montana – mortgage broker and loan originator licensing

Transcription

ALABAMA – MORTGAGE BROKER AND LOAN ORIGINATOR LICENSING
Licensing Law
License
Required?
Alabama
Mortgage Brokers
Licensing Act,
Ala. Code §5-25-1
et seq.1
Yes, if the person
directly or indirectly
solicits, processes,
places or negotiates
mortgage loans for a
borrower. Mortgage
loans include 1st or
subordinate loans on
1-4 family owneroccupied dwellings
in Alabama, if
occupied as principal
residence of the
borrower.
Originator
Licensing and
Rules
N/A
Experience
Required for
Brokers
No.
Education
Required
12 hours of
approved
continuing
education in
primary and
subordinate
financing
transactions
(to be
completed
by officers
and
principals of
the licensee
who are
actively
involved in
daily
operations of
the licensee).
Surety
Bond
Required
for
Brokers
No.
Minimum Net
Worth
Required?
Financial
statement
submitted with
license application
must demonstrate
minimum tangible
net worth of
$25,000.
Financial
statement must be
not more than 90
days old and
prepared by a CPA
(per the license
application form,
3/03 version).
In-State Office
Required?
(Bricks &
Mortar)
Yes. All licensed
mortgage brokers
must maintain a
principal place of
business in
Alabama.
Duration of
License &
License
Renewal
Dates
Licenses are
annual and
expire 12/31.
License Related
Fees
$100 license
investigation fee;
$500 initial license
fee. Annual
license renewal
fee = $500.2
There is a 10%
penalty for late
renewals.
Comments
&
Other
Licensed mortgage brokers must
appoint a registered agent.
Application for license must include
resumes of principals/officers,
brokerage agreement to be used with
customers, letters of reference, and
general plan of business. Application
must be submitted on the
Department’s yellow form, NOT
photocopied form. Mortgage broker
licensees must notify regulator of
specified events including change of
address, filing of bankruptcy,
institution of license revocation
proceedings, or felony conviction of
its officers or directors (15 day
notice), change of principals or
directors (30 day notice). Banking
Department may examine licensees as
necessary, but at least every 24
months. Licensee pays the
examination fee. Civil penalty up to
$3,000 may be imposed for violation
of a Banking Department cease-anddesist order, or $15,000 if the
violations are “knowing.” Willful
violations of licensing law are
misdemeanors.
Regulatory Agency
Alabama State Banking
Department
Bureau of Loans
401 Adams Avenue
Suite 680
Montgomery AL 36130
(334) 242-3452
(334) 353-5961 (fax)
http://www.bank.state.al.us/
1 Those who make consumer loans from a principal place of business in Alabama are required to be licensed by the Banking Department under the Consumer Finance Law, Ala. Code §5-19-1 et seq.
2 Licensee may claim exemption from renewal fee if 50% or more of its loans are made to low and moderate income borrowers and licensee is not subject to enforcement action by any government agency.
all_states.DOC
Prepared by Buckley Kolar, LLP
May 2004
©All Rights Reserved
ALASKA – MORTGAGE BROKER AND LOAN ORIGINATOR LICENSING
Licensing Law
None
License
Required?
No
Originator Licensing
and Rules
N/A
Experience
Required for
Brokers
N/A
Education
Required
N/A
Surety
Bond
Required
for
Brokers
N/A
Minimum
Net Worth
Required?
In-State Office
Required?
(Bricks &
Mortar)
N/A
N/A
Duration of
License &
License
Renewal
Dates
N/A
Comments
&
Other
License Related
Fees
N/A
N/A
Regulatory Agency
N/A
all_states.DOC
May 2004
ARIZONA – MORTGAGE BROKER AND LOAN ORIGINATOR LICENSING
Licensing Law
License
Required?
Originator
Licensing and Rules
Mortgage Brokers
and Mortgage
Bankers Act, Ariz.
Rev. Stat. §6-901
et seq. See also
regulations of the
State Banking
Department, Ariz.
Admin. Code tit.
20 Art 9.
Yes, if the person
directly or
indirectly makes,
negotiates, or
offers to make or
negotiate a
mortgage loan, for
compensation.
Mortgage loans
include all loans
secured by
mortgages or
deeds of trust on
Arizona property,
not just residential
mortgage loans.
A licensee must appoint
a “responsible
individual” who is a
resident of Arizona with
the required experience.
The responsible
individual must be in
active management of
the licensee’s office.
Mortgage broker
licenses issued to
entities cover the
entity’s officers,
directors and
employees, but
independent contractors
are not considered
employees. Ariz. Rev.
Stat. §6-903 (E). Loan
originators are not
individually licensed but
a licensee may not hire
a person without
conducting a reasonable
background
investigation (the results
must be kept for at least
2 years).
3
Experience
Required for
Brokers
Three years
experience in
mortgage
brokerage,
lending or a
related
business, during
the 5 years
immediately
preceding the
application for
a mortgage
broker license.
Partial credit
toward
experience is
available if one
has experience
as member of
the bar,
paralegal, loan
underwriter,
real estate
broker, escrow
officer, and the
like.
Education
Required
24 hours of
classroom
education and
success on a test
administered by
the State Banking
Department.
Coursework must
include mortgage
law, negotiable
instruments,
mortgage broker
law, escrow agent
law,
recordkeeping
requirements,
principal and
agent law,
arithmetical
computations, real
estate lending
principles,
RESPA, TILA and
securities law.3
Surety
Bond
Required
for
Brokers
$10,000 for
brokers
whose
investors are
solely
“institutional
investors”
and $15,000
for others.
Ariz. Rev.
Stat. §6-903
(H).
Minimum
Net Worth
Required?
In-State Office
Required?
(Bricks &
Mortar)
Duration of
License &
License
Renewal Dates
No, but an
applicant for
a license
must submit
current
financial
statements
with the
application.
Yes; each licensee
must maintain a
principal place of
business in the
state. Ariz. Rev.
Stat. §6-904(F).
Licenses are
annual; license
year is October 1
through September
30. Licenses not
renewed by
October 31 expire.
License Related
Fees
Comments
&
Other
$800 application fee for
the 1st office and $250
for each additional
office, plus $29
fingerprint processing
fee for each set of
fingerprints submitted.
License renewals due
annually; renewal fee is
$250 if the broker
negotiates or closes 50
or fewer loans in the
preceding calendar
year,4 and $500
otherwise, plus $200 for
each branch.
Knowing failure to comply
with the Mortgage Brokers
and Mortgage Bankers Act
subjects a person to a $5,000
civil penalty. Notice of
change of a licensee’s office
location must be given to the
Banking Department within 5
days of the change; if the
responsible individual
changes, notice of the fact
must be given within 10 days.
A licensee has 90 days to
replace its responsible
individual. Mortgage broker
licenses are not transferable.
Regulatory Agency
Arizona State Banking
Department
2910 N. 44th Street
Suite 310
Phoenix AZ 85018
(602) 255-4421
(602) 381-1225 (fax)
http://www.azbanking.com/
The examination and course of study requirements can be waived for a person applying for a mortgage broker license who has been a licensee or a responsible person within the six months immediately prior to the submission of the application.
4 Loans included in the calculation of volume include all loans, not just Arizona loans, per Arizona Banking Department’s Substantive Policy Statement No. MB-4 (9/29/95).
all_states.DOC
May 2004
ARKANSAS – MORTGAGE BROKER AND LOAN ORIGINATOR LICENSING
Licensing Law
License
Required?
and Rules
Fair Mortgage
Lending Act, Ark.
Code Ann. §2339-501 et seq. See
also administrative
rules of the
Arkansas
Securities
Commissioner as
applicable to
mortgage broker
(effective 4/1/03).
Yes, if the person
directly or
indirectly does any
of the following
for compensation:
(1) accepts or
negotiates
mortgage loans;
(2) solicits or
offers to solicit
mortgage loans;
(3) negotiates the
terms or
conditions of
mortgage loans;
(4) issues loan
commitments or
rate lock
guarantees to
borrowers. Ark.
Code Ann. §2339-502.
