We are a small bank in Idaho that has no physical presence in California. However, we were approached by a borrower who wants to purchase a home in California. Are there any prohibitions from out of state banks doing mortgage loans in California? Any licensing requirement, etc?

Any help would be appriciated.

We are located in Michigan, small bank as well, and have done mortgage loans in Arizona, Florida, Georgia, and South Carolina. They were all loans sold to Freddie, we just had to make sure we had the correct security instrument for the particular state, and the titlework was done per state. Here in Michigan we use title companies, I believe at least one of the others went through attorneys. We had no issues that I am aware of.