Do Mortgage Brokers Need a License?

A: Yes. Mortgage Brokers working in California must have both a Department of Real Estate (DRE) License and a Nationwide Mortgage Licensing System (NMLS) license. The state license certifies that the Broker knows how to do both real estate sales and loan origination and knows the regulations associated with both. The NMLS license certifies that the Broker knows the latest national regulations on mortgages and also involves an extensive background check to certify the Broker has not been guilty of criminal activities or financial irregularities (e.g., bankruptcies).

Note: Loan officers working in banks are not required to have either a DRE nor an NMLS license. Bank employees have been exempted from these rules.

What is a “No Points” Loan, and Do You Offer These?

A “No Points” loan is defined in different ways. The best description is a loan that has no lender fees (or points). (A “point” is equal to 1% of the loan amount.) But, there is “no free lunch.” When you hear these offered, the lender will give you a higher interest rate so that you pay back these fees (and points) over time with the higher payments.

Please note: With a No Point loan you will still have other costs associated with the loan (title, escrow, appraisal, etc.).

Yes, we can work out options for you to have some or all of your lender fees paid. We can even get the lender to pay some of the other costs associated with your loan.

-David