Loan originators are
individually licensed by
the Arkansas Securities
Commissioner. Mortgage
brokers’ employees whose
duties are merely clerical
and administrative are not
required to be licensed. A
mortgage broker that
employs loan officers must
provide a list of the loan
officers to the Arkansas
Securities Department, and
ensure that each loan
officer is licensed. If a
loan officer’s employment
terminates, the employer
must notify the Securities
Department within 30
days.
Experience
Required for
Brokers
At least 3 years
of mortgage
lending
experience. (If
the applicant is
a corporation or
partnership, one
of its partners
or officers must
have the
required
experience.)
Education
Required
N/A
Surety
Bond
Required
for
Brokers
$50,000
Minimum
Net Worth
Required?
In-State Office
Required?
(Bricks &
Mortar)
$25,000
No
Duration of
License &
License
Renewal
Dates
Licenses are
renewed
annually within
120 days of the
licensee’s fiscal
year-end.
License Related
Fees
$750 nonrefundable license
application fee for
the main office,
plus $100 for each
branch office.
License renewal
fee is $350 for the
main office and
$100 for each
branch. (There is
a $50 per day late
fee for renewals
filed late, up to 30
days maximum;
after 30 days, the
unrenewed license
expires.)
Application for
loan officer
license requires
$50 fee and $50
annual renewal.
Change of control
application
requires payment
of a $100 fee
Comments
&
Other
Each branch must have a branch
manager; the branch manager is
responsible for the business conducted
at that location. Changes in branch
managers must be reported to the
Securities Commissioner within 30
days. Mortgage broker licenses are
not transferable. Other changes that
must be reported are changes in
address, location of records, and
change in control of the licensee.
Regulatory Agency
Arkansas Securities
Department
Heritage West Building
Suite 300
201 E. Markham
Little Rock AR 72201
(501) 324-9260
(501) 324-9268 (fax)
www.state.ar.us/arsec
all_states.DOC
May 2004
CALIFORNIA – MORTGAGE BROKER AND LOAN ORIGINATOR LICENSING (REAL ESTATE BROKER LAW)
Licensing Law5
License
Required?
and Rules
Real Estate Broker
Law, Cal. Bus. &
Prof. Code §10130
et seq. See also
regulations of the
Real Estate
Commissioner,
Cal. Code of
Regulations, Title
10, Chapter 6, Art.
16.
Yes, if the person
(1) brokers or
negotiates loans6
secured directly or
collaterally by
liens on real
property, or (2)
buys and sells
promissory notes
secured by real
estate. Cal. Bus.
& Prof. Code §§
10131 (d), (e).
Persons who negotiate
loans on behalf of licensed
real estate brokers (i.e.,
mortgage brokers licensed
under the real estate law)
must be individually
licensed as real estate
salespersons. Each real
estate broker licensee
(other than a sole
proprietor) must have a
“designated officer” who is
responsible for the
supervision and control of
the licensee’s business. A
designated officer must
have his or her own real
estate license.
Experience
Required for
Brokers
At least 2 years
of full-time
licensed salesperson
experience
within the 5
years prior to
applying for a
real estate
broker license.
Education7 or
equivalent
experience may
be substituted
for the 2 years’
experience.
Education
Required
Licensed real
estate brokers
must complete
45 hours of
continuing
education over
the 4-year
license period.
Surety
Bond
Required
for
Brokers
No
Minimum
Net Worth
Required?
In-State Office
Required?
(Bricks &
Mortar)
Duration of
License &
License
Renewal
Dates
No
Yes; a licensed
real estate broker
must maintain a
place of business
in California for
the transaction of
business. Cal.
Bus. & Prof. Code
§10162.
License period
is 4 years.
Renewals may
be filed 90
days before the
license expires.
License Related
Fees
$165 for a
corporate
applicant for a real
estate license.
$120 for a real
estate license
issued to an
individual. Late
renewal fee is
$248 for brokers
and $180 for
salespersons.
Comments
&
Other
If a real estate broker does business
using a fictitious or trade name, the
trade name must be filed with the
county clerk in the counties where the
name is used. Branch offices are
separately licensed. A person acting
as a real estate broker without a
license is subject to a fine up to
$10,000, imprisonment up to 6
months, or both. (The fine is up to
$50,000 if the offender is a
corporation.) Real estate broker
licenses are not transferable. Real
estate brokers must notify the
Commissioner of Real Estate within 5
days of employing any salesperson. If
the designated officer changes, the
real estate broker must file change
forms with the Department of Real
Estate.
Regulatory Agency
Department of Real Estate
2201 Broadway
P.O. Box 187000
Sacramento CA 95818(916) 227-0931
(916) 227-0777 (fax)
www.dre.ca.gov
5
The real estate law applies to those mortgage brokers who do not lend money, make the credit decision in a mortgage transaction or service mortgage loans.
The term “negotiation” excludes certain activities when performed by employees of a licensed real estate broker, including preparing ads for loan transactions, distributing circulars or flyers relating to loans, providing factual information about loans if the information is prepared
by the real estate broker/employer, entering information on application forms or into computer databases, and preparing and mailing verification of mortgage, employment, deposit and rent forms. These and other limited activities do not rise to the level of “negotiation” requiring a
license. See Cal. Code Reg. tit. 10 §2841.
7
Education in lieu of the required experience can include any of the following: (1) college graduation with A.A. degree plus completion of real estate courses and 1 year full-time employment as licensed California sales-person; (2) 4-year college degree + completion of 8 required
courses; or (3) admission to practice law in any state.
6
all_states.DOC
May 2004
COLORADO – MORTGAGE BROKER AND LOAN ORIGINATOR LICENSING
Licensing Law
None
License
Required?
No
and Rules
N/A
Experience
Required for
Brokers
N/A
Education
Required
N/A
Surety
Bond
Required
for
Brokers
N/A
Minimum
Net Worth
Required?
In-State Office
Required?
(Bricks &
Mortar)
N/A
N/A
Duration of
License &
License
Renewal
Dates
N/A
License Related
Fees
N/A
Comments
&
Other
Colorado has a mortgage broker law
that defines a mortgage broker as a
person, association or firm that
negotiates or attempts to negotiate a
loan for a borrower for a fee or
commission, but this law does not
require mortgage brokers to be
licensed. See Colo. Rev. Stat. §38-40101(6).
Regulatory Agency
N/A
all_states.DOC
May 2004
CONNECTICUT – MORTGAGE BROKER AND LOAN ORIGINATOR LICENSING
Licensing Law
License
Required?8
and Rules
Experience
Required for
Brokers
For brokering first
mortgage loans:
Nondepository
First Mortgage
Lenders and
Mortgage Brokers
Act, Conn. Gen.
Stat. §36a-485 et
seq.
For brokering first
mortgage loans:
Yes, if the person
directly or
indirectly
negotiates, solicits,
arranges, places or
finds a first
mortgage loan to
be made by a
lender, and earns
compensation for
the effort.
Loan originators must be
registered with the
Department of Banking by
their mortgage broker
employer. A loan
originator may not
originate loans for more
than one employer
simultaneously. Conn.
Gen. Stat. §36a-486(b).
Loan officers do not
include the officers of a
corporation licensed as a
mortgage broker, the
general partner of a
partnership licensed as a
members of a limited
liability company licensed
as a mortgage broker, or
the sole proprietor of a sole
proprietorship licensed as a
mortgage broker.
At each
licensed
location of the
mortgage
broker, a
supervisor with
at least 3 years
of experience in
the mortgage
business.
Required
experience must
be gained in the
previous 5
years (per
license
application).
(Experience
must be
documented on
the license
application
form.)
For brokering
second mortgage
loans: Second
Mortgage Act,
Conn. Gen. Stat.
§36a-510 et seq.
For brokering
second mortgage
loans: yes, same
definition as
above, but for
second mortgages.
Education
Required
No
Surety
Bond
Required
for
Brokers
$40,000
Minimum
Net Worth
Required?
In-State Office
Required?
(Bricks &
Mortar)
$25,000
(documented
by financial
statement not
more than 6
months old)
No
Duration of
License &
License
Renewal
Dates
Licenses expire
on September
30 of evennumbered
years.
Renewals due
by September
1.
License Related
Fees
$400 nonrefundable
application fee;
annual license
renewal fee =
$400. Fee to
register a loan
originator (first
mortgages) = $100
(paid every two
years, along with
the broker’s
license renewal).
