Skip to content
Pass California

Financing, 9% of the examination

SAFE Act and MLO endorsement

The federal law requiring mortgage loan originators to be licensed or registered through the NMLS with a unique identifier.

A DRE licence authorises mortgage loan brokerage activity. The MLO endorsement, obtained through the NMLS, authorises residential mortgage loan origination. The two operate together rather than as alternatives, which is the point candidates most often get wrong.

See it in a question

One question from Financing, so the term lands in the context the exam uses it in.

Financing ยท 9%Mortgages/Deeds of Trust/Notes

California lenders overwhelmingly use a deed of trust rather than a mortgage. What practical difference matters most to a defaulting borrower?

Written to DRE's published topic list. Not a real examination question, since reproducing those is a misdemeanour under B&P Code section 123.

Where this is tested

FinancingDeeds of trust rather than mortgages, trustee's sale rather than judicial foreclosure, and the loan brokerage rules that sit between DRE and the SAFE Act.9%Practise Financing18 questions on this area, every option explained.Practice

Other terms in this area