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HomeFinancial CodeDiv. 20Ch. 2§ 50123 Residential Mortgage Lender License Surrender

§ 50123 Residential Mortgage Lender License Surrender

Financial Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 50123 Residential Mortgage Lender License Surrender

Key Takeaways

  • •A mortgage lender's license stays valid until it's taken away, given up, or canceled.
  • •If a lender wants to stop doing business, they must tell the commissioner in writing and give back their license.
  • •The lender must also provide a plan to close their business, including a review by an accountant.
  • •A lender can't just switch to a real estate license to keep doing mortgage work unless they've had their mortgage license for at least 5 years.

Example

A small mortgage company decides to close down because business is slow.

The company must tell the state in writing, return their license, and show a plan for shutting down properly. They can't just start working under a real estate license unless they've been in the mortgage business for 5 years.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 50123 Residential Mortgage Lender License Surrender

(a) A residential mortgage lender license shall remain in effect until suspended, surrendered, or revoked. (b) A residential mortgage lender licensee that ceases to engage in the business regulated by this division and desires to no longer be licensed shall inform the commissioner in writing and, at that time, surrender the license and all other indicia of licensure to the commissioner. The licensee shall file a plan for the withdrawal from regulated business, and the plan shall include a timetable for the disposition of the business. The plan shall also include a closing audit, review, or other agreed upon procedures performed by an independent certified public accountant prescribed by rule or order of the commissioner. Upon receipt of the written notice and plan, the commissioner shall review the plan and, if satisfactory to the commissioner, shall accept the surrender of the license. A license is not surrendered until its tender is accepted in writing by the commissioner after a review, and a finding has been made on the licensee’s plan required to be filed by this section, and a determination has been made that there is no violation of this law. (c) A residential mortgage lender or servicer licensee may not surrender its license under this division and, under the authority of a real estate license, subsequently engage in residential mortgage lending or servicing activities that are subject to this division, unless the licensee has been licensed under this division for a period of five years or more. (Amended by Stats. 2009, Ch. 160, Sec. 53. (SB 36) Effective October 11, 2009.)

Last verified: January 23, 2026

Key Terms

real estatecommissionmortgageterminationlicenseeffective octoberdispositionviolation

Related Statutes

  • § 50120 Residential Mortgage Lender Licensing
  • § 50125 License Refusal Grounds
  • § 28110 Electronic License Records Acceptance
  • § 50121 Residential Mortgage Lender Licensing
  • § 50126 Application Denial Grounds

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Financial Code. Section 50123.
View Official Source