Loan originator
registration
(second
mortgages) = $50.
Comments
&
Other
When a loan originator’s employment
is terminated, the employing mortgage
broker must notify the Department of
Banking.
License applicants who are sole
proprietors must provide their social
security number and federal tax ID
number. Licenses are not transferable.
Separate license required for each
branch office. Each first mortgage
loan made or brokered without a
license subjects the person to a civil
penalty up to $7,500.
Regulatory Agency
Connecticut Banking
Department
Consumer Credit Division
260 Constitution Plaza
Hartford CT 06103
(860) 240-8299
(860) 240-8178 (fax)
http://www.state.ct.us/dob/
Late filing fee for
late renewal of
license = $100.
8 Although there are two separate licensing laws depending on whether first or secondary mortgage loans are brokered, a person licensed under the secondary mortgage loan act is not required to have a license to originate first mortgage loans if he originates or brokers loans under
the second mortgage license and the number of first mortgages brokered is fewer than 12 in a period of 12 consecutive months.
all_states.DOC
May 2004
DELAWARE – MORTGAGE BROKER AND LOAN ORIGINATOR LICENSING
Licensing Law
License Required?
Originator
Licensing and
Rules
Mortgage Loan
Broker Act, 5 Del.
Code §§21012115. See also
operating
regulations
adopted by the
State Bank
Commissioner,
Del. Admin. Code
tit. 5 §2101.9
Yes, if the person does
the following for
compensation or gain,
either directly or
indirectly: (1)
negotiates or offers to
negotiate, arrange or
solicit mortgage loans
on behalf of borrowers;
or (2) holds himself out
as able to serve as agent
for any person in an
attempt to obtain a
mortgage loan; or (3)
holds himself out as
agent to negotiate the
terms and conditions of
mortgage loans on
behalf of a lender, if not
the employee of the
lender.
N/A (employees of
licensed mortgage
brokers are exempt
from licensing and
may act under their
employer’s license)
Experience
Required for
Brokers
None
Education
Required
No
Surety
Bond
Required
for
Brokers
$25,000
(letter of
credit for
$25,000 may
be
substituted)
Minimum
Net Worth
Required?
No
In-State
Office
Required?
(Bricks &
Mortar)
No
Duration of
License &
License
Renewal
Dates
Licenses are
annual and
expire on
12/31.
License Related
Fees
Comments
&
Other
$250 investigation
fee for application for
licensure; $250
annual license fee. If
licensee maintains its
loan files outside
Delaware, annual
supervisory fee of at
least $1,000 is
charged ($500
minimum if loan files
maintained in state).
maintain agent for service of process
in Delaware. License applicant must
provide 3 business references. Each
branch office must have a separate
license. (Licenses will not be issued to
net branches.) Licenses are not
transferable. Changes of name,
address, and changes of partners,
officers, and directors must be
provided to the State Bank
Commissioner.
Regulatory Agency
Delaware State Bank
Commissioner
555 E. Loockerman Street
Suite 210
Dover DE 19901
(302) 739-4235
(302) 739-3609 (fax)
www.state.de.us/bank/
Violations of the Mortgage Loan
Broker Act subject to fine of $50$200 for each offense, plus
imprisonment up to 3 months.
9 Mortgage Loan Broker Act applies to both first and second mortgage loans secured by owner-occupied Delaware residential real property.
all_states.DOC
May 2004
DISTRICT OF COLUMBIA – MORTGAGE BROKER AND LOAN ORIGINATOR LICENSING
Licensing Law
License
Required?
Mortgage Lender
and Broker Act,
D.C. Code Ann.
§26-1101 et seq.
See also
administrative
rules of the
Department of
Banking and
Financial
Institutions (Code
of District of
Columbia
Municipal
Regulations, Tit.
26A, Ch. 11,
“Mortgage
Lenders and
Brokers”).10
Yes, if the person, for
compensation,
accepts or offers to
accept an application
for a mortgage loan,11
solicits or offers to
solicit a mortgage
loan on behalf of a
borrower, or offers to
negotiate terms and
conditions of a
mortgage loan on
behalf of a lender.
D.C. Code §26-1101
(10). If the loan is
payable to the
broker must be
licensed as a lender,
not a broker (i.e.,
table-funding brokers
are considered
lenders).
Originator
Licensing
and Rules
N/A
Experience
Required for
Brokers
None specifically
required, but
applicant must have
“sufficient financial
responsibility,
business experience
and general fitness”
to engage in business
as a mortgage broker.
License applicant
must sign an affidavit
that he/she meets
these criteria
(attachment “E” of
license application
form).
Education
Required
No
Surety Bond
Required for
Brokers
Bond amount
depends on
volume of
business in
previous 3
years: if none,
bond is
$12,500. If up
to $1MM, bond
is $12,500; if
greater than
$3MM, bond is
$50,000
(maximum
bond for a
single office).
Maximum bond
for multiple
offices applying
for licenses
simultaneously
= $200K.
Minimum
Net Worth
Required?
In-State Office
Required?
(Bricks &
Mortar)
License
applicant
must
capitalize the
business
with at least
$10,000.
D.C. Code
Ann. §261103(b)(3).
In lieu of
capital the
broker can
submit
evidence of a
bank line of
credit for at
least $10,000
(per license
application
form).
No
Duration of
License &
License
Renewal
Dates
Licenses expire
one year after
their effective
date. D.C. Mun.
Regs. tit. 26A,
R. 1102.
Annual fees are
assessed on or
before 4/25
annually and
assessment
must be paid by
5/25.
License Related Fees
Non-refundable license
investigation fee = $100;
non-refundable application
fee = $500. Annual license
fee = $500. (Total of
$1,100 must be submitted
with application for
license.)
License renewal fee =
$400 + $6.60 per loan
brokered in the previous
license period.12 D.C. Mun.
Regs. tit. 26A, R. 1104.
Late fee for late filing of
renewal application =
$300. D.C. Mun. Regs. tit.
26A, R. 1103.2.
Late fee for failure to file
annual report timely: $50
per business day the report
is late.
Comments
&
Other
Each branch office must have its
own license. Licenses are not
transferable; notice must be
given to the Superintendent of
Banking upon change of
location, closing of any office,
identity of any new principal
officer, member, partner or
director. Each director, senior
officer, partner and principal
must consent to a background
check (per license application)
and provide a personal financial
report and biographical
information. Company credit
report must be provided with
license application.
Corporations, LLCs, etc. must
provide evidence of good
standing (authority to do
business in DC). Licensed
mortgage brokers must maintain
resident agent in D.C. Penalty
for acts in violation of licensing
law while unlicensed = $1,000
per violation. D.C. Mun. Regs.
tit. 26A, R. 1117.
Regulatory Agency
Department of Insurance,
Securities and Banking13
810 First St. NE
Washington DC 20002
(202) 727-1563
(202) 727-1290 (fax)
www.dbfi.dc.gov
10 Effective date of the Municipal Regulations is March 5, 2004.
11 “Mortgage loan” is limited to 1-4 family residential properties; a license is not required to broker commercial mortgage loans.
12 Maximum annual assessment regardless of number of loans brokered in previous license year is $50,000. D.C. Mun. Regs. tit. 26A, R. 1104.3.
13 Formerly known as the Department of Banking and Financial Institutions; On March 1, 2004, the Council of the District of Columbia adopted a law combining the Department of Insurance and Securities Regulation with the Department of Banking and Financial Institutions. The new agency is the Department of Insurance, Securities and Banking (DISB).
all_states.DOC
May 2004
FLORIDA – MORTGAGE BROKER AND LOAN ORIGINATOR LICENSING
Licensing Law
License
Required?
Originator
Licensing and Rules
Mortgage
Brokerage and
Lending Act, Fla.
Stat. §494.001 et
seq.15 See also
administrative
rules of the
Department of
Financial Services,
Fla. Admin. Code
Ch. 3D-40 (“Rules
Regulating
Mortgage
Brokerage”).
Yes, if the person
is engaged for
compensation
either directly or
indirectly in
acceptance of
applications for
mortgage loans,
solicitation of
mortgage loans on
behalf of
borrowers,
negotiation of
terms or
conditions of loans
on behalf of
lenders, or
negotiation of
sales of existing
mortgage loans to
institutional
lenders.
