The procedures set forth in this section are applicable to a person who is required to be licensed pursuant to Section 50002 of the Code as a residential mortgage lender, mortgage servicer, or as a residential mortgage lender and servicer. The application for a license as a residential mortgage lender, mortgage servicer, or residential mortgage lender and servicer shall be filed as follows:
(a) INITIAL APPLICATION: The application for a license as a residential mortgage lender, mortgage servicer, or residential mortgage lender and servicer under subdivision (a) of Section 50002 of the Code and any amendment to such application shall be filed upon Form MU1 (Uniform Mortgage Lender/Mortgage Broker Form) and any exhibits, in accordance with the instructions of NMLS for transmission to the Commissioner. Exhibits that cannot be submitted through NMLS shall be submitted directly to the Commissioner. The notices set forth in Section 1950.122.8 of Subchapter 11.5 of these rules are part of every application. An applicant shall provide the following information, exhibits and documentation in the manner provided: (1) An applicant shall identify all fictitious business names on Form MU1. (A) For each fictitious business name, an applicant shall submit directly to the Commissioner a Fictitious Business Name Statement bearing the seal of the county clerk.(B) An applicant may not use a fictitious business name until the Commissioner approves the use of the name. An applicant may not permit a mortgage loan originator sponsored by the applicant or a branch office to use any name not approved by the Commissioner.(C) Every applicant and licensee shall comply with the rules governing the filing of a fictitious business name set forth in Business and Professions Code Section 17900 et seq.(2) For every additional business location, an applicant shall submit through NMLS a Uniform Mortgage Branch Office Form (Form MU3) in accordance with Section 1950.122.4.1 of Subchapter 11.5 of these rules.(3) An applicant shall provide the names, personal history, and experience of individual applicants, officers, directors, managing members (in the case of a limited liability company), general and managing partners (in the case of a partnership), and control persons (both direct and indirect) of the applicant through NMLS on Form MU1 within the "Directors and Executive Officers" section and on Form MU2. (A) The named individuals shall provide authorization for, and subsequent delivery of, fingerprints to NMLS or the California Department of Justice, or both, as applicable.(B) An applicant shall pay all fees required for the criminal history background check.(4) An applicant shall submit through NMLS as an exhibit to Form MU1 audited financial statements with an unqualified opinion prepared by an independent certified public accountant in accordance with generally accepted accounting principles and acceptable to the Commissioner. The audited financial statements shall be prepared as of the applicant's most recent fiscal year end, or a more recent date, and must document a minimum tangible net worth of $250,000.(5) An applicant shall submit directly to the Commissioner a Customer Authorization or Disclosure of Financial Records (Form MBL 1950.122B (Rev. 02/01), hereby incorporated by reference), and maintain a copy in the applicant's books and records as provided in Section 50314 of the Code. This authorization is effective as of the date of execution and shall remain effective until five years after the surrender or revocation of the residential mortgage lender, mortgage servicer, or residential mortgage lender and servicer license. The authorization may not be revoked.(6) In addition to the identification of business activities requested on Form MU1, an applicant shall submit a detailed description of the applicant's business activities directly to the Commissioner. If an applicant answers yes to either question (7)(A) or (7)(B) of Form MU1, the applicant must also submit an organizational chart.(7) An applicant shall submit directly to the Commissioner evidence of surety bond in accordance with Section 1950.205.1 of Subchapter 11.5 of these rules.(8) If an applicant intends to engage in any activities not specified in Items 4 and 5 of Form MU1, the applicant shall submit this information directly to the Commissioner.(9) Business entities shall submit the following documents directly to the Commissioner: (A) A corporate applicant shall submit an original certificate of qualification or good standing from the California Secretary of State executed not more than sixty days before the filing of the application. The certificate must show that the applicant is authorized to transact business in the State of California.