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Under the California Residential Mortgage Lending Act, which of the following activities requires a mortgage loan originator to be licensed through the DFPI?

Correct Answer

D) Offering or negotiating terms of a residential mortgage loan for a licensed mortgage company

Under CRMLA, offering or negotiating mortgage loan terms for a licensed mortgage company requires MLO licensing. Employees of depository institutions are generally exempt from state licensing requirements.

Answer Options
A
Taking a residential mortgage loan application for a depository institution
B
Underwriting loans for a federally chartered bank
C
Processing loan documents for a credit union
D
Offering or negotiating terms of a residential mortgage loan for a licensed mortgage company

Why This Is the Correct Answer

Under CRMLA, offering or negotiating mortgage loan terms for a licensed mortgage company requires MLO licensing. Employees of depository institutions are generally exempt from state licensing requirements.

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