How to Become a Licensed Mortgage Broker in California

Steps to Obtain a California Mortgage Broker License

To legally originate home loans in California, you must secure a Mortgage Broker License from the Department of Financial Protection and Innovation (DFPI). Here is the complete process:

1. Meet Basic Eligibility

• Age 18+
• High school diploma or equivalent
• U.S. citizen or permanent resident
• Pass a criminal background check

2. Complete Pre-Licensing Education

Enroll in a DFPI-approved 20-hour mortgage broker course and pass the final assessment.

3. Pass the NMLS Exam

Register with the Nationwide Mortgage Licensing System (NMLS), schedule the exam, and achieve a score of 75% or higher.

4. Submit License Application

File Form MLO 1100 with the DFPI, pay the application fee, and provide supporting documents.

5. Obtain a Surety Bond

Secure a $25,000 surety bond from a DFPI-approved provider and file it with the department.

6. Receive License and Affiliate

Upon approval, the DFPI issues your license. You must then associate with a licensed mortgage brokerage to conduct business.

7. Maintain Compliance

• Complete annual continuing education
• Keep the surety bond active
• Adhere to federal (TRID, RESPA) and state lending regulations

Success in this field also requires strong market knowledge, lender relationships, and a professional network.