Each “associate” of a
mortgage broker must
be identified to the
Department of Financial
Services by his or her
employing mortgage
broker and if the
associate acts as a
mortgage broker (see
definition in previous
column), he or she must
be individually licensed
as a mortgage broker.
An associate is a person
employed by or acting
as independent
contractor for a
mortgage broker. The
report of associates
must be updated
quarterly and include
the person’s social
security number, name
and other identifying
information.16
Experience
Required for
Brokers
The principal
broker for a
licensee must
have at least 1
year of
experience as a
principal broker
or have been
actively
involved in the
mortgage
business for 1
year.
Education
Required14
Pre-requisite to
licensing: 24 hours
of classroom
education on primary
and subordinate
mortgage financing,
plus success on an
examination.17 Fla.
Admin. Code §§ 3D40.026, 3D-40.027.
Continuing education
during license period:
14 hours of education
of which at least 4
cover the Mortgage
Brokerage and
Lending Act and its
regulations.18 Fla.
Admin. Code § 3D40.0271.
Surety
Bond
Required
for
Brokers
No
Minimum
Net Worth
Required?
In-State
Office
Required?
(Bricks &
Mortar)
Duration of
License &
License
Renewal Dates
No
No (in-state
office
requirement
was repealed
in 1999).
Licenses issued to
individual
mortgage brokers
are renewed
biennially
beginning 9/1 of
each oddnumbered year.19
Fla. Admin. Code
§ 3D-40.043.
Licenses issued to
mortgage
brokerage
businesses are
renewed biennially
beginning 9/1 of
each evennumbered year.
Fla. Admin. Code
§ 3D-40.053.
License Related
Fees
Mortgage broker
license issued to a
natural person: $200
application fee; $23
fingerprint
processing fee.
Mortgage broker
business license:
$425 application fee
for main office + 23
fingerprint
processing fee for
each 10% or greater
owner, CEO and each
director. Application
fee for branch office
license = $225.
Renewal fee is $375
for principal office,
$225 for each branch.
Comments
&
Other
Regulatory Agency
An individual may obtain a license as a
mortgage broker; a business that employs
mortgage brokers is licensed as a “mortgage
brokerage business.” A person licensed as a
mortgage broker cannot be simultaneously
associated with more than one licensed
brokerage. A mortgage brokerage business
must have a designated principal broker;
this person must be in control of and
supervise the business. A mortgage broker
must notify the Department of Financial
Services within 30 days of any change in its
principal broker. Other changes that must
be reported include change of address,
officer or director, conviction of any crime
involving fraud, and bankruptcies. Fla.
Admin. Code § 3D-40.099. Licenses are not
transferable.
Services
Office of Financial
Regulation
200 East Gaines Street
Tallahassee FL 323990375
(850) 410-9500
(850) 410-9914 (fax)
www.fldfs.com/OFISR
Branch offices are separately licensed.
Each branch must have designated branch
broker who is in control of the business.
Fla. Admin. Code § 3D-40.165.
A fictitious name used by a licensee must
be filed registered with the Florida
Secretary of State.
Acting as a mortgage broker without a
license is 3rd degree felony.
14The required education must be taken at an accredited school.
15 The licensing law covers those who broker residential mortgage loans, and loans on commercial property or property containing 5 or more residential dwelling unites if the borrower is a natural person or the lender is a non-institutional investor. Fla. Stat. §494.001(18). Lien priority of the loan is immaterial.
16 A mortgage broker who violates the rule on reporting associates may be fined up to $500 and his license may be suspended. Fla. Admin. Code R. 3D-40.022(5).
17 Test-taker must achieve 75% correct answers on a test of 100 multiple-choice questions, taken within 3 hours. Passing score is good for 1 year from test date. Fla. Admin. Code §3D-40.025. Cutoff date for the test is the 15th of the month preceding the month in which the applicant desires to take the test (per bulletin of the Department). Testing conducted at sites throughout Florida. Test must be passed within 90 days of Department’s
consideration of license application.
18 Licensee must keep records of the completion of the continuing education for at least 4 years.
19 An initial mortgage broker license is valid for the remainder of the biennial license period for which it is issued (Mortgage Broker Application Instructions, p. 2). Example: if license issued on 12/103, it is valid until 9/1/05.
all_states.DOC
May 2004
GEORGIA – MORTGAGE BROKER AND LOAN ORIGINATOR LICENSING
Licensing Law
License
Required?
and Rules
Georgia
Residential
Mortgage Act, Ga.
also rules of the
Department of
Banking, Ga.
Admin. Code ch.
80-11-1 and 8011-4, which apply
to licensed
mortgage brokers.
Yes. Residential
Mortgage Act
requires the
licensing of
persons who
broker loans made
to natural persons
if the loan is
secured by an
interest in 1-4
family residential
property located in
Georgia,
excluding rental
homes and second
homes.
Mortgage brokers and loan
processors are licensed.
“Loan processors” are
persons who collect and/or
verify information
necessary to underwrite a
loan application, including
those who review
applications, order credit
reports, surveys and the
like; obtain verifications of
income or deposits,
provide escrow account
analyses or disclosure
forms for the loan, and so
forth. Ga. Comp. R &
Regs R. 80-11-4-.07. The
employees of a licensee are
not required to be
separately licensed if they
work exclusively for the
licensee under the
supervision of the licensee
and compensation is not
reported on a Form 1099.
Experience
Required for
Brokers
Yes; mortgage
brokers must
have at least 2
years of
verifiable full
time
experience. Ga.
Comp. R &
Regs R. 80-114-.01. This
experience must
be documented
with a letter
from the
previous
employer and
W-2 wage
statements.
Education
Required
Yes; licensees
must complete
at least 40
hours of
education as a
condition of
licensing. Four
of the hours
must be on
Georgia law
and regulations.
Surety
Bond
Required
for
Brokers
$50,000
unless the
applicant has
minimum net
worth of
$100,000.
Minimum
Net Worth
Required?
In-State Office
Required?
(Bricks &
Mortar)
$100,00020
unless the
applicant
provides a
surety bond
of $50,000.
Duration of
License &
License
Renewal
Dates
Georgia has
reciprocity; an out
of state mortgage
broker can obtain
a Georgia license
without an in-state
office if the home
state of the
applicant permits
Georgia mortgage
brokers to obtain a
license without
maintenance of an
in-state office.
Ga. Code §7-11003.1.
Licenses are
annual and
expire on June
30 with
renewals
available from
April 1. There
is a $300 fee for
late renewals.
License Related
Fees
$250 nonrefundable license
investigation fee +
annual license fee
of $500.21 $30 fee
for each
processing of
fingerprint cards,
if required.
Branch office
license fee is
$350; if an
individual
mortgage broker
has more than 1
location,
additional
locations after the
1st pay a $25 fee
per license year.
Comments
&
Other
License application must include the
applicant’s policies for handling
consumer complaints. Principal
officers, directors and 10% or greater
shareholders must provide background
statements, authorization for credit
checks and financial statements; the
Department may also require
fingerprints. A licensee must check
background of his employees within
90 days of their hire date, and do a
criminal background check of branch
managers. The criminal background
check and credit report check on
branch managers must be submitted to
the Department. Certain changes
must be reported to the Department,
including change of location, opening
of new office, change of owners or
management, entry of judgment
against the licensee, or claims against
the licensee’s surety bond.
Violation of the licensing law is a
misdemeanor, subject to fine up to
$1,000, imprisonment up to 1 year or
both.
Regulatory Agency
Georgia Department of
Banking and Finance
2990 Brandywine Road
Suite 200
Atlanta GA 30341-5565
(770) 986-1269
(770) 986-1654 (fax)
www.state.ga.us/dbf
20 Minimum net worth was increased from $25,000 to $100,000 effective July 1, 2003.
21 Annual license fee was increased from $400 to $500 effective August 17, 2003. See Ga. Comp. R & Regs R. 80-5-1-.02(4).
all_states.DOC
May 2004
HAWAII – MORTGAGE BROKER AND LOAN ORIGINATOR LICENSING
Licensing Law
License
Required?
and Rules
Mortgage Brokers
and Solicitors Act,
Haw. Rev. Stat.
