California Amends Mortgage Loan Originators Licensing Provisions

On October 4, California amended provisions under the California Finance Lenders Law regarding mortgage loan originator licensing. The amendments include the following:  (i) allowing the possibility that applicants who have an expunged or pardoned felony conviction can obtain a license, although the underlying crime, facts, or circumstances can be considered when determining whether to issue a license; (ii) authorizing a person exempt from the provisions of the California Finance Lenders Law to apply to the Commissioner of Corporations for an exempt company registration for the purpose of sponsoring one or more individuals required to be licensed under the SAFE Act if specific requirements are met; (iii) requiring an exempt person to comply with all rules and orders that the Commissioner deems necessary to ensure compliance with the federal SAFE Act and pay an annual registration fee; and (iv) authorizing a licensed mortgage originator who is an insurance producer for an insurer that is registered to do business in the state, to originate loans on behalf of exempt persons, or on behalf of a licensed financial lender that originates loans for a single exempt person.