What is the required net worth for a licensed mortgage lender or mortgage servicer?

The required net worth for a licensed mortgage lender or mortgage servicer in California is indeed set at $250,000. This requirement is designed to ensure that the lending or servicing entity has sufficient financial stability to operate responsibly within the mortgage lending industry. A net worth of this amount helps to provide a cushion against potential operational risks, protects consumers, and meets regulatory standards aimed at maintaining industry integrity. Having a substantial net worth is crucial for lenders and servicers, as it reflects their capacity to handle liabilities and protects against insolvency in challenging financial circumstances.