California Form RE 891 is the Mortgage Loan Activity Report (Threshold Notification/Annual Report) that real estate brokers file with the California Department of Real Estate when they negotiate, arrange, or service certain non-institutional mortgage loans. The form tells the DRE how much loan activity a broker handled, whether trust funds were involved, and whether the broker has crossed the “threshold broker” line set by Business and Professions Code §10232.
Filing late or wrong is not a small problem. The DRE can fine a broker up to $50 per day, capped at $10,000, and serious errors can lead to license suspension. The DRE reports that a meaningful share of RE 891 filings each year are flagged for missing trust fund data or incorrect loan counts, which is why this guide walks you through every box in plain English.
Here is what you will learn in this article:
- 📋 What Form RE 891 is, who must file it, and the legal trigger that pulls a broker in
- 🗂️ The exact documents, numbers, and records to gather before you open the form
- ✍️ A line-by-line walkthrough of every field, with sample answers and edge cases
- 👥 Three full filled-in examples using real-world broker scenarios
- ⚠️ The most common mistakes, the penalties they cause, and how to file cleanly the first time
What Form RE 891 Is and Who Must File It
Form RE 891 is the Mortgage Loan Activity Report, sometimes called the Threshold Notification or the Annual Report of Threshold Activity. The current version is the RE 891 (Rev. 1/24) posted on the DRE forms page, and that revision date is printed in the bottom-left corner of the PDF. Always confirm the revision date before you start because the DRE rejects outdated form versions even when the data is correct.
The form exists because California regulates brokers who arrange private money loans under Business and Professions Code §10232. A broker becomes a “threshold broker” once, in any 12-month period, the broker negotiates 10 or more loans or $1,000,000 or more in total loan principal that fall under §10240 (consumer loans) or §10245 (business loans). Crossing that line triggers two duties: an immediate threshold notification within 30 days and an annual report each year after.
The agency that receives the form is the California Department of Real Estate, Mortgage Loan Activities Unit, based in Sacramento. The statute that backs the filing is B&P Code §10232.2, which sets both the duty to file and the late penalty. The companion regulation is 10 CCR §2846.5, which explains how to count loans for threshold purposes.
The filer is always the responsible broker, not the salesperson. For a sole-proprietor broker, that is the natural person whose name is on the license. For a corporate broker, the form is filed by the designated officer under B&P Code §10211. Even a broker with zero qualifying activity must file a “no activity” report once they have ever crossed the threshold, until the DRE removes them from the threshold list.
A common misconception is that institutional lenders (banks, credit unions) need to file. They do not, because §10232 carves them out. Another misconception is that DRE inspections only happen for big shops; in fact, the DRE pulls audit samples from RE 891 filings of all sizes.
Before You Start: Documents and Information You Need
Pulling RE 891 together at the last minute is the single biggest reason brokers file wrong. Build a pre-filing checklist at the start of each fiscal year so the numbers are ready when the form opens. Below is the minimum you need on your desk before you type a single character into the form.
- Your DRE broker license number. This eight-digit number is on your wall license. If you enter the wrong number, the DRE may post your filing to the wrong file, and the system will list you as non-filed.
- Designated officer information (corporate brokers only). You need the officer’s name, license number, and title. Without it, a corporate filing is treated as unsigned.
- Fiscal year start and end dates. Most brokers use a calendar year, but partnerships and S-corps often use a different fiscal year. The wrong dates here change every loan count downstream.
- Loan log for the entire reporting period. This is the master spreadsheet of every loan negotiated, arranged, or serviced, with date, principal amount, lender, borrower, and lien position. Missing one loan can drop you below threshold on paper while you are still legally above it.
- Trust fund bank statements and reconciliations. You need every monthly statement and the DRE-required three-way reconciliation for the trust account. The form asks for the highest balance during the year.
- Multi-lender transaction list. Loans funded by more than one lender under §10238 are reported separately. If you mix them with single-lender loans, the totals will not tie.
- Default and foreclosure log. The form asks how many loans went 30, 60, and 90+ days late, and how many proceeded to foreclosure. A clean servicing log makes this a five-minute fill.
- Advance fee trust account records. If you collect advance fees under §10146, you need the separate trust account statements and the accountant’s review report.
- Prior year RE 891. Keep last year’s form open in a second window. The DRE checks year-over-year jumps; an unexplained drop or spike triggers a follow-up letter.
