How to become a California Mortgage Loan Originator MLO Licensee
To become a Mortgage Loan Originator (MLO) in California, you’ll need to follow a series of steps outlined by the Nationwide Multistate Licensing System (NMLS) and meet state-specific requirements. Here’s a straightforward guide to get you started:
First, create an account with the NMLS. Visit their website, register as an individual, and obtain your unique NMLS ID number. This ID will follow you throughout your career as an MLO.
Do you have your NMLS number yet?
If you still need to do this, it takes 1 to 2 minutes to obtain your NMLS number.
https://www.statemortgageregistry.com/Public/Login.aspx
Click "Request an account."
Click "Individual."
Next, complete 20 hours of NMLS-approved pre-licensing education. This includes 3 hours of federal law, 3 hours of ethics, 2 hours of nontraditional mortgage products, and 9 hours of electives, plus an additional 2 hours of California-specific content if you’re pursuing a license through the California Department of Financial Protection and Innovation (CA-DFPI). You can take this course package online through our NMLS-approved educational provider, AAA Mortgage Training Course Provider #1400980. Here is a link for our California DFPI 20-hour MLO Online Course Bundle with Test Prep Program version if you are not licensed as a real estate sale agent or broker through CA DRE. If you are licensed as a CA DRE Sales agent or broker, you need this CA DRE 20-hour course package that includes our powerful test preparation program; you obviously know of the need and potency of a test prep program since you already earned your CA DRE certification by passing the exam likely with the assistance of a test prep program.
After finishing your education, you’ll need to pass the SAFE MLO exam. This national test, administered by Prometric, has 115 scored questions, requires 75% or higher to pass, and costs $110. Here are our instructions on scheduling the NMLS exam; it covers federal mortgage laws, ethics, and general mortgage knowledge. Schedule it through the NMLS website, and consider using prep materials to boost your chances. If you have already taken the required 20-hour course, then use AAA Mortgage Training’s NMLS Test Prep program to successfully pass the NMLS MLO SAFE exam on your first attempt.
Once you pass, submit your license application through the NMLS portal using Form MU4. You’ll pay a $30 NMLS processing fee, a $300 California licensing fee, and a $15 credit report fee. You’ll also need to authorize a criminal background check ($36.25) and submit fingerprints, which you can schedule via the NMLS system. California requires you to demonstrate financial responsibility and good character, so any significant issues in your background could complicate approval.
Finally, secure sponsorship from a licensed employer. In California, you can’t originate loans without being employed by a company licensed under the CA-DFPI (for California Finance Law or Residential Mortgage Lending Act loans) or the California Department of Real Estate (CA-DRE, which requires a real estate license first). Your employer will verify your sponsorship through NMLS and activate your license.
The process can take a few months, depending on how quickly you complete the education, pass the exam, and find a sponsor. Total costs, including education, exam, and fees, typically fall between $700 and $1,000. Once licensed, you’re ready to help clients navigate the mortgage market in California!