NMLS SAFE MORTGAGE LICENSING
PRACTICE GUIDE 2026 LOAN TYPES AND
UNDERWRITING BASICS EXPLAINED
◉ TILA finance charge violation
Answer: creditor may be liable for twice the amount of the finance
charge minimum of 100 or max of 1000. willful violation can be
5,000 fine and 1 year in prison
◉ record retention
Answer: hud 1 and hud 5 years, all other documents 3 years
◉ at hearing or trial
Answer: licensee must testify, it is privilege not a right to be licensed.
◉ Blind Advertisements
Answer: gives only number, box office number is prohibited under
subchapter 11.5 chapter 3 title 10 of CFR
◉ Immediate Approval Advertisements
Answer: prohibited considered deceptive practice
, ◉ report requirement
Answer: failure to file may suspend license 30 days after due
◉ renewing a license
Answer: if license allowed to lapse must show ce was completed
from reqts of last year
◉ New Branch offices
Answer: lender must submit a notice to the commissioner 10 days
prior or pay 100 fine per day first 10 days and $10 a day after that.
◉ application deficiency
Answer: 90 days to finish incomplete application or will be denied
and money kept
◉ Who must get a license
Answer: any person/company who does more than 8 loans a year
◉ Enforcement Division (ENF)
Answer: under California corporations commissioner, responsible
for enforcing laws under the investment and fiduciary programs by
department of corporations (DOC)
PRACTICE GUIDE 2026 LOAN TYPES AND
UNDERWRITING BASICS EXPLAINED
◉ TILA finance charge violation
Answer: creditor may be liable for twice the amount of the finance
charge minimum of 100 or max of 1000. willful violation can be
5,000 fine and 1 year in prison
◉ record retention
Answer: hud 1 and hud 5 years, all other documents 3 years
◉ at hearing or trial
Answer: licensee must testify, it is privilege not a right to be licensed.
◉ Blind Advertisements
Answer: gives only number, box office number is prohibited under
subchapter 11.5 chapter 3 title 10 of CFR
◉ Immediate Approval Advertisements
Answer: prohibited considered deceptive practice
, ◉ report requirement
Answer: failure to file may suspend license 30 days after due
◉ renewing a license
Answer: if license allowed to lapse must show ce was completed
from reqts of last year
◉ New Branch offices
Answer: lender must submit a notice to the commissioner 10 days
prior or pay 100 fine per day first 10 days and $10 a day after that.
◉ application deficiency
Answer: 90 days to finish incomplete application or will be denied
and money kept
◉ Who must get a license
Answer: any person/company who does more than 8 loans a year
◉ Enforcement Division (ENF)
Answer: under California corporations commissioner, responsible
for enforcing laws under the investment and fiduciary programs by
department of corporations (DOC)