- Independent accountant’s review report (if applicable). Brokers who service loans for others and meet the size tests under §10232.2(a) must attach a CPA-prepared review. No CPA report means a rejected filing.
If even one of these items is missing on filing day, stop and gather it. A correctly filed RE 891 takes about an hour; a sloppy filing can take months to clean up after a DRE audit letter.
Where to Get the Form and How to Access It
The official, current Form RE 891 lives on the DRE Mortgage Forms page. Download the fillable PDF directly; do not use third-party copies because some still circulate the older Rev. 10/19 layout, which the DRE will reject.
You can also access the form through the DRE eLicensing portal once you sign in with your license number and password. Inside eLicensing, the form is found under Mortgage Loan Activities → File Annual/Threshold Report, and the system pre-fills your name, license number, and main office address from your license file.
For brokers without internet access, the DRE will mail a paper packet on request. Call the DRE Mortgage Loan Activities Unit at (916) 576-8543 and ask for the RE 891 packet, the RE 853 (trust fund schedule), and the RE 854 (multi-lender schedule) if either applies. Allow 7–10 business days for mail delivery.
A common misconception is that you can scan an old form, write the new year on top, and submit it. The DRE compares the revision footer to its current accepted list, and outdated revisions are returned unfiled, which can push you past the deadline and into penalty territory.
Step-by-Step: How to Fill Out Form RE 891 Line by Line
Form RE 891 has four pages and roughly twenty numbered fields, plus the signature block. Work top-to-bottom and do not skip optional boxes; the DRE treats blank fields as “not answered,” not as “zero.” Below is every field with a plain-English explanation, sample entry, edge case, common mistake, and a misconception to avoid.
Page 1, Box 1: Reporting Period
This box asks for the fiscal year start and end dates that the report covers.
Enter the dates in MM/DD/YYYY format. Use the fiscal year shown on your federal tax return, not the calendar year unless they match.
For example, Maria Lopez, a sole-proprietor broker, writes 01/01/2025 in the “From” box and 12/31/2025 in the “To” box.
The most common edge case is a short fiscal year caused by a mid-year corporate reorganization. If your fiscal year is less than 12 months, write the actual short period and attach a one-page note explaining the change.
A common mistake is entering the filing date instead of the reporting period. The DRE will then count the loans against the wrong year, and your threshold math will look wrong on the next audit.
A misconception is that the form covers a rolling 12 months. It does not — it covers your fiscal year, fixed and reported the same way each year.
Page 1, Box 2: Broker Name (Individual or Corporate)
This box asks for the legal name on your DRE license.
Type the name exactly as it appears on the license, including punctuation and any “Inc.” or “LLC” suffix. Do not use a DBA here; the DBA goes in Box 4.
For example, Carlos Rivera Mortgage Group, Inc. is the corporate broker name typed exactly as licensed.
The edge case is a recent name change. If your legal name has changed and you have not yet filed an RE 204 amendment, file the RE 204 first; otherwise the RE 891 will not match the DRE record.
A common mistake is using your personal name when you are licensed as a corporation. The DRE treats this as filing by the wrong entity, and the corporate filing is then missing.
A misconception is that small spelling differences are harmless. They are not — automated matching at the DRE flags any name mismatch for human review, which delays processing by weeks.
Page 1, Box 3: DRE Broker License Number
This box asks for your eight-digit DRE broker license ID.
Type the number with no dashes, no spaces, and no leading “DRE.” Just the digits.
For example, Janet Kim, a corporate broker’s designated officer, enters 01234567 in Box 3.
The edge case is a license recently renewed under a new ID. If your ID changed because you upgraded from salesperson to broker, use the new broker ID, not the old salesperson ID.
A common mistake is putting the salesperson license number of the designated officer instead of the broker license number of the corporation. The corporate filing is then orphaned in the DRE system.
A misconception is that you can leave this blank if your name is unique. The DRE indexes filings by license number, not by name, so a missing number means a missing filing.
Page 1, Box 4: Business Name and DBA
This box asks for any fictitious business name you operate under.
Type the DBA exactly as it appears on your DRE-approved fictitious name filing. If you do not use a DBA, write N/A — do not leave it blank.
For example, Maria Lopez writes “MLO Home Loans” in Box 4 because that is her DRE-approved DBA.
