8 Hours of 2023 California DFPI MLO Continuing Education

There are three important pieces of California legislation that those who are licensed with the California Department of Financial Protection and Innovation (DFPI) must be familiar with. The DFPI requires licensees who are renewing their licenses to review the California Financing Law (CFL), the California Residential Mortgage Lending Act (CRMLA), and the California Homeowner Bill of Rights (HBOR).

This NMLS course will cover each of the three legislations, starting with the California Financing Law. This module of the course will review the licensing requirements for a finance lender, the expected conduct of those who hold these licenses, the limitations on interest rates, and the investigative powers of the Commissioner of the DFPI.

The second module will review the California Residential Mortgage Lending Act. This module will outline the conduct required to maintain a license, the surety bonding and net worth requirements, prohibited fees and owner actions, and how the Commissioner can cite licensees who don't follow the law.

The third module will highlight the California Homeowner Bill of Rights, a law passed in 2013 to give some protection to homeowners who are facing foreclosure of their residential property. This law outlines seven provisions covering dual tracking, robo-signing, single points of contact, and more.

Topics and Learning Objectives

This California NMLS course is broken down into several learning topics. At the end of the course a 15-question final exam will be given. The topics included in this course are:

1. California Financing Law
2. California Residential Mortgage Lending Act
3. California Homeowner Bill of Rights 
4. Final Exam 

Total Study Time: 1 Credit Hour (50 minutes)

This course will prepare California DFPI-licensed MLOs to:

• Define who is a finance lender, and the information that finance lenders are required to disclose to their borrowers.
• Understand how the Commissioner of the Department of Financial Protection and Innovation (DFPI) investigates finance lenders, and the penalties that can come from discovered violations.
• Outline the conduct expectations of those who are licensed to originate or offer residential mortgage loans.
• Generalize the bonding and net worth requirements for licensees.
• Recognize the many prohibited acts relating to licensee conduct.
• Identify the investigative proceedings and potential penalties that can arise from violations of the California Residential Mortgage Licensing Act.
• Describe the important points of the California Homeowner Bill of Rights relating to dual tracking, single points of contact, and rental tenant rights.
• Understand how homeowners and the California Attorney General's office can enforce the HBOR.

NMLS ID Required

You must have an NMLS ID to receive credit for this course. You will need this number before you begin the course.

If you already have an NMLS ID but don't remember what it is:

• Login into NMLS
• Click on the Composite View tab.
• Click View Individual on the sub-header row.
• The number that appears in parentheses after your name is your NMLS ID number.

If you do not have an NMLS ID and need to obtain one, use the instructions available in the NMLS Resource Center

This course will instruct mortgage loan originators on a number of regulations that they will have to comply with while taking part in their mortgage loan origination activities. Rules, such as those implemented by the Dodd-Frank Wall Street Reform and Consumer Protection Act, are set in place to protect the interest and well-being of consumers who apply for mortgages to purchase or refinance their properties. To ensure that their business practices satisfy the regulations adopted by federal laws, mortgage loan originators need to keep current on the guidelines published by entities such as the Consumer Financial Protection Bureau (CFPB).

Topics and Learning Objectives

This course consists of three sections and a final exam

1. Top 10 Federal Topics for 2023

2. Ethical Treatment of Consumers

3. The VA Home Loan Program

4. Final exam

Total study time: 7 credit hours (5 hours, 30 minutes)

Module 1: Top 10 Federal Topics for 2023

Study Time: 3 clock hours (150 minutes of federal law)

Fair lending along with compliance to the law, established rules, and implemented regulations is everyone’s responsibility. When compliance failures occur, everyone, including the customer, loses.

The topics outlined in this module are mandated by the NMLS and state regulators, covering the more egregious regulatory compliance failures recently discovered through various regulatory examinations, investigations, and audits.

Module 2: Ethical Treatment of Consumers

Study Time: 2 clock hours (100 minutes of ethics, fraud, and consumer protection)

The ethical treatment of consumers and ethical practices in mortgage lending are a high focus of regulators and consumer advocacy groups. This module will cover ethics, including identity theft prevention, fraud prevention, and consumer protection requirements.

Module 3: The VA Home Loan Program

Study Time: 2 clock hours (100 minutes of non-traditional mortgage)

The objective of the Veterans Administration (VA) mortgage loan program is to provide long-term financing to eligible American military veterans and their surviving spouses, helping veterans purchase properties with no down payment. The program allows eligible veterans to buy, build, repair, retain, or adapt a home for personal occupancy as well as refinance an existing mortgage loan.

NMLS ID Required

You must have an NMLS ID to receive credit for this course. You will need this number before you begin the course.

If you already have an NMLS ID but don't remember what it is:

• Login into NMLS
• Click on the Composite View tab.
• Click View Individual on the sub-header row.
• The number that appears in parentheses after your name is your NMLS ID number.

If you do not have an NMLS ID and need to obtain one, use the instructions available in the NMLS Resource Center