CA SB1137

Requires real estate brokers to ensure salespersons and licensees hold a mortgage loan originator license endorsement before engaging in mortgage origination activities; makes acting as a mortgage loan originator without proper licensing a crime punishable by up to $20,000 in fines or six months imprisonment.

Establishes higher net worth requirements for finance lenders and brokers: $250,000 for those employing mortgage loan originators and making residential mortgage loans, and $50,000 for brokers arranging (but not making) such loans.

Changes assessment notification and payment deadlines for finance lenders and brokers from November 30/December 31 to September 30/October 31, and allows the commissioner to require higher surety bonds for licensees employing mortgage loan originators.

Modifies mortgage loan originator licensing requirements to require commissioners to deny applications unless specified findings are made, shifts license expiration dates from January 31 to December 31, and establishes administrative hearing procedures before license denial.

Imposes $50-$100 daily penalties on real estate brokers and salespersons failing to notify the Department of Real Estate or obtain required mortgage loan originator endorsements within 30 days of commencing such activities.