The edge case is a DBA approved by the county but not yet by DRE. The DRE only recognizes DBAs filed on Form RE 282; using a non-approved DBA on RE 891 is a separate violation.
A common mistake is using a marketing name never registered with the DRE. The form is then filed under a name the DRE has no record of, and you can be cited for unauthorized use of a fictitious name.
A misconception is that DBAs are optional information. They are not — every name you do business under must be disclosed.
Page 1, Box 5: Main Office Address
This box asks for the physical address of your main licensed office.
Enter street, city, state, and ZIP. Do not use a P.O. Box here; the DRE requires a physical location for the main office.
For example, Carlos Rivera Mortgage Group, Inc. enters 1450 Market Street, Suite 300, San Francisco, CA 94103.
The edge case is a home-office broker. A home address is acceptable as long as it is the same address listed on the broker’s license; if it differs, file an RE 204 first.
A common mistake is entering a mailing address when the main office is elsewhere. The DRE may then mail audit notices to the wrong location, and you can miss critical deadlines.
A misconception is that branch addresses go here. They do not — branches are listed separately on the RE 203 and are not repeated on RE 891.
Page 1, Box 6: Designated Officer (Corporate Brokers Only)
This box asks for the name and license number of the designated officer.
Sole proprietors leave this blank. Corporate filers enter the officer’s full legal name and broker license number.
For example, Janet Kim, Designated Officer, License #01890123 is the entry for Carlos Rivera Mortgage Group, Inc.
The edge case is a mid-year change of designated officer. Enter the officer in place at the end of the fiscal year, and attach a memo listing prior officers and dates.
A common mistake is leaving this blank when the broker is a corporation. The DRE then treats the form as unsigned at the entity level.
A misconception is that any officer of the corporation can sign. Only the designated officer named with the DRE has authority to sign RE 891.
Page 2, Box 7: Number of Loans Negotiated or Arranged During Period
This box asks how many loans you negotiated or arranged during the reporting period under §§10240 or 10245.
Count each closed loan once. Refinances of your own prior loans count as a new loan. Do not count loans that fell through.
For example, Maria Lopez negotiated 14 closed loans during 2025 and writes 14 in Box 7.
The edge case is a table-funded loan where you originated and an institutional lender funded at close. These count if you negotiated terms; they do not count if you only referred the borrower.
A common mistake is counting applications taken rather than loans closed. Counting applications inflates the number and can falsely push a broker into threshold status.
A misconception is that loans you sold to investors after closing do not count. They do — origination counts at the moment of closing, regardless of later sale.
Page 2, Box 8: Total Principal Amount of Loans Negotiated or Arranged
This box asks for the total dollar amount of loan principal negotiated during the period.
Sum the original principal balances at closing. Round to the nearest dollar; no cents.
For example, Maria Lopez’s 14 loans totaled $4,235,000, which she enters in Box 8.
The edge case is construction loans with future advances. Use the maximum committed amount, not just the initial draw, because the threshold rule looks at total commitments.
A common mistake is using outstanding balance instead of original principal. This understates volume and can hide threshold status from the DRE.
A misconception is that adjustments for points or fees should be netted out. They should not — the gross loan amount is what counts under §10232.
Page 2, Box 9: Number of Loans Serviced at Period End
This box asks how many loans were under your servicing on the last day of the period.
Count loans where you collect payments, send statements, or hold trust funds for investors at fiscal year end.
For example, Carlos Rivera Mortgage Group, Inc. was servicing 87 loans on 12/31/2025 and writes 87 in Box 9.
The edge case is sub-servicing arrangements. If you sub-service for another broker, count the loans here; if another broker sub-services for you, you still count them here because you are the broker of record.
A common mistake is counting loans paid off mid-month that closed before period end. Only loans actively being serviced on the last day count.
A misconception is that servicing for institutional lenders is excluded. It is not — if you are the servicer of record, count the loan.
Page 2, Box 10: Total Principal Balance of Loans Serviced at Period End
This box asks for the total unpaid principal on serviced loans at fiscal year end.
Sum the unpaid principal balances as of the last day of the period.
For example, Carlos Rivera’s 87 serviced loans had an unpaid principal of $22,640,000 at year end.
The edge case is interest-only loans. The unpaid principal usually equals the original principal because no amortization has occurred.
