By Jim Milano, Weiner Brodsky Kider PC
The California Department of Real Estate (“DRE”) published an advisory to remind persons who intend to apply for a mortgage loan originator license endorsement through the DRE pursuant to S.2155, the Economic Growth, Regulatory Relief and Consumer Protection Act (“EGRRCPA”), that they must first hold a valid real estate license issued by the DRE.
The EGRRCPA amended the federal SAFE Act, effective November 24, 2019, by granting certain applicants for mortgage loan originator licenses a temporary authority to operate as mortgage loan originators. The DRE’s advisory clarifies that the DRE intends to take steps to terminate an applicant’s temporary authority to operate in cases where the applicant does not hold a valid real estate license, which is a prerequisite to receiving a mortgage loan originator license endorsement under California’s Real Estate Law.
Note that the advisory only relates to individuals who are applying for a mortgage loan originator license endorsement through the DRE. It does not specifically impact mortgage loan originator license applications through the California Department of Business Oversight, which administers the California Residential Mortgage Lending Act and the California Financing Law.