CA SB376

Specifies that a "mortgage loan originator" must perform loan application, offer, or negotiation activities "habitually or repeatedly" to meet the definition under the Real Estate Law, California Finance Lenders Law, and California Residential Mortgage Lending Act.

Creates an exemption from mortgage loan originator licensing for individuals who take residential mortgage loan applications or negotiate loan terms for no more than 5 residential mortgage loans in a calendar year, provided the loans are made in connection with the sale of residential property and funded from the seller's own funds.

Amends definitions of "mortgage loan originator" in Business and Professions Code Section 10166.01 and Financial Code Sections 22013 and 50003.5 to apply the habituality requirement and new exemption consistently across state mortgage lending laws.

Defines "own funds" to clarify that seller-financed loans qualifying for the exemption must use the seller's cash, corporate capital, or warehouse credit lines, and excludes funds provided by third parties for subsequent purchase or assignment.