The California Mortgage Lending Act (CRMLA) is contained in Division 20 of the California Finance Code, Sections 50000 et seq. This regulation is contained in Chapter 11.5 of Chapter 3 of Title 10 of the California Code of Regulations, commencing with Section 1950.003 (10 CCR §1950.003 et seq.).
CRMLA was enacted in 1994 and went into effect in 1996. The CRMLA was enacted to replace existing laws that license lenders under the Real Estate Act and the California Financial Services Act. This is to provide mortgage banks with licensing legislation that, among other things, aims to: It regulates the primary functions of mortgage loan origination and repayment. Unlike real estate law or the California Financier Act, CRMLA is specifically designed to license and regulate mortgage banking operations. Applicants under the CRMLA can be licensed as a lender, a servicer, or both.
CRMLA authorizes licensees to make federally related mortgage loans, make loans to finance home construction, sell loans to institutional investors, and service such loans. . Licensee is authorized to buy and sell federally related mortgage loans and to provide institutional underwriting services. Licensees are authorized to service federally related mortgage loans, whether by originating loans or purchasing servicing portfolios.
Licensed CRMLA lenders are also authorized to provide brokerage services to borrowers by obtaining mortgage loans from institutional investors on their behalf. Employees who engage in brokerage work on behalf of a CRMLA licensee must be employed by the licensee and be a licensed mortgage loan originator.
