In California, all loan officers are not created equally.

When searching for a mortgage, it's important to know who you are dealing with and what qualifications they have. California has 3 different standards for mortgage loan officers that you should be aware of.

1)Unlicensed retail loan officer: Employed by a Federally Chartered Bank such as Wells Fargo or Bank of America:

These loan officers are not required to be licensed or tested and can originate mortgages for their respective institutions with little or no training.

2)Licensed by the department of Corporations:

This loan originator has completed 20 hours of education, paid the appropriate fees, passed the background checks and works for a mortgage broker licensed under the California Finance Lenders Law (CFL) of the Department of Corporations. Those holding this license are only authorized to negotiate loans that are made by a Licensed Lender under the California Finance Lenders Law. This means they cannot negotiate or broker loans to banks, savings & loans, thrift & loans, or credit unions.

3)Licensed by the California Department of Real estate:

This loan originator, in addition to the 20 hours of education, fees, tests and background checks, must go through the process of obtaining a California real estate license just as any real estate agent in California must to do. A DRE licensed loan originator has the same license as an agent thus the same fiduciary duty to clients. A DRE licensed originator is employed by a California real estate broker and they can list and sell real estate, and also negotiate loans secured by real estate, whether first mortgages or subordinate mortgages. A DRE licensed loan originator has all the knowledge, training and licensing required to close and fund real estate transactions as they become more complex. When searching for your next California mortgage, check http://dre.ca.gov and make sure yours is licensed.