California Gov. Jerry Brown recently signed Senate Bill 1459 into law that requires mortgage loan originators to complete additional education on California’s lending and mortgage laws. The new law amends the California Finance Lenders Law and the California Residential Mortgage Lending Act.
To obtain a California mortgage originator license, applicants must complete at least 20 hours of educational courses approved by the Nationwide Mortgage Licensing System and Registry (NMLS). New applicants are required to complete at least:
- 2 hours of federal law and regulations instruction
- 3 hours of ethics instruction, including fair lending, consumer protection and fraud
- 2 hours of instruction on lending standards for nontraditional mortgage products
- 2 hours of instruction on California lending laws and regulations
In addition, existing mortgage loan originators must complete at least eight hours of continuing education for license renewal, and will only receive credit for a continuing education course in the year the course was taken. The continuing education requirements include at least:
- 3 hours of federal law and regulations instruction
- 2 hours of ethics instruction, including lending standards for nontraditional mortgage products
- 1 hour of instruction on California lending laws and regulations
The new education requirements become effective in January 2015.
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