California Real Estate Broker License MLO License Endorsement

Please note that brokers working as a sole proprietor must file both as a company and as an individual. See description below: This license endorsement is required for any sole proprietor that, for compensation or gain, or in the expectation of compensation or gain, directly or indirectly accepts or offers to accept an application for a mortgage loan, solicits or offers to solicit a mortgage loan on behalf of a borrower, or negotiates or offers to negotiate the terms and conditions of a mortgage loan on behalf of a lender for residential property in California.

Who is required to have this license endorsement? This license endorsement is required for a real estate broker who acts as a sole proprietor that, for compensation or gain, or in the expectation of compensation or gain, directly or indirectly accepts or offers to accept an application for a mortgage loan, solicits or offers to solicit a mortgage loan on behalf of a borrower, or negotiates or offers to negotiate the terms and conditions of a mortgage loan on behalf of a lender for residential property containing one to four units in California. Who does not need this license endorsement? • Any licensed broker who does not conduct mortgage license activities described above. • Any person exempt from licensing pursuant to Section 10166.01(b)(2) of the California Business and Professions Code. Pre-requisites for license applications? • Testing • Criminal Background Check • Pre-license Education Brokers who intend to conduct MLO activities on their own as a sole proprietor must submit a company (MU1) filing and request a sponsorship of their individual (MU4) filing through NMLS. Brokers who employ salespersons or broker associates will need to create a company relationship and request a sponsorship prior to these employees performing residential mortgage loan activities. Unlike the underlying real estate license, a company license endorsement which is issued prior to October 31st, of each year will be valid through December 31st, and will need to be renewed annually thereafter, if desired. A branch license endorsement which is issued on or after November 1st will be valid through December 31st of the following year.