§454-1 et seq.
Yes, if the person
does the
following, directly
or indirectly, for
gain or
compensation:
makes, negotiates,
acquires or offers
to make, negotiate
or acquire a
mortgage loan on
behalf of a
borrower.
“Mortgage solicitors” are
individuals not licensed as
mortgage brokers, but who
perform the services of a
mortgage broker.
Employees of licensed
mortgage brokers who act
as loan solicitors must be
separately licensed.
Experience
Required for
Brokers
At least 1
officer or
member of the
applicant must
have 2 years of
experience in
primary or
subordinate
mortgage
financing.
Education
Required
N/A
Surety
Bond
Required
for
Brokers
$15,000
Minimum
Net Worth
Required?
In-State Office
Required?
(Bricks &
Mortar)
Duration of
License &
License
Renewal
Dates
N/A
Yes; every
licensed mortgage
broker must
maintain a
principal place of
business in
Hawaii. Haw.
Rev. Stat. §4543(i). The place of
business must
comply with local
zoning codes (see
the application
form,
“Instructions”).
Biennial
licenses expire
on 12/31 of
even numbered
years. Failure
to renew by
12/31 in evennumbered years
is an automatic
forfeiture of the
license (per
application
instructions).
License Related
Fees
Mortgage brokers:
If license applied
for between 1/1 of
odd-numbered
year and 12/31 of
odd-numbered
year, $320; if
license applied for
between 1/1 of
even-numbered
year and 12/31 of
even-numbered
year, $185.
Mortgage
solicitors: If
license applied for
between 1/1 of
odd-numbered
year and 12/31 of
odd-numbered
year, $145; if
license applied for
between 1/1 of
even-numbered
year and 12/31 of
even-numbered
year, $85.
Comments
&
Other
A mortgage broker must be at least 18
years old. Branch offices are
separately licensed. Corporations and
partnerships must be registered with
the Business Registration Division,
Department of Commerce, as a
condition to licensing. Business
entities applying for a license must
appoint a “designated principal” -- this
is the person that must satisfy the
experience requirements.
Regulatory Agency
Department of Commerce and
Consumer Affairs
Professional and Vocational
Licensing Division
P.O. Box 3469
Honolulu HI 96801
(808) 586-3000
(808) 586-3031 (fax)
www.state.hi.us/dcca/pvl
If a licensed mortgage solicitor
terminates employment with a
licensed mortgage broker, the
solicitor’s license must be returned to
the Professional and Vocational
Licensing Division. Changes in office
location must be reported to the
regulator. Violation of the licensing
law is punishable by a fine up to
$1,000 or imprisonment up to 1 year,
or both.
all_states.DOC
May 2004
IDAHO – MORTGAGE BROKER AND LOAN ORIGINATOR LICENSING
Licensing Law
License
Required?
and Rules
Idaho Residential
Mortgage
Practices Act,
Idaho Code §263101 et seq.
Yes, if the person
does the following
for compensation
or gain: directly or
indirectly accepts
applications for 14 family
residential loans,
assists or offers to
assist in
preparation of loan
applications on
behalf of
borrowers, or
offers to negotiate
the terms of loans
with any person
making loans.
Persons employed on a
full-time basis by a
licensed mortgage broker,
and persons employed by
not more than 1 licensed
mortgage broker on a parttime basis, are exempt
from licensing (they may
act under their employer’s
license). Idaho Code §263103(7).
Experience
Required for
Brokers
A mortgage
broker and the
person in
charge of the
mortgage
broker’s
principal place
of business
must have at
least 3 years’
experience in
residential
mortgage
lending. Idaho
Code §263108(2).
Education
Required
N/A
Surety
Bond
Required
for
Brokers
$10,000 plus
an additional
$10,000
bond for
each branch
office.
Minimum
Net Worth
Required?
In-State Office
Required?
(Bricks &
Mortar)
$10,000
No.
Duration of
License &
License
Renewal
Dates
Licenses are
annual and
must be
renewed by
8/31.
License Related
Fees
$200 nonrefundable
application fee;
annual fee of $100
for the license.
Comments
&
Other
Department of Finance may examine
licensed mortgage brokers at its
discretion; licensee pays the cost of
the examination. Applicant for a
license must submit forms to be used
in its business along with the license
application. Licensees must report
certain changes to the regulator,
including change of address,
consolidation of locations, closing any
office, and changes in management.
Failure to obtain a license, if one is
required, is a felony. Department of
Finance may seek fine up to $5,000
for each violation of the licensing law.
Regulatory Agency
Idaho Department of Finance
P.O. Box 83720
Boise, ID 83720-0031
(208) 332-8000
(208) 332-8099 (fax)
http://finance.state.id.us/cons
umer/consumer_home.asp
all_states.DOC
May 2004
ILLINOIS – MORTGAGE BROKER AND LOAN ORIGINATOR LICENSING
Licensing Law
License
Required?
and Rules22
Illinois Residential
Mortgage License
Act, 205 ILCS
635/1 et seq. See
also the rules of
the Commissioner
of Banks and Real
Estate, 205 Ill.
Admin. Code tit.
38, §1050 et seq.
Yes, if the person
brokers a loan to
or for the benefit
of a natural person
and the loan is
made primarily for
personal, family or
household
purposes and is
secured by a
mortgage on
residential real
property or
certificates of
stock in a
cooperative
housing
corporation.
required to be licensed
individually unless (1)
employed by a licensed
mortgage broker, and (2)
registered by the employer
with the Commissioner of
Banks and Real Estate.23
Employees of licensed real
estate brokers that do not
hold their own licenses
may not act for more than
one licensed mortgage
broker. 205 ILCS 635/14(d) (3). Also, the
application form for the
license requires the
applicant to list all
independent brokers or
agents who are
compensated for assistance
in performance of
regulated acts (including
name, address and social
security number).
Experience
Required for
Brokers
Officers and
directors of the
applicant must
have at least 3
years’
experience in
real estate
finance and fair
lending or have
completed a
course of study
in real estate
finance within 9
months of
receiving a
license.
Education
Required
No
Surety
Bond
Required
for
Brokers
$20,000. Ill.
Admin. Code
tit. 38
§1050.490.
Minimum
Net Worth
Required?
In-State Office
Required?
(Bricks &
Mortar)
Duration of
License &
License
Renewal
Dates
$35,000 for a
mortgage
broker not
engaged in
mortgage
lending.
This will
increase to
$50,000 two
years after
the effective
date of P.L.
093-00561
(Laws of
2003).
Audited
financial
statements
are required
of new
license
applicants
(dated within
90 days).
No, if the
mortgage broker
has net worth of at
least $100,000 and
a $100,000 fidelity
bond; otherwise,
the broker must
have a “full
service” office in
Illinois. A fullservice office is
one with staff
adequate to handle
communications
with borrowers
and answer
questions on the
loan applications.
Licensees are
biennial.
Renewal fee is
$2,600 for a 2year period.
Renewals filed
late are subject
to $500 fine for
first 30 days
and $1,000
thereafter until
renewed.
Individual
branches are
individually
licensed.
“Notice of
Intent to
Establish
Additional Full
Service Office”
must be
accompanied by
$250 fee.24
License Related
Fees
Non-refundable
license application
fee = $1,500
(certified check or
money order);
license fee =
$1,200.25 For
“provisional
registration” of
loan originators
(from 7/1/04 to
12/31/04), a fee of
$125 per loan
originator. (See
footnote 1 below.)
License fees are
processed in
Springfield IL
office and should
be mailed to that
office (see
“Regulatory
Agency” column).
Comments
&
Other
maintain a fidelity bond of $100,000
covering employees in a position to
receive or handle money or make
entries in the licensee’s books.
Licensee must report certain situations
to the Commissioner of Banks and
Real Estate, including change of
address or name, change in officers or
directors, change in information
reported on an application for a
license, occurrence of bankruptcy, or
demand for repurchase of a loan.
Foreign corporations seeking licenses
must obtain certificate of authority to
do business in Illinois (per license
application instructions).