(B) A foreign corporation shall submit an original certificate of qualification or good standing from the Secretary of State of the state of incorporation executed not more than 60 days before the filing of the application, showing that the applicant is authorized to transact business in that state.(C) A partnership applicant shall submit its partnership agreement.(D) A limited partnership or limited liability company applicant shall submit an original certificate of qualification or good standing from the California Secretary of State executed not more than sixty days before the filing of the application, showing that the applicant is authorized to transact business in the State of California.(E) A foreign limited partnership or limited liability company applicant shall submit an original certificate of qualification or good standing from the Secretary of State of the state of formation executed not more than sixty days before the filing of the application, showing that the applicant is authorized to transact business in that state.(10) An applicant shall submit directly to the Commissioner evidence of federal agency approval for the applicant to engage in business as a lender or servicer of federally related mortgage loans, in accordance with subdivisions (l) and (p) of Section 50003 of the Code.(11) Every applicant shall provide a registered agent for service of process in item 2(A) of Form MU1 that is located within the state of California.(12) An applicant shall provide its website information through NMLS on Form MU1.(13) The individual attesting to the filing of the Form MU1 must be a duly authorized individual who has submitted a Form MU2, or has been delegated to attest to the filing by an individual who has submitted a Form MU2. The attestation provided pursuant to this paragraph shall constitute an agreement to comply with the requirements of Section 50124 of the Code.(b) FILING FEE: Pursuant to Section 50121 of the Financial Code, the application fee ($900), the investigation fee ($100) and the fingerprint processing fees ($20 per set to the Department of Business Oversight and additional fees for the Department of Justice) related to the fingerprint and criminal background checks, if applicable, shall be paid through NMLS for transmission to the Commissioner. The payment of fingerprint processing fees shall be filed directly with the Commissioner until such time as NMLS can accept the fee. Fees are not refundable.(c) COMPLETION OF FILING AND ISSUANCE OF LICENSE: An application for licensure as a residential mortgage lender, mortgage servicer, or residential mortgage lender and servicer is not deemed complete until all required fees, all required submissions, and all background and investigative reports are received by the Commissioner. The filing of Form MU1 with NMLS does not constitute automatic approval of a license. The residential mortgage lender, mortgage servicer, or residential mortgage lender and mortgage servicer shall not consider the application approved until it is approved by the Commissioner and a license is issued to the applicant. In accordance with Section 50126(b), the Form MU1 application may be considered withdrawn if the Commissioner does not receive the requested information contained in the notification of a deficiency within 90 days of the notification.(d) FILING AN AMENDMENT: In the event of a change to the information in the application, or exhibits thereto, the residential mortgage lender, mortgage servicer, or residential mortgage lender and servicer applicant or licensee shall file an amendment to the Form MU1, MU2 or MU3 through NMLS in accordance with the procedures in Section 1950.122.9 of Subchapter 11.5 of these rules. Prior to the issuance of a license, any amendment to an application shall be filed within five (5) days. Any change that cannot be reported through NMLS shall be reported directly to the Commissioner.Cal. Code Regs. Tit. 10, § 1950.122.4
1. New section filed 4-1-2010 as an emergency; operative 4-1-2010 (Register 2010, No. 14). A Certificate of Compliance must be transmitted to OAL by 9-28-2010 or emergency language will be repealed by operation of law on the following day.
2. New section refiled 9-28-2010 as an emergency, including amendment of subsection (a)(5) and repealer of subsection (e); operative 9-28-2010 (Register 2010, No. 40). A Certificate of Compliance must be transmitted to OAL by 12-27-2010 or emergency language will be repealed by operation of law on the following day.
3. New section refiled 12-23-2010 as an emergency; operative 12-23-2010 (Register 2010, No. 52). A Certificate of Compliance must be transmitted to OAL by 3-23-2011 or emergency language will be repealed by operation of law on the following day.
4. Certificate of Compliance as to 12-23-2010 order, including amendment of subsections (a)(3) and (a)(5), new subsection (a)(13) and amendment of NOTE, transmitted to OAL 3-14-2011 and filed 4-25-2011; amendments operative 5-25-2011 (Register 2011, No. 17).