A common mistake is reporting original principal instead of unpaid principal. The two are different, and the DRE compares this to Box 8 historicals.
A misconception is that escrow balances should be added. They should not — only loan principal goes here; trust funds are reported separately.
Page 2, Box 11: Number of Multi-Lender Transactions
This box asks how many loans during the period had more than one lender under §10238.
Count fractionalized loans where two or more investors hold beneficial interests. Attach the RE 854 schedule if any.
For example, Hard-money broker Aisha Patel arranged 6 multi-lender loans in 2025 and writes 6 in Box 11.
The edge case is husband-wife joint lenders. Spouses holding title together count as one lender for §10238 purposes if they hold as community property.
A common mistake is counting any loan with two signatures as multi-lender. Co-borrowers do not make a loan multi-lender; co-lenders do.
A misconception is that multi-lender loans only count if you used the §10238 process. Any fractionalized loan counts, even if you mishandled the process — and mishandling is itself a separate violation.
Page 2, Box 12: Highest Trust Fund Balance During Period
This box asks for the highest single-day balance in your broker trust account during the reporting period.
Pull the highest end-of-day balance from your monthly bank statements and trust ledger. Use the larger of the two if they disagree.
For example, Maria Lopez’s trust account peaked at $312,450 on 06/14/2025, which she enters in Box 12.
The edge case is multiple trust accounts. Sum the highest balance across all accounts on the same date; do not average.
A common mistake is using the year-end balance. The form asks for the peak, not the closing balance, and the DRE uses this to gauge audit risk.
A misconception is that this is just for information. It is not — a high balance with low loan volume can trigger a trust fund audit under 10 CCR §2831.
Page 3, Box 13: Loans 30–59 Days Delinquent at Period End
This box asks how many serviced loans were 30 to 59 days past due on the last day of the period.
Count from the contractual due date, not the grace period end. A loan due 11/01 and unpaid on 12/31 is 60 days late, not 30.
For example, Carlos Rivera had 4 loans in the 30–59 day bucket at year end and writes 4 in Box 13.
The edge case is loans in modification. A loan under a written forbearance is still reported by actual delinquency days, with a footnote.
A common mistake is using the lender’s definition of delinquency. Use the contract definition, which is what the DRE measures against.
A misconception is that small delinquency numbers do not matter. They do — sudden jumps trigger a portfolio review.
Page 3, Box 14: Loans 60–89 Days Delinquent
Same instructions as Box 13, but for the 60–89 day bucket.
Enter the count of loans 60 to 89 days past due at period end.
For example, Carlos Rivera reports 2 in Box 14.
The edge case is the rolling delinquency loan that bounces between buckets each month. Report it in whichever bucket fits at period end.
A common mistake is double-counting a loan in both Box 13 and Box 14. Each loan goes in one bucket only.
A misconception is that partial payments cure delinquency. They generally do not unless the contract says so.
Page 3, Box 15: Loans 90+ Days Delinquent or in Foreclosure
This box asks how many serviced loans were 90 or more days past due or in active foreclosure at period end.
Count both 90+ delinquencies and any loan with a recorded Notice of Default.
For example, Aisha Patel reports 3 in Box 15, including 1 with a recorded NOD.
The edge case is a loan paid off through trustee’s sale mid-period. It is not in this bucket at year end because it has been resolved.
A common mistake is excluding bankruptcy loans. They count if delinquent, with a note explaining the bankruptcy stay.
A misconception is that foreclosures are reported elsewhere. The annual count goes here; only certain investor disclosures go on separate forms.
Page 3, Box 16: Number of Foreclosures Completed During Period
This box asks how many serviced loans went all the way through trustee’s sale during the period.
Count completed sales only. Cancelled or postponed foreclosures do not count.
For example, Aisha Patel completed 1 foreclosure in 2025 and writes 1 in Box 16.
The edge case is a judicial foreclosure, which is rare in California but possible. Count it the same way.
A common mistake is counting NODs filed as completed foreclosures. They are not — only the trustee’s sale completes the foreclosure.
A misconception is that REO sales after foreclosure also count. They do not — the foreclosure ends at the trustee’s sale.
Page 3, Box 17: Advance Fees Collected
This box asks for the total advance fees collected during the period under §10146.
