What is the required surety bond amount for a CRMLA-licensed lender in California?
Correct Answer
A) $50,000
CRMLA-licensed lenders must maintain a surety bond of $50,000. This bond provides a financial guarantee to protect consumers who may be harmed by the lender's activities.
Why This Is the Correct Answer
CRMLA-licensed lenders must maintain a surety bond of $50,000. This bond provides a financial guarantee to protect consumers who may be harmed by the lender's activities.
Why the Other Options Are Wrong
Option B: $25,000
$25,000 is below the CRMLA's surety bond requirement. This figure is sometimes confused with bond amounts in other states.
Option C: $100,000
$100,000 is double the actual required bond. The CRMLA does not require this amount.
Option D: $200,000
$200,000 far exceeds the surety bond requirement and may be confused with net worth figures.
Memory Technique
CA -> ca-crmla-lenders-servicers-bonds-net-worth-servicing
Exam Tip
CRMLA questions usually turn on lender versus servicer authority, branch authority, $250,000 net worth, surety bond coverage, servicing duties, DFPI oversight, and exemptions for regulated depository institutions.
Common Mistakes to Avoid
- -Using a national baseline answer when California has agency-specific DFPI or DRE requirements
- -Confusing CFL, CRMLA, covered-loan, usury, servicing, and DRE endorsement rules
- -Relying on legacy California state-exam or education assumptions instead of current NMLS source pages
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