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What is the minimum net worth requirement for a lender seeking a license under the California Residential Mortgage Lending Act (CRMLA)?

Correct Answer

C) $250,000

The CRMLA requires licensed lenders to maintain a minimum net worth of $250,000. This financial threshold ensures that CRMLA lenders have adequate capitalization to operate responsibly in the residential mortgage market.

Answer Options
A
$100,000
B
$500,000
C
$250,000
D
$1,000,000

Why This Is the Correct Answer

The CRMLA requires licensed lenders to maintain a minimum net worth of $250,000. This financial threshold ensures that CRMLA lenders have adequate capitalization to operate responsibly in the residential mortgage market.

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