Sum every dollar collected before services were rendered. Round to the nearest dollar.
For example, Maria Lopez collected $0 because she does not take advance fees and writes 0 in Box 17.
The edge case is fees held in trust pending close. They count when collected, not when earned.
A common mistake is netting refunded advance fees against gross. Report gross collected; refunds are tracked separately in records.
A misconception is that application fees are not advance fees. They are if collected before services and not earned upon receipt.
Page 3, Box 18: Independent Accountant’s Review Attached?
This box asks whether you have attached a CPA review as required by §10232.2(a).
Check Yes or No. If you meet the size triggers (servicing 50+ investor loans or holding $500,000+ in trust), Yes is required.
For example, Carlos Rivera checks Yes and attaches the CPA review prepared by Smith & Tran, CPAs.
The edge case is a broker just below the size trigger. They check No, but should keep internal records ready in case they cross mid-year.
A common mistake is checking Yes without attaching the report. The DRE then issues a deficiency notice and starts the late clock.
A misconception is that a tax return substitutes for a review. It does not — the review must follow AICPA SSARS standards.
Page 4, Box 19: Threshold Status Confirmation
This box asks the broker to confirm whether they are a threshold broker at the end of the period.
Check the box that matches your status. Once you become a threshold broker, you remain one until the DRE removes you in writing.
For example, Maria Lopez checks “Yes, I am a threshold broker” because she crossed 10 loans in 2024.
The edge case is a first-time threshold filer who must also file a separate RE 853 threshold notification within 30 days of crossing.
A common mistake is checking “No” because activity dropped below threshold this year. Status does not auto-reset; you stay threshold until the DRE says otherwise.
A misconception is that a single low-volume year ends the duty. It does not — only a written DRE removal does.
Page 4, Box 20: Signature, Title, and Date
This box is the certification, signature, title, and date.
The responsible broker (or designated officer) signs in ink for paper, or with eLicensing’s e-signature for online. Print name, title, and date below.
For example, Janet Kim, Designated Officer, signs and dates 01/22/2026 for Carlos Rivera Mortgage Group, Inc.
The edge case is a broker who is out of state on the deadline. eLicensing accepts e-signatures from anywhere; paper requires a wet signature.
A common mistake is having a salesperson or office manager sign. That filing is treated as unsigned and rejected.
A misconception is that a typed name counts as a signature on paper. It does not — paper requires ink.
Three Filled-Out Examples Using Real Scenarios
The next three tables walk three different brokers through the form from top to bottom. Each shows what they would actually enter in the most important fields.
Scenario 1 — Maria Lopez, sole-proprietor broker who just crossed threshold
| Form Section | What Maria Enters |
|---|---|
| Box 1 — Reporting Period | 01/01/2025 to 12/31/2025 |
| Box 2 — Broker Name | Maria Lopez |
| Box 3 — DRE License # | 01567890 |
| Box 4 — DBA | MLO Home Loans |
| Box 5 — Main Office | 2200 Mission Blvd, Hayward, CA 94541 |
| Box 7 — Loans Negotiated | 14 |
| Box 8 — Total Principal | $4,235,000 |
| Box 12 — Highest Trust Balance | $312,450 |
| Box 18 — CPA Review Attached | No |
| Box 19 — Threshold Status | Yes — first year |
| Box 20 — Signature | Maria Lopez, Broker, 02/03/2026 |
Scenario 2 — Carlos Rivera Mortgage Group, Inc., mid-size hard-money broker
| Form Section | What Carlos’s Designated Officer Enters |
|---|---|
| Box 1 — Reporting Period | 01/01/2025 to 12/31/2025 |
| Box 2 — Broker Name | Carlos Rivera Mortgage Group, Inc. |
| Box 3 — DRE License # | 01234567 |
| Box 6 — Designated Officer | Janet Kim, License #01890123 |
| Box 7 — Loans Negotiated | 62 |
| Box 8 — Total Principal | $28,910,000 |
| Box 9 — Loans Serviced | 87 |
| Box 10 — Serviced Principal | $22,640,000 |
| Box 11 — Multi-Lender Loans | 9 |
| Box 12 — Highest Trust Balance | $1,985,000 |
| Box 18 — CPA Review Attached | Yes — Smith & Tran, CPAs |
| Box 20 — Signature | Janet Kim, Designated Officer, 01/22/2026 |
Scenario 3 — Aisha Patel, threshold broker filing a “no activity” year
| Form Section | What Aisha Enters |
|---|---|
| Box 1 — Reporting Period | 01/01/2025 to 12/31/2025 |
| Box 2 — Broker Name | Aisha Patel |
| Box 3 — DRE License # | 01445566 |
| Box 4 — DBA | N/A |
| Box 7 — Loans Negotiated | 0 |
| Box 8 — Total Principal | $0 |
| Box 9 — Loans Serviced | 5 (legacy portfolio) |
| Box 10 — Serviced Principal | $1,180,000 |
| Box 15 — 90+ Day Delinquent | 3 |
| Box 16 — Foreclosures Completed | 1 |
| Box 19 — Threshold Status | Yes — still on list |
| Box 20 — Signature | Aisha Patel, Broker, 01/30/2026 |
Other brokers across this article include Marcus Lee, an employer-broker filing his first threshold notification after one big commercial loan, and Janet Kim, the designated officer above who also handles compliance for two affiliated entities.
