California Real Estate Corporation License MLO License Endorsement

This license endorsement is required for any licensed corporation 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 A corporation must be licensed through a designated broker or broker/officer.

Who is required to have this license endorsement? This license endorsement is required for any licensed real estate corporation 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. In order for a corporate entity to be authorized to conduct mortgage loan originator activities, this license endorsement must be issued to the real estate corporation. A corporation must have a designated broker/officer who has also been issued an endorsement. In addition, any other licensed broker/officer who conducts mortgage loan originator activities on behalf of the corporation must also obtain an endorsement. Who does not need this license endorsement? • A licensed corporation which does not conduct mortgage license activities described above. Pre-requisites for license endorsement applications • A licensed corporation must have a designated broker/officer who has also been issued a license endorsement. In addition, any other licensed broker/officer who conducts mortgage loan originator activities on behalf of the corporation must also obtain a license endorsement The designated broker/officer must electronically submit Company Forms (MU1) on behalf of the corporation, as a real estate corporation license type. The designated broker/officer must list on the Company Form (MU1), each additional licensed officer and any control person(s) (MU2 filings) for the corporation. Each additional licensed broker/officer must file an Individual Form (MU4), but should NOT file another MU1 for the corporation. Licensed corporations which intend to perform MLO licensed activities on behalf of the corporation from a branch office must first have a properly issued branch office license on file with DRE. The corporation must file Branch Form (MU3) in order for the branch office license endorsement to be issued. NMLS will charge a processing fee for the filing of each Branch location. Corporations 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 corporation license endorsement which is issued prior to October 31st, of each year will be valid through December 31, and will need to be renewed annually thereafter, if desired. A branch license endorsement which is issued on or after November 1 will be valid through December 31 of the following year.