Regulatory Agency
Department of Financial and
Professional Regulation,
Division of Banks and Real
Estate
310 South Michigan Avenue
Suite 2130
Chicago IL 60604
(312) 793-3000
(312) 793-1490 (fax)
www.obre.state.il.us/
Address for license fees:
Office of Banks and Real
Estate
Bureau of Residential Finance
500 East Monroe Street
Springfield IL 62701
22 The Office of Banks and Real Estate adopted emergency rules for registration of loan originators, effective April 30, 2004 providing for “provisional registration” of loan originators. The provisional registration period is July 1, 2004 through December 31, 2004. After December 31, 2004, a regular certificate of registration is required in order for a person to act as a loan originator. See Ill. Admin. Code tit. 38, §1050.2200 et seq.
23 The requirement for a licensed mortgage broker to register its loan originator employees with the Commissioner of Banks and Real Estate became effective on June 1, 2004.
24 With the notice of full service office, the office lease and employment contract with the office manager must be included (per instructions to the application form).
25 The $1,200 license fee is billed to the applicant when the application is approved and must be paid within 10 days or the approval of license will be cancelled (per the application form).
all_states.DOC
May 2004
INDIANA – MORTGAGE BROKER AND LOAN ORIGINATOR LICENSING
Licensing Law
License
Required?
and Rules
Loan Broker Act,
Ind. Code §23-25-1 et seq.
Yes, if the person
promises to
procure a loan for
any person or
assist a person in
procuring a loan
from a third party,
or if the person
promises to make
a loan to any
person or is
involved in loan
origination
activities.
Loan originators employed
by loan brokers must be
registered with the
Securities Commissioner.
Ind. Code §23-2-5-4.
Experience
Required for
Brokers
No
Education
Required
24 hours of
academic
instruction in
loan brokerage
is required for
all persons who
originate loans
or negotiate
loan terms with
borrowers. Ind.
Code §23-2-510(d).
Surety
Bond
Required
for
Brokers
$50,000
Minimum
Net Worth
Required?
In-State Office
Required?
(Bricks &
Mortar)
Duration of
License &
License
Renewal
Dates
No
Yes (application
form requires
applicant to list
place of business
to be maintained
by the loan broker
in Indiana).
Licenses expire
on January 1 in
the year after
the year in
which they
were issued.
License Related
Fees
Initial fee for
filing a license
application =
$200. License
renewal fee =
$200.
Comments
&
Other
Loan brokers must appoint an agent
for service of process. If a loan
originator employed by a licensed
loan broker terminates his
employment, that fact must be
reported to the securities
commissioner. Securities
commissioner may impose a civil
penalty up to $10,000 for each
violation of the Loan Broker Act. Ind.
Code §23-2-5-14(a).
Regulatory Agency
Secretary of State
Securities Division
302 West Washington St.
Room E-111
Indianapolis IN 46204
(317) 232-6681
(317) 233-3675 (fax)
www.state.in.us/sos
all_states.DOC
May 2004
IOWA – MORTGAGE BROKER AND LOAN ORIGINATOR LICENSING
Licensing Law
License
Required?
Mortgage Bankers
and Brokers Act,
Iowa Code
§535B.1 et seq.
Yes, if the person
negotiates,
arranges or
attempts to
negotiate or
arrange more than
4 first mortgage
loans on Iowa
residential
property.
and Rules
N/A -- a person who acts
solely as an employee or
agent of a licensed
mortgage broker is not
required to be separately
licensed.
Experience
Required for
Brokers
No
Education
Required
No
Surety
Bond
Required
for
Brokers
$15,00 for
mortgage
brokers
engaged only
in brokerage;
$30,000 if
the mortgage
broker is also
engaged in
mortgage
banking.
Minimum Net
Worth
Required?
No (but a recent
financial statement
must accompany
the application for
a license). The
financial statement
must be “audited”
or “reviewed” by
an independent
CPA.
In-State
Office
Required?
(Bricks &
Mortar)
No
Duration of
License &
License
Renewal
Dates
Licenses expire
on 6/20 in the
year after they
are issued.
Renewal
applications
must be filed by
June 1.
License Related
Fees
$500 application
fee; $200 license
renewal fee.
Comments
&
Other
Foreign corporation applicants for
mortgage broker license must be
qualified to do business in Iowa.
Mortgage brokers must identify on the
license application those institutions
to whom they have brokered loans in
the past 12 months.
Regulatory Agency
Iowa Division of Banking
200 E. Grand Avenue
Suite 300
Des Moines IA 50309
(515) 281-4014
(515) 281-4862 (fax)
www.idob.state.ia.us
all_states.DOC
May 2004
KANSAS – MORTGAGE BROKER AND LOAN ORIGINATOR LICENSING
Licensing Law
License
Required?
and Rules
Kansas Mortgage
Business Act,
Kan. Stat. Ann.
§9-2201 et seq.
See also
administrative
rules of the State
Bank
Commissioner
applicable to
mortgage brokers,
Kan. Admin. Code
§17-24-1 et seq.
Yes, a mortgage
broker license is
required if the
person is engaged
in mortgage
business, meaning,
for compensation
or gain, directly or
indirectly making,
originating,
servicing,
soliciting, placing,
negotiating,
acquiring, selling,
or arranging 1-4
family residential
loans for others.
A mortgage
broker’s loan
originators must
be registered.
individually registered
with the Department of
Banking. Registration is
accomplished by
identification of the loan
originator on the license
application of the
employing mortgage
broker and submission of
“Form G” with the
application. The
Department of Banking
may conduct a “records
investigation” on any loan
originator.26
Experience
Required for
Brokers
N/A
Education
Required
Loan
originators
must complete
at least 8 hours
of education
annually.
Surety
Bond
Required
for
Brokers
Varies,
depending
on whether
the broker
maintains an
office in
Kansas. If
yes, bond is
$50,000.
Otherwise,
bond is
$100,000
plus
minimum net
worth of
$50,000.
Minimum
Net Worth
Required?
In-State Office
Required?
(Bricks &
Mortar)
Depends on
whether the
mortgage
broker
maintains a
Kansas
office. If so,
no minimum
net worth
required.
Otherwise,
$50,000.
No
Duration of
License &
License
Renewal
Dates
Licenses are
biennial and are
renewed in oddnumbered
years. Renewal
applications
must be filed at
least 30 days
before a license
expires.
(Renewal forms
are mailed 60
days before
license
expiration
according to the
application
form
“instructions.”)
License Related
Fees
$600 nonrefundable
application fee for
the principal place
of business + $200
for each branch
office. There is a
$75 registration
fee per registered
loan originator.
There is a $25 fee
to amend
information
provided on a
license
application.
Biennial license
renewal fee is
$400.
Comments
&
Other
A loan originator may be employed by
only 1 mortgage broker at a time. The
General Instructions to the application
form (rev. 6/2003) states that “It is the
opinion of the Kansas Secretary of
State that companies exclusively
engaged in the mortgage business are
exempt from registering with the
Kansas Secretary of State as foreign
corporations.”
Regulatory Agency
Kansas State Bank
Commissioner
700 SW Jackson Street
Suite 300
Topeka KS 66603-3714
(785) 296-2266
(785) 296-0168 (fax)
www.osbckansas.org/
26 A loan originator means a person whose job responsibilities include direct contact with borrowers during the loan origination process, including soliciting, negotiating, acquiring, arranging or making mortgage loans for others, obtaining personal or financial information from borrowers, assisting with preparation of loan applications or other documents, quoting loan rates or terms, or providing required disclosures. Loan originators do not
include persons whose responsibilities are solely clerical.
all_states.DOC
May 2004
KENTUCKY – MORTGAGE BROKER AND LOAN ORIGINATOR LICENSING
Licensing Law
License
Required?
and Rules
Mortgage Loan
Companies and
Loan Brokers Act,
Ky. Rev. Stat.
Ann. §294.010 et
seq. See also
regulations of the
Office of Financial
Institutions on
mortgage brokers,
Ky. Admin. Regs.
(KAR) 12:002 to
12:095.
Yes, if a person
brokers mortgage
loans on 1-4
family residential
property in
Kentucky, or holds
himself out as an
agent of borrowers
or lenders.
Loan officers are required
to be registered with the
Office of Financial
Institutions effective July
1, 2004.27 Loan officers
must be W-2 employees of
licensed mortgage brokers,
according to the
Institutions; independent
agents may not act as loan
officers unless licensed as
mortgage brokers.
