What is a common requirement for mortgage lending under California regulations?

Licensing of all mortgage providers is a fundamental requirement under California regulations to ensure that all individuals and entities engaged in mortgage lending meet certain standards. This licensing process involves checking the qualifications, background, and financial stability of mortgage lenders, thereby protecting consumers and maintaining the integrity of the mortgage lending industry.

In California, the Department of Business Oversight (DBO) oversees the licensing of mortgage lenders and mortgage brokers, requiring them to adhere to laws and guidelines designed to promote fair lending practices. This helps ensure that borrowers are treated fairly and that lenders operate within a legal and regulatory framework.

Other options do not represent common requirements in California's mortgage lending regulations. Mandatory insurance isn’t universally required for all loans, as insurance requirements can vary based on loan type and lender policies. Interest rates are not dictated by the government but rather are influenced by market conditions and lender decisions. Additionally, while collaboration with banks may be a component of funding processes, there is no explicit requirement for minimum funding from state banks across all lending scenarios.