California Financing Law License Services
Get licensed as a finance broker or lender in California by applying for a California Financing Law License. This finance license is formerly known as the California Finance License and is often simply referred to as a CFL License.
Since 2005, American Mortgage Licensing has assisted companies from various financial industries in obtaining their California Financing Law License. While the CFL License is one of the most difficult financial licenses to obtain in the country, our experience and consistent involvement with this application process over the years will give your company the best chance of ensuring a successful outcome for your license application. Just as importantly, hiring us to manage your CFL license application will decrease the amount of time that it takes to obtain your CFL license. We set up and complete all of the necessary paperwork and documentation that you will need in order to become approved as a California Financing Law Broker or Lender. Especially of late, the DFPI is consistently adding new requirements and challenging questions that cannot be found on their actual license application. Not having this information upfront will only lead to longer lead times and more frustration on your part if you attempt to get licensed without the assistance of someone that has a great deal of experience with the CFL License application process. We do as much of the work as possible so that you can remain focused on your business
WHAT IS THE CFL LICENSE?
The CFL (California Financing Law) License is regulated by the California Department of Financial Protection and Innovation. The CFL license is a required license for just about any type of consumer or commercial lending activity in California. It may also be used for residential mortgage brokers and mortgage lenders as an alternative license to the California DRE Broker license and the CRMLA license. An important note with this license is that if you are brokering loans, you may only broker to a licensed CFL Lender. This rule also applies to activities such as third-party processing, lead generators, etc.
WHAT ARE THE REQUIREMENTS FOR A CALIFORNIA FINANCE LENDER LICENSE?
California Finance Lender License Requirements
There is no physical office requirement. Applicants do not need to be from the State of California. Non-residential mortgage license applicants are required to maintain a minimum net worth amount of only $25,000 in their company (Assets minus Liabilities) and obtain and maintain a surety bond in the amount of $25,000. We will set up the surety bond application on your behalf. Non-Residential broker and lender applicants are not required to take classes nor pass an exam. No specific lending experience is required.
ADDITIONAL REQUIREMENTS FOR OWNER-OCCUPIED RESIDENTIAL MORTGAGE BROKERS AND LENDERS
Residential mortgage applicants must maintain a minimum net worth amount of $50,000 if brokering only, or $250,000 if funding owner-occupied residential mortgage loans. All residential mortgage loan originators must be licensed individually as a California DFPI Mortgage Loan Originator. This individual license requires 20 hours of pre-licensing NMLS-approved education, of which, 2 hours must be CA DFPI specific. Individuals must also take and pass the national component NMLS exam. While we are not an education provider, we recommend taking the 20-hour NMLS Pre-licensing course through our preferred provider, Mortgage Educators & Compliance. Use the Partner Code “AMLPE2” to receive a significant discount on your course. You will want to purchase the 20-Hour CA-DFPI Course by selecting the New License option at the link above.
WHO CAN APPLY FOR THE CFL LICENSE?
Individuals, partnerships, associations, limited liability companies, and corporations can apply for the CFL license.
WHAT ARE THE FEES?
American Mortgage Licensing’s services are as low as $2,500, but will ultimately based on the total number of control persons that are part of your organization. Be sure to use the form below to receive a quick quote for our services.
California Filing State Fees: $400 for residential mortgages, $300 for non-residential
Surety Bond Premiums: $250* approximate annual premium
* Bond fees are based on the applicant’s personal credit score. The example above represents an applicant with good to excellent credit.
HOW DO I START THE PROCESS?
To begin your project immediately, contact American Mortgage Licensing at 469-354-0830, or use the form below. We will be happy to answer any questions you have about the CFL license. We also license finance brokers and lenders in all fifty states.
We look forward to the opportunity to serve you.