Someone looking to become a mortgage broker or residential mortgage lender in California has to obtain a license. In order to use a California residential mortgage license for mortgage brokering activities, you need to hold a mortgage loan originator license as well. Both are available to be applied for through the Nationwide Mortgage Licensing System (NMLS).
You also need to become an approved lender for at least one of the following: The Federal Housing Administration, the Veterans Administration, the Farmers Home Administration, the Government National Mortgage Association (Ginnie Mae), the Federal National Mortgage Association (Fannie Mae), or the Federal Home Loan Mortgage Corporation (Freddie Mac). You also must submit audited financial statements showing a net worth of at least $250,000. Click here to learn more.
California also requires you to submit a $50,000 surety bond in order to become a residential mortgage lender or mortgage broker.
Where can you instantly purchase mortgage broker bonds?
Colonial Surety offers the direct and digital way to obtain a mortgage broker bond which is able to be used to become a residential mortgage lender. We are the insurance company — which means no agent, no broker, and no middleman. The steps are easy — get a quote online, fill out your information, and enter your payment method. Your bond will be available instantly. It’s that simple!