Get licensed as a Broker or Lender in California by applying for a California Finance Lender License through the California Department of Business Oversight. Total out of pocket costs (including California state filing fees, surety bond premiums, and licensing services) are as low as $2,150* through American Mortgage Licensing.
On a daily basis, American Mortgage Licensing assists commercial lenders, consumer lenders, mortgage brokers and mortgage lenders in obtaining their California Finance Lender License, regulated by the Department of Business Oversight. We open the door for greater lending opportunities by managing your entire CFL licensing project. We set up all of the necessary paperwork and documentation that you will need in order to become approved as a California Finance Lender in as little time as possible. 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 Finance Lender) License is regulated by the California Department of Business Oversight. The CFL license is a required license for just about any type of consumer and 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 license and the CRMLA license. CFL-licensed mortgage brokers may only broker loans to CFL-licensed lenders. Most California mortgage lenders have a CFL license.
WHAT ARE THE ADVANTAGES OF OBTAINING A CFL LICENSE?
If you are not brokering or making residential loans under this license, you can hire non-licensed sales agents to originate loans under your company license. However, all employees, both part-time and full-time, must be W2 employees. They may not be contract (1099) employees. There are no exceptions to this rule. All residential loan originators must have a California mortgage loan originator 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 Mortgage Loan Originator. This individual license requires 20 hours of pre-licensing NMLS approved education, of which, 2 hours must be California 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, OnCourse Learning (formerly ProSchools). Use the Partner Code “AML” to receive a 15% discount on your course. You will want to purchase the 20 Hour CA-DBO SAFE Comprehensive Course.
WHO CAN APPLY FOR THE CFL LICENSE?
Individuals, partnerships, associations, limited liability companies and corporations can apply for the CFL license. According to the Department of Business Oversight many of the largest Fortune 500 companies have their CFL license.
WHAT ARE THE FEES?
American Mortgage Licensing’s services: $1,495
California Filing Fees: $400 residential mortgages, $300 for non-residential
Surety Bond Premiums: $250* approximate annual premium
* Bond fees are based on the applicant’s personal credit score. 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 on the CFL license. We license brokers and lenders in all fifty states.
We look forward to the opportunity to serve you.