the credit union need a CRMLA license?

Correct Answer

C) No, credit unions are exempt from CRMLA licensing requirements

Federal and state credit unions authorized to transact business in California are exempt from the California Residential Mortgage Lending Act licensing provisions. A credit union originating residential mortgage loans for its members does not need a separate CRMLA license solely because of that activity.

Answer Options
A
Yes, all entities originating residential mortgages in California must hold a CRMLA license
B
Yes, but only if the credit union originates more than 50 loans per year
C
No, credit unions are exempt from CRMLA licensing requirements
D
No, but only if the credit union is federally chartered

Why This Is the Correct Answer

Federal and state credit unions authorized to transact business in California are exempt from the California Residential Mortgage Lending Act licensing provisions. A credit union originating residential mortgage loans for its members does not need a separate CRMLA license solely because of that activity.

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