Experience
Required for
Brokers
No.
Education
Required
For mortgage
brokers, a 30
hour training
course, unless
the applicant
for a mortgage
broker license
has held a
mortgage
broker license
from another
state for at least
1 year. Ky.
Rev. Stat.
§294.032(6).
For loan
officers, at least
12 hours of
education
annually, at
least 6 of which
are in the
classroom effective July 1,
2005.
Surety
Bond
Required
for
Brokers
$50,000 (a
letter of
credit or
escrow
agreement
for a savings
certificate
may be
substituted
for the
bond).
Minimum
Net Worth
Required?
In-State Office
Required?
(Bricks &
Mortar)
Duration of
License &
License
Renewal
Dates
No, but per
the
instructions
to the license
application, a
new venture
“must be
capitalized
sufficiently
to carry on a
new
business.”
Initial
balance sheet
and 12month
projected
cash flow
statement
must be
included
with the
application
form.
Yes, since
September 24,
2003, a mortgage
broker must have a
physical office in
Kentucky. The
physical office
cannot be a post
office box; it must
have a street
address and be
accessible to the
general public,
holding itself open
at regular business
hours.
Licenses expire
on June 30 and
must be
renewed
annually by
June 20. Late
renewals result
in a $250
reinstatement
fee.
There are special
requirements for
use of a residence
as a place of
business (must
comply with
zoning
requirements,
etc.). KAR
12:075.
License Related
Fees
Initial
investigation fee
$350 for principal
office + $250 for
each branch office.
Initial license fee
= $450 per year
for the principal
office + $250 per
year for each KY
branch office
licensed
simultaneously, if
application filed
between July 1
and December 3,
and $150 per year
for the principal
office of the
mortgage broker +
$100 per year for
each KY ranch
office licensed
simultaneously, if
application filed
between January
June 30.
Comments
&
Other
Persons whose responsibilities are
merely clerical and loan processing
personnel are not considered loan
officers. A loan processor can work
under the supervision of a mortgage
broker or loan officer to gather
information, request information,
assemble loan files and the like,
without registration. Foreign
corporations seeking mortgage broker
licenses must qualify to do business in
Kentucky. The foreign corporation
qualification must have been in place
for at least 6 months before the
application is filed. Persons with
more than 10% ownership in an
applicant, and the applicant’s officers
and directors, must agree to authorize
a credit report. Greater than 10%
owners must provide signed, current
financial statements. If applicant
plans to have branch offices, the
branch office manager must be
identified for each branch.
Regulatory Agency
Department of Public
Protection
Office of Financial
Institutions
1025 Capital Center Drive
Suite 200
Frankfort, KY 40601
(502) 573-3390
(502) 573-8787 (fax)
www.dfi.state.ky.us/
Loan officer
registration fee is
$50.
Those filing claim
of exemption from
licensing must pay
$150 fee.28
27 The requirement for registration of loan officers was added by Ch. 64, Laws of 2003 (H.B. 287), effective June 24, 2003.
28 HUD approved mortgagees are exempt from licensing but must file exemption certificate and pay exemption fee (per information on website, http://dfi.ky.gov/legislation.htm, visited 6/15/04).
all_states.DOC
May 2004
LOUISIANA – MORTGAGE BROKER AND LOAN ORIGINATOR LICENSING
Licensing Law
License
Required?
and Rules
Residential
Mortgage Lending
Act, La. Rev. Stat.
Ann. §6:1081 et
seq.
Yes, if the person
is engaged, for
compensation, in
direct loan
origination and
funding, or
offering to
negotiate, place or
find a residential
mortgage loan for
another person.
Yes, an originator must be
licensed. An “originator”
is a person who interviews
consumers in connection
with applications for
mortgage loans; but not a
person whose
responsibilities are merely
clerical. A W-2 employee
of a licensed mortgage
broker who operates under
the control of the licensee
and works for only one
licensee is not an
originator required to have
an individual license.
(Policy Statement, Office
of Financial Institutions,
August 2003.) Loan
originators must file a
separate license application
form and provide consent
for a background
investigation.
Experience
Required for
Brokers
N/A
Education
Required
10 hours of
continuing
education per
license year.
La. Rev. Stat.
§6:1094.C (1).
There is
reciprocity with
other states
whose
continuing
education
requirements
are equivalent
to or higher
than
Louisiana's.
[La. Rev. Stat.
§6:1094.D.
Surety
Bond
Required
for
Brokers
$50,000 as
substitute for
minimum net
worth of
$50,000;
otherwise, no
surety bond
required.
Minimum
Net Worth
Required?
In-State Office
Required?
(Bricks &
Mortar)
$50,000 or
more as
evidenced by
a financial
statement
prepared by
an
independent
CPA.29
(Pledge of
deposit
account or
$50,000
surety bond
may
substitute.)
No.
Duration of
License &
License
Renewal
Dates
Licenses expire
annually on
December 31;
renewal filings
are due on
December 1.
License Related
Fees
Initial application
fee for mortgage
broker license =
$400; annual
license renewal =
$300.
Initial application
fee for loan
originator license
= $100. Fee for
change of
employment of
licensed originator
= $50.
Comments
&
Other
Foreign corporations applying for
mortgage broker license must be
qualified to do business in Louisiana.
All corporate entities may engage in
mortgage brokerage only through
individual licensees with mortgage
broker or originator licenses. An agent
for service of process in Louisiana
must be appointed. If a loan
originator changes his employment,
notice of that fact must be given to the
Commissioner of Financial
Institutions within 30 days. Filing fee
is $50 ($100 if the filing is late).
Regulatory Agency
Office of Financial
Institutions
P.O. Box 94095
Baton Rouge, LA 708049095
(225) 925-4660
(225) 925-4548 (fax)
http://www.ofi.state.la.us/
Those exempt
from licensing but
subject to
registration must
pay a $400
registration fee.
29 Financial statement showing the required minimum net worth cannot be more than 18 months old at time of license renewal.
all_states.DOC
May 2004
MAINE – MORTGAGE BROKER AND LOAN ORIGINATOR LICENSING
Licensing Law
License
Required?
Maine Consumer
Credit Code, Me.
Rev. Stat. Ann. tit.
9-A §10-101 et
seq. (dealing with
credit service
organizations).
Yes, for persons
who arrange
extensions of
credit or provide
assistance to
consumers seeking
extensions of
credit. Such
persons are
licensed as “credit
services
organizations.”
and Rules
N/A
Experience
Required for
Brokers
No
Education
Required
No
Surety
Bond
Required
for
Brokers
$10,000
Minimum
Net Worth
Required?
In-State Office
Required?
(Bricks &
Mortar)
No
No
Duration of
License &
License
Renewal
Dates
Licenses must
be renewed by
1/31 annually.
Annual renewal
fee is $100.
License Related
Fees
$200 application
fee for credit
services
organization
license. Annual
renewal fee is
$100.
Comments
&
Other
Application for a credit services
organization license must include the
forms and sample agreements the
broker will use with consumers.
Regulatory Agency
Maine Department of
Professional and Financial
Regulation
Office of Consumer Credit
Regulation
35 State House Station
Augusta ME 04333-0035
(207) 624-8527
(207) 582-7699 (fax)
http://www.state.me.us/pfr/cc
p/ccp_index.htm
all_states.DOC
May 2004
MARYLAND – MORTGAGE BROKER AND LOAN ORIGINATOR LICENSING
Licensing Law
License
Required?30
Originator
Licensing and
Rules
Mortgage Lender,
Law, Md. Fin.
Inst. Code §11501 et seq. See
also regulations of
the Division of
Financial
Regulation (Code
of Maryland
Regulations),
COMAR
§09.03.06.
Yes, if the person
for a fee or
consideration,
directly or
indirectly aids or
assists a borrower
to obtain a
mortgage loan if
the person
providing the
assistance is not
named as the
lender in the loan
agreement. (If the
person arranging
the loan is the
payee of the loan,
even in a tablefunded
transaction, he is a
lender, not a
mortgage broker.)
N/A. Employees
acting within the
scope of their
employment for a
person who is either
licensed or exempt
from licensing are
not required to be
individually licensed.
