crmla

Guest 0.10 Dollars($)

please mention the licensing requirements for getting a license under California Residential Mortgage Lenders Act

carnahandavid · Joined: 21 Dec 2006 Posts: 239 58.40 Dollars($)

Hi Callebaut,

Any person, limited liability companies, trusts, joint stock companies, sole proprietorships, partnerships, corporations, joint ventures can get a license.

The requirement is that -

The applicant should be an VA, FHA, FmHA, Ginnie Mae, Fannie Mae or Freddie Mac approved lender and/or servicer.

Must have tangible net worth of at least $250,000 at the time of applying & should maintain this net worth at all times. This tangible net worth should be supported by an audited financial statement (AFS). After getting the license, the AFS is to be provided each year by the licensee.
Tangible net worth = Total Assets - ( Liabilities + Intangible Assets )
(Intangible Assets are like licenses, patents, trademarks, trade names, copyrights, service marks)

At the time of applying applicant has to provide a surety bond of $50,000 and this amount is to be maintained at all times after getting the license.

David

Guest 0.10 Dollars($)

this information will help a lot, thanks. one more thing I want to ask is what educational requirements the employees will have to meet for conducting brokerage services.

carnahandavid · Joined: 21 Dec 2006 Posts: 239 58.40 Dollars($)

Hi Callebaut,

As per the act, the employees will have to complete a 3 hour course in ethics, legal aspects of real estate & professional conduct. They will also have to complete a 3 hour course in duties in real estate brokerage practices and agency relationships. Both these courses are to be completed before starting to provide the brokerage services and afterwards once every 4 years.

David

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