State Law Update: California Amends Mortgage Licensing Statute

Mortgage Licensing

On September 7, California enacted Assembly Bill 2666, which updates and clarifies portions of the state's Residential Mortgage Lending Act and Finance Lenders Law to parallel federal implementation of the SAFE Act. The bill requires licensing of individuals who engage in the business of a mortgage loan originator, and sets forth exemptions for employees of nonprofit organizations and government employees. The bill also clarifies requirements for subsidiaries of depository institutions owned and controlled by federally regulated depository institutions, and addresses the validity of certain NMLS records.