How to File the Completed Form
The DRE accepts RE 891 through three channels, and each one has its own workflow, fee structure, and proof of filing. Pick the channel that fits your office, but know all three because outages happen.
Online via eLicensing. Sign in at the DRE eLicensing portal and choose Mortgage Loan Activities. There is no filing fee for RE 891 itself. Payment is not collected because the report is a compliance filing, not an application. Processing time is immediate — you receive a confirmation number on screen and a confirmation email within minutes. Save both as your proof of filing.
By mail. Print and sign the completed form, attach any required schedules (RE 853 for new threshold, RE 854 for multi-lender, CPA review if applicable), and mail to: California Department of Real Estate, Mortgage Loan Activities Unit, P.O. Box 137007, Sacramento, CA 95813-7007. There is no fee. Use certified mail with return receipt so you have proof of mailing date; processing takes 4–6 weeks.
In person. You can drop off the form at the DRE Sacramento office at 1651 Exposition Boulevard, Sacramento, CA 95815. Bring two copies; the clerk stamps one as your proof. There is no fee. In-person filings are processed in 2–3 weeks.
The deadline is the 30th day after your fiscal year ends, per §10232.2. Most calendar-year brokers file by January 30. Late penalty is $50 per day, capped at $10,000. The DRE accepts no payment method for the report itself; penalties for late filing are billed separately and payable by check or eCheck through eLicensing.
What Happens After You File
Once the DRE receives your RE 891, it goes through a three-step review. First, the system checks that the form is the current revision and that the license number matches an active broker. Second, a compliance analyst compares this year’s totals against last year’s; sudden jumps in trust balance, multi-lender count, or delinquency draw a follow-up letter. Third, a sample of filings is pulled for a desk audit each year.
If the form is accepted, you will receive a filing confirmation letter within 30 days for paper, or an immediate email for eLicensing. Keep this for at least four years; the DRE relies on filer-side proof during audits.
If the form is deficient, the DRE sends a Notice of Deficiency with a 30-day cure window. Common deficiencies include missing CPA review, mismatched name, or wrong revision year. Curing within 30 days avoids late penalties, but missing the cure window restarts the clock.
A misconception is that no news means a clean filing. It does not — always confirm with a status check in eLicensing two weeks after submission, because lost-mail filings happen.
Mistakes to Avoid When Filling Out the Form
Below are the most frequent RE 891 errors and the consequences of each. Each one has caused a real DRE penalty in the last five years.
- Filing an outdated revision. The DRE rejects it, the clock keeps running, and late penalties accrue.
- Wrong fiscal year dates. Throws off threshold math and triggers a desk audit.
- Counting applications as closed loans. Inflates volume and can falsely drag you into threshold status.
- Using outstanding balance instead of original principal in Box 8. Hides true volume and looks like under-reporting.
- Forgetting to attach the CPA review when required. Automatic deficiency notice and penalty exposure.
- Leaving Box 4 blank when no DBA exists. Treated as “not answered,” not as “none.”
- Salesperson signing for a corporate broker. Filing is treated as unsigned.
- Using a P.O. Box in Box 5. Main office must be a physical address.
- Year-end balance instead of peak in Box 12. Misstates trust risk; auditors flag the gap.
