1 Hour California-DFPI SAFE 2026 State Law Course

This course on California's laws and regulations is intended for California MLOs, principals, third parties, and others who must complete eight (8) hours of NMLS-approved CE annually, to consist of: 

3 Hours of Federal Law; 

2 Hours of Ethics; 

2 Hours of Non-Traditional Mortgage Lending; plus 

1 Hour of State-Specific Education (referred to as an elective). 

This course satisfies the 1 Hour State Elective requirement fulfilling the California regulatory mandate prior to license renewal. We will review key aspects of the state's regulatory structure governing MLOs including the relevant departmental authorities. Our primary focus, however, will be on concepts related to agency relationships, fiduciary duties, and the legal responsibilities promulgated under the California Civil Code. 

Module 1: 

In the first module of class, we will explore the regulatory structure, laws, and regulations governing California mortgage loan origination. This includes: 

The Role of the Department of Financial Protection and Innovation (DFPI) 

The Role of the Department of Real Estate (DRE) 

The California Financing Law and the California Financial Code 

The California Residential Mortgage Lending Act (CRMLA)  

The California Homeowner Bill of Rights 

Module 2: 

In the second module of class, we will cover the concept of agency relationships in relation to the California Civil Code along with a discussion on how California law allows delegation and termination of agency. This will be followed by an explanation of more detailed concepts involving agency, such as expressed authority, implied authority, ratification, and estoppel. To conclude the second module, we will go over the responsibilities of the principal when dealing with third parties, plus regulatory news about two recent court cases. In this last section we will provide synopses of several court cases from the CA-DFPI illustrating the potential legal and financial implications for mortgage companies who charge excess interest on loans or who fail to protect consumer data in their cybersecurity practices. 

To promote comprehension, students will complete a 5-question quiz and short activity after each module. A 15-question final exam will wrap up the course.