Which of the following is required for a loan originator to legally work in California?

For a loan originator to legally work in California, the requirement is being employed by a licensed broker. In California, loan originators must be affiliated with a licensed mortgage broker or a financial institution that is authorized to make loans. This affiliation is crucial because it ensures that the loan originator operates under the oversight of a broker who is compliant with state laws and regulations governing mortgage lending. This structure also helps to protect consumers by ensuring that loan originators are held accountable for their actions within the framework established by the broker’s license.

While holding an active real estate license, completing a background check, and completing a specified number of hours of continuing education are important for maintaining professional standards and compliance, they do not serve as the foundational requirement for a loan originator to operate legally in the state. It is the employment relationship with a licensed broker that primarily establishes the legal authority for loan origination activities.