- Failing to file a “no activity” report after threshold status. Counts as non-filing and accrues full $50/day penalty.
- Mailing without certified return receipt. No proof of date if the form is lost.
- Mixing single-lender and multi-lender loan counts. Totals will not tie and the DRE issues a deficiency.
Do’s and Don’ts
A short list of habits separates clean filers from chronic ones. Each do or don’t below ties to a specific consequence under §10232.2 or 10 CCR §2846.5.
Do:
- Download the form fresh each year, because the DRE updates revisions quietly.
- Keep a live loan log throughout the year, so January is data entry, not investigation.
- Reconcile your trust account monthly, so Box 12 is a five-second lookup.
- File through eLicensing when possible, because the timestamp is automatic.
- Cross-check this year’s numbers against last year’s before signing.
- Save the confirmation email and any cover letters for at least four years.
Don’t:
- Don’t sign blank forms for a staffer to complete later, because you own every number on the page.
- Don’t round principal to the nearest thousand, because the DRE expects exact dollars.
- Don’t skip Box 18 if you are close to the size trigger, because borderline filings get reviewed.
- Don’t assume threshold status ends automatically, because only DRE removal ends it.
- Don’t file by fax — the DRE no longer accepts faxed RE 891.
- Don’t use a generic CPA letter; the review must follow SSARS standards specific to broker activity.
Pros and Cons of Filing on Your Own vs. With Help
Many brokers file RE 891 themselves, but as servicing volume grows, outside help can pay for itself.
Pros of filing yourself:
- Free, with no consultant or CPA fee for small filers.
- You know your data better than anyone outside the firm.
- eLicensing makes the mechanical part fast.
- You build internal compliance muscle for future audits.
- You avoid handing sensitive borrower data to a third party.
Cons of filing yourself:
- Easy to misclassify multi-lender or threshold status without training.
- You may miss the CPA review trigger and not realize it.
- Trust fund peak balance is often pulled wrong without a controller.
- Late filings cost $50/day, fast eclipsing any consultant fee.
- A bad RE 891 can trigger a multi-week desk audit you must staff yourself.
FAQs
Is Form RE 891 the same as the Threshold Notification?
No. RE 891 is the annual report. The first-time threshold notification is filed on Form RE 853 within 30 days of crossing the threshold, and RE 891 follows for every year after.
Do I need to file if I had zero loans this year?
Yes. Once you are a threshold broker, you keep filing every year, even with zero activity, until the DRE formally removes you from the threshold list.
Can a salesperson sign Form RE 891?
No. Only the responsible broker (or, for corporations, the designated officer) can sign. A salesperson signature makes the filing invalid.
Is there a filing fee?
No. Filing RE 891 itself is free. Late penalties are separate at $50 per day up to $10,000.
Do I write my fiscal year or the calendar year in Box 1?
Yes, write your fiscal year dates exactly. Calendar year is correct only if your fiscal year is the calendar year.
Should Box 8 use original or current principal?
Yes, use the original principal at closing. Current balance goes in Box 10 only.
Do refinances count in Box 7?
Yes. Each refinance is a separate originated loan and counts the same as a new loan.
What if my fiscal year is shorter than 12 months?
Yes, report the actual short period in Box 1 and attach a one-page note explaining why (corporate change, dissolution, etc.).
Do institutional bank loans I brokered count?
No. Loans funded by exempt institutional lenders under §10232 are excluded from threshold counting and from Boxes 7 and 8.
Can I file by fax?
No. The DRE no longer accepts faxed RE 891 filings. Use eLicensing, mail, or in-person delivery.
Do co-borrowers create a multi-lender loan?
No. Multiple borrowers do not affect Box 11. Only multiple lenders under §10238 make a loan multi-lender.
Is a CPA tax return enough for Box 18?
No. A SSARS-compliant review report is required when triggers are met. A tax return does not satisfy the rule.
What happens if I file 10 days late?
Yes, you owe a penalty — $50 × 10 = $500, billed separately. Repeated late filings can lead to license discipline.
Can I correct an RE 891 after filing?
Yes. File an amended RE 891, mark “Amended” at the top, and submit through the same channel. Do this before the DRE issues a deficiency notice.
Do advance fees on canceled deals count in Box 17?
Yes. Box 17 reports gross fees collected, regardless of whether the deal closed or fees were later refunded.
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