Attention Mortgage Loan Origination Applicants: DRE Notices of Intent to Deny

The DRE has recently announced that it is issuing “Notices of Intent to Deny” in situations where the applicant does not hold a real estate license at the time of the application. This can lead to the formal denial of the MLO endorsement application. Such a denial becomes a type of regulatory action against the applicant and it may create problems for subsequent applications whether to the DRE or other licensing agencies.

The DRE will not issue MLO endorsements to those lacking a California real estate salesperson or broker license at the time of the MLO application.