5. Change without regulatory effect amending subsection (b) filed 8-13-2014 pursuant to section 100, title 1, California Code of Regulations (Register 2014, No. 33). Note: Authority cited: Sections 50002, 50120 and 50304, Financial Code. Reference: Sections 17900, 17910, 17913 and 17926, Business and Professions Code; Section 1798.17, Civil Code; Section 7473, Government Code; Sections 50002, 50002.5, 50120, 50121, 50122, 50124, 50130, 50200, 50201, 50205, 50206, 50208, 50301, 50314 and 50146, Financial Code; Section 17520, Family Code; and Section 11077.1, Penal Code.
1. New section filed 4-1-2010 as an emergency; operative 4-1-2010 (Register 2010, No. 14). A Certificate of Compliance must be transmitted to OAL by 9-28-2010 or emergency language will be repealed by operation of law on the following day.
2. New section refiled 9-28-2010 as an emergency, including amendment of subsection (a)(5) and repealer of subsection (e); operative 9-28-2010 (Register 2010, No. 40). A Certificate of Compliance must be transmitted to OAL by 12-27-2010 or emergency language will be repealed by operation of law on the following day.
3. New section refiled 12-23-2010 as an emergency; operative 12-23-2010 (Register 2010, No. 52). A Certificate of Compliance must be transmitted to OAL by 3-23-2011 or emergency language will be repealed by operation of law on the following day.
4. Certificate of Compliance as to 12-23-2010 order, including amendment of subsections (a)(3) and (a)(5), new subsection (a)(13) and amendment of Note, transmitted to OAL 3-14-2011 and filed 4-25-2011; amendments operative 5-25-2011 (Register 2011, No. 17).1. New section filed 4-1-2010 as an emergency; operative 4-1-2010 (Register 2010, No. 14). A Certificate of Compliance must be transmitted to OAL by 9-28-2010 or emergency language will be repealed by operation of law on the following day.
2. New section refiled 9-28-2010 as an emergency, including amendment of subsection (a)(5) and repealer of subsection (e); operative 9-28-2010 (Register 2010, No. 40). A Certificate of Compliance must be transmitted to OAL by 12-27-2010 or emergency language will be repealed by operation of law on the following day.
3. New section refiled 12-23-2010 as an emergency; operative 12-23-2010 (Register 2010, No. 52). A Certificate of Compliance must be transmitted to OAL by 3-23-2011 or emergency language will be repealed by operation of law on the following day.
4. Certificate of Compliance as to 12-23-2010 order, including amendment of subsections (a)(3) and (a)(5), new subsection (a)(13) and amendment of Note, transmitted to OAL 3-14-2011 and filed 4-25-2011; amendments operative 5-25-2011 (Register 2011, No. 17).
5. Change without regulatory effect amending subsection (b) filed 8-13-2014 pursuant to section 100, title 1, California Code of Regulations (Register 2014, No. 33).1. New section filed 4-1-2010 as an emergency; operative 4-1-2010 (Register 2010, No. 14). A Certificate of Compliance must be transmitted to OAL by 9-28-2010 or emergency language will be repealed by operation of law on the following day.
2. New section refiled 9-28-2010 as an emergency, including amendment of subsection (a)(5) and repealer of subsection (e); operative 9-28-2010 (Register 2010, No. 40). A Certificate of Compliance must be transmitted to OAL by 12-27-2010 or emergency language will be repealed by operation of law on the following day.
3. New section refiled 12-23-2010 as an emergency; operative 12-23-2010 (Register 2010, No. 52). A Certificate of Compliance must be transmitted to OAL by 3-23-2011 or emergency language will be repealed by operation of law on the following day.
4. Certificate of Compliance as to 12-23-2010 order, including amendment of subsections (a)(3) and (a)(5), new subsection (a)(13) and amendment of Note, transmitted to OAL 3-14-2011 and filed 4-25-2011; amendments operative 5-25-2011 (Register 2011, No. 17).
5. Change without regulatory effect amending subsection (b) filed 8-13-2014 pursuant to section 100, title 1, California Code of Regulations (Register 2014, No. 33).