On October 11, California Governor Arnold Schwarzenegger signed into law S.B. 36, a bill that requires the employees of licensees under the California Finance Lenders Law (CFLL) and the California Residential Mortgage Lending Act (RMLA) that are engaged in the business of mortgage loan origination to be licensed, beginning July 1, 2010. The bill similarly requires licensees under the California Real Estate Law (REL) to obtain an endorsement from the Commissioner of the California Department of Real Estate to engage in the business of mortgage loan origination, beginning December 1, 2010. Mortgage loan originator license and endorsement applicants are required to, among other things, (i) submit to fingerprinting for the purpose of a criminal history background check, (ii) complete at least twenty hours of pre-license education, and (iii) pass a qualified written test developed by the Nationwide Mortgage Licensing System (NMLS). The bill further provides that licensed mortgage loan originators must complete at least eight hours of continuing education annually and must disclose their NMLS identifier on all residential mortgage loan application forms, solicitations, and advertisements. The bill also enacts other related provisions, such as requiring REL licensees to submit an annual business activities report to the Commissioner of the California Department of Real Estate.
