California recently amended its Finance Lender Law and Residential Mortgage Lending Act MLO licensing exemptions. Pursuant to the amendments, an employee of a federal, state, or local government agency or housing finance agency will be exempt from MLO licensing so long as the employee is acting only as a loan originator pursuant to his or her official duties as an employee. Employees of bona fide nonprofit organizations also will be exempt from MLO licensing. This exemption is available for those employees who exclusively originate residential mortgage loans with terms that are favorable to the borrower. In order for employees to qualify for this exemption, the bona fide nonprofit organization must register with the Department of Corporations on a yearly basis. These amendments take effect January 1, 2013.