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The California Residential Mortgage Lending Act (CRMLA), codified at Division 20 of the California Financial Code beginning at Section 50000, is one of three regulatory paths available to entities engaged in residential mortgage lending, servicing, or brokerage in California. Law Offices of Alan Abergel, P.C. ("LOAA") represents CRMLA licensees and applicants in licensing, ongoing compliance, and DFPI enforcement matters. The complexity and consequence of these determinations, from initial licensing structure through regulatory obligations, make competent regulatory counsel essential rather than optional.
An applicant may obtain a California residential mortgage lender license, a CRMLA servicer license, or combined CRMLA lender and servicer license authority. As DFPI mortgage banking license counsel, LOAA advises applicants on the scope of authority associated with each option.
Determining which combination of this authority a given company actually needs, as opposed to what it might be tempted to apply for, is a substantive legal judgment that affects net worth, bonding, and examination scope for the life of the license.
LOAA provides written legal opinions about such matters.
CRMLA applications are filed through the Nationwide Multistate Licensing System (NMLS), with supporting information submitted directly to the DFPI. As a California mortgage company license counsel, LOAA represents applicants throughout this process, which involves substantial coordination across multiple regulatory and financial disciplines.
The DFPI routinely issues supplemental information requests and raises concerns during its review, and LOAA manages the firm's communication with DFPI staff on the applicant's behalf.
Licensure is the beginning of a continuing regulatory relationship with the DFPI, not the end of one, and LOAA represents CRMLA licensees across various ongoing regulatory obligations that follow.
CRMLA licenses are renewed annually through NMLS. LOAA assists with annual renewal filings, branch office licensing for additional business locations, and amendments reflecting changes to a licensee's business plan, trade names, or authorized activities.
Some changes in ownership or control of a CRMLA licensee generally require DFPI notice or approval. LOAA assists with change-of-control filings and the supporting documentation the DFPI requires to review a proposed ownership transition.
Acquisition or transfer of mortgage servicing rights California transactions raise considerations distinct from origination-stage compliance. LOAA represents CRMLA servicers in structuring and executing servicing portfolio acquisitions and transfers.
The DFPI conducts periodic examinations of CRMLA licensees addressing loan origination files, servicing records, escrow account handling, and compliance systems. LOAA represents licensees throughout examinations, managing responses to examiner document requests and resolution of examination findings.
LOAA represents CRMLA licensees in DFPI administrative proceedings, including Accusations, Statements of Issues, Desist and Refrain Orders, and Citations, as well as related CFPB investigations and enforcement matters.
Employees originating residential mortgage loans on behalf of a CRMLA licensee must hold individual mortgage loan originator licenses through NMLS under the federal SAFE Act. LOAA advises licensees on mortgage loan originator sponsorship and on the individual MLO licensing, conduct, and compensation requirements applicable to sponsored originators.
Beyond licensing itself, CRMLA licensees must maintain ongoing California mortgage lender compliance addressing loan documentation, disclosure requirements, escrow account handling, and applicable federal mortgage lending laws. LOAA drafts loan documentation, including promissory notes, deeds of trust, and required state and federal disclosures, and advises licensees on the full range of compliance obligations applicable to licensed lending and servicing operations.
The Consumer Financial Protection Bureau has primary federal enforcement authority over mortgage lending and servicing. LOAA provides representation before CFPB for CRMLA licensees facing federal investigations or enforcement.
CFPB enforcement actions can result in substantial civil money penalties, consumer restitution, and consent orders imposing ongoing compliance monitoring. The firm defends mortgage lenders and servicers in CFPB proceedings, responding to Civil Investigative Demands, presenting evidence, and negotiating settlements.
Residential mortgage lenders may be subject to Bank Secrecy Act and anti-money laundering requirements when engaging in certain activities. LOAA provides assistance with BSA/AML and FinCEN regulation compliance for mortgage lenders subject to these requirements.
The firm also provides FinCEN enforcement defense when mortgage lenders face investigations or enforcement actions for alleged BSA/AML violations. FinCEN enforcement can result in civil money penalties and orders to implement remedial compliance measures. LOAA defends mortgage lenders in FinCEN proceedings.
Law Offices of Alan Abergel, P.C. represents residential mortgage lenders and servicers in CRMLA license applications, annual and Holden Act reporting, servicing portfolio transactions, examinations, and DFPI enforcement defense. Contact LOAA to discuss your CRMLA business's legal services needs.
Disclaimer: The information on this page is provided for general informational purposes only and does not constitute legal advice. No attorney-client relationship is created by reading this content. Every legal matter is unique, and you should consult directly with a qualified attorney regarding your specific circumstances.
"I engaged Alan to help me through the complexities of obtaining my Lenders License. He was very knowledgeable about the process and provided me with a high level of service.I worked quickly getting him all the information needed and he worked at my pace. He was responsive to e-mails and questions and followed up with the DFPI to make sure everything was filed correctly.I had read online that this process could take as long as 6 months however Alan completed the assignment in less than 3 I will be retaining his services in the future to ensure my company remains in compliance."
-Petroleum Realty Group Inc.
"I hired Alan to represent me as a mortgage broker before the California Department of Real Estate. I couldn't be more pleased with Alan's services from start to finish. Alan was clear and concise. Alan's communication throughout the process was professional. I received the results I hoped for. Thank you Alan. I'll definitely recommend you to ALL and use your services again in the future shall I need anything!"
-Anonymous
"Very helpful in assisting in obtaining an OCCC Texas Motor Vehicle Sales Finance License. Very knowledgeable in answering all questions the OCCC asked for on their questionnaire. Highly recommended and would re-hire for any future assistance regarding motor vehicle and finance business. God Bless!"
-Raul
