If a finance lender or broker licensee employs mortgage loan originators, what is the required net worth?

The correct answer is based on the California Financial Code, which outlines the requirements for finance lenders and brokers who employ mortgage loan originators. When a finance lender or broker licensee has employees who are acting as mortgage loan originators, they are required to maintain a minimum net worth of $250,000.

This regulation is in place to ensure that the lending entity has sufficient financial backing to cover potential liabilities and to operate responsibly within the mortgage industry. The higher net worth requirement reflects the added risk and complexity associated with employing multiple mortgage loan originators, which may lead to increased transactions and financial exposure.

This requirement is designed to provide a level of security for consumers and to ensure that the licensed entities have the financial capability to meet their obligations, which is critical in maintaining trust and integrity within the financial lending market in California.