California DFPI License Requirements

California (DFPI) education requirements for mortgage licensing

In the state of California, mortgage loan originators, under the Department of Financial Protection & Innovation (DFPI), are required to:

1. Complete a Criminal Background Check (CBC).
2. Authorize a credit report through the NMLS that demonstrates financial responsibility.
3. Fulfill all state and federal education requirements as designated by your state agency.
4. Take and pass the National Component.
5. All applicants must apply for a license through the NMLS by filing a Form MU4 and receiving a sponsorship by a company holding a valid unique identifier with NMLS and which is licensed by the Financial Protection & Innovation (DFPI).
6. An applicant must demonstrate financial responsibility, character and general fitness such as to command the confidence of the community and to warrant a determination that the mortgage loan originator will operate honestly, fairly and efficiently.
7. Coverage by a surety bond provided by the mortgage loan originator’s employer.

California (DFPI) NMLS Pre-Licensing Education Requirements:

New state-licensed MLOs are required to complete 20 hours of NMLS-approved education. This includes:

• 3 hours of federal law
• 3 hours of ethics
• 2 hours of non-traditional mortgage lending training
• 10 hours of electives
• 2 hours of California state-specific education

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California (DFPI) Continuing Education Requirements:

State-licensed MLOs are required to complete 8 hours of NMLS-approved mortgage education annually beginning the year they are licensed (unless PE was completed in the same year). This includes:

• 3 hours of federal law
• 2 hours of ethics
• 2 hours of non-traditional mortgage lending
• 1 hour of California state-specific education

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MLOs are advised that to comply with the SAFE Act’s “successive years” rule, they may not take the same CE course two years in a row.

California (DFPI) Mortgage Licensing:

• California Department of Financial Protection & Innovation
• Phone: 213-576-7565
• Email: MLO.Licensing@dfpi.ca.gov    
• Website: www.dpfi.ca.gov

NMLS Resources:

• California (DFPI) MLO License Description Page
• Professional Standards: Mortgage Education 
• Professional Standards: Criminal Background Check 
• Professional Standards: Credit Report 
• Professional Standards: MLO Testing