Experience
Required for
Brokers
An individual or sole
proprietor applicant
for a mortgage broker
license must have at
least three years of
business experience,
documented by a
current resume
showing positions
held, duties and
responsibilities, and
beginning and ending
dates. From the
Division of Financial
Regulation’s website,
http://www.dllr.state.
md.us/finance/mortga
gel.htm#corp, visited
7/14/04. No
statutory
requirements for
experience of
applicants that are
entities (corporations,
partnerships, LLCs).
Education
Required
Surety Bond
Required for
Brokers
“Covered
employees”31
must complete
at least 20
hours32 of
continuing
education in
connection with
their
employer’s
license renewal.
COMAR
§09.03.06.17.33
Yes; amount
depends on
whether the broker
has done business
in the previous 36
months: if not,
$15,000.
Otherwise, bond
depends on
volume of
business in
Maryland, ranging
from $25,000
(aggregate amount
of all Maryland
loans under
$3MM) to $75,000
(more than
$10MM in
business in
Maryland).34
Bond runs
concurrently with
license period.
Minimum
Net Worth
Required?
In-State
Office
Required?
(Bricks &
Mortar)
No, but
financial
statements
dated within
12 months
must be
provided
with license
application.
No
Duration of
License &
License
Renewal
Dates
Mortgage
broker license
is valid for 2
years and
expires on
12/31 of oddnumbered year
following its
issuance.
License Related
Fees
Investigation fee
for filing license
application =
$100. License fee
= $1,000 if
application for
license filed
during evennumbered year;
$500 otherwise.
(Same fees for
branch offices.)
License renewal
fee = $1,000.
Comments
&
Other
If the mortgage broker’s principal
place of business is outside Maryland,
he must appoint an agent for service
of process in Maryland. All out-ofstate applicants must obtain a good
standing certificate from Department
of Taxation. Applicant for license
must provide fingerprints and criminal
history records check (this applies to
president, officer, director and
principals of a corporate applicant).
Branch offices are separately
licensed.35 Business credit report must
be provided with license application
(if a new business, personal credit
report on president and 10% or greater
shareholders). Willful violation of
Mortgage Lender Law is a
misdemeanor, subject to fine up to
$5,000 and imprisonment up to 1 year
or both. Unlicensed person cannot
collect a mortgage brokerage fee,
interest or costs on a loan. Licensee
must notify the regulator of changes
of control, relocation of office, and
similar.
Regulatory Agency
Department of Labor,
Licensing and Regulation
Regulation
500 North Calvert Street
Room 402
Baltimore MD 21202
(410) 230-6100
(410) 333-3866 (fax)
www.dllr.state.md.us/finance/
30 License application can be filled out and submitted electronically through this webpage: http://www.dllr.state.md.us/license/fin_reg/mortlend/mdfinreg.html
31 Branch manager and persons who accept mortgage loan applications or negotiate loan terms with borrowers are “covered employees.” However a "covered" employee does not include an employee who has been employed by the licensee for less than six months before the expiration of the licensee’s current license, and has no prior experience as a covered employee with any other licensee (per the regulator’s website, viewed 7/14/04).
32 The 20 hours must include at least the following: Ethics—2 hours; Federal Real Estate Settlement Procedures Act (RESPA) compliance—2 hours; Federal Truth in Lending compliance—2 hours; Federal Equal Credit Opportunity Act/Fair Lending compliance—2 hours; Maryland law update—2 hours; Federal law update—2 hours; Electives—8 hours.
33 There is a reduced continuing education requirement (6 hours) for a person who was a covered employee with any licensee for the immediately preceding 10 years, as follows: Ethics—2 hours; Maryland law update—2 hours; Federal law update—2 hours.
34 The bond applies to each office, but if 5 or more license applications or license renewals are filed simultaneously, a bond of $375,000 will cover all offices regardless of volume of Maryland business or number of offices. Md. Fin. Inst. Code §11-508. The bond amount must be recalculated on 12/31 of each even-numbered year and licensee must provide a bond rider adjusting the amount if appropriate. COMAR §09.03.06.15.
35 However, bond for multiple branches may be provided through a single “blanket bond” if licenses applied for or renewed simultaneously. See column on surety bonds.
all_states.DOC
May 2004
MASSACHUSETTS – MORTGAGE BROKER AND LOAN ORIGINATOR LICENSING
Licensing Law
License
Required?36
Originator
Licensing and Rules
Mortgage Lenders
and Brokers Act,
Mass. Gen. L. ch.
255 E. See also
regulations of the
Commissioner of
Banking, 209
Code of Mass
Regs (CMR) ch.
42 and regulations
of the attorney
general, 940 CMR
ch. 8.00.
Yes, if the person
brokers a loan to a
natural person and
the loan is made
primarily for a
personal, family or
household purpose
and the loan is
secured by
residential
property located in
Massachusetts.37
Regulations define
brokering as
directly or
indirectly
negotiating,
placing, assisting
in placement,
finding or offering
to negotiate, place,
assist in placement
or finding
mortgage loans.
209 CMR §42.02.
N/A. An employee of a
licensed mortgage
broker or mortgage
lender is not required to
obtain an individual
license if he acts as a
mortgage broker under
the direction of his
employer. This
exemption is available if
the individual loan
originator acts
exclusively for his
employer and the
employer completes a
“Statement of
Accountability” in
which he assumes
responsibility for the
acts of the employee.
Experience
Required for
Brokers
Mortgage brokers:
At least 1 year of
experience
working for a
mortgage lender,
mortgage broker
or loan agency,
financial
institution or
similar + working
knowledge of laws
and regulations
governing
mortgage
transactions.38 See
Regulatory
Bulletin 5.1-102.
Education
Required
Formal training
may substitute
for required
experience (see
previous
column).
Mortgage brokers
who supervise
other mortgage
brokers: At least 2
years of
experience.39
Surety
Bond
Required
for
Brokers
No
Minimum Net
Worth
Required?
None specified in
statute, but
regulator has
stated that “zero”
or “negative” net
worth is
unacceptable.40
License
application states
“new entities must
be capitalized with
sufficient capital
to maintain a
positive net
worth.” Financial
statements for
previous two years
must be provided
with license
application.
In-State
Office
Required?
(Bricks &
Mortar)
No
Duration of
License &
License
Renewal
Dates
Licenses expire
annually on
June 1.
License Related
Fees
Investigation fee =
$115; license fee =
$500 for principal
office + $50 for
each branch office.
$50 per day fine
for failure to file
annual report
timely.
Comments
&
Other
A licensee that does not have an office
in Massachusetts must appoint an
agent for service of process in the
state. Foreign corporations must be
qualified to do business in
Massachusetts. Mortgage broker
license applicants must list on the
application identity of lenders for
Massachusetts loans because table
funders are considered lenders, not
brokers. Branch offices are not
separately licensed but are listed on
the applicant’s license application
form (“Supplemental License
Application”). Recordkeeping plan
and 3 letters of reference must be filed
with application for license. Licensee
must notify the regulator in advance
of changes in location or ownership.
Other significant events, such as
bankruptcy, must be reported.
Mortgage broker licenses are not
transferable or assignable. Failure to
obtain license subject to fine up to
$500, imprisonment up to 6 months,
or both. Conducting business with an
unlicensed mortgage broker is a
violation of the Attorney General’s
regulations. 940 CMR §8.06(9).
Regulatory Agency
Office of the Commissioner
of Banks
Division of Banks and Loan
Agencies
Consumer Compliance
Division
One South Station, 3rd Floor
Boston MA 02110
(617) 956-1500
(617) 956-1599 (fax)
www.state.ma.us/dob
36 Commissioner of Banking is authorized to issue temporary licenses (3 months) in order to conduct further background investigation of licensee.
37 A broker license is not required to broker loans secured by commercial property.
38 Applicants with less than 1 year of experience may substitute formal training for up to 6 months of the required experience.
39 Application form requires manager of a licensed location to provide a resume or summary of professional experience including employers, dates of employment, and relevant business and educational experience.
40 If a licensee has sizable off balance sheet or funding risks, excessive interest rate risk or similar, the Commissioner of Banking may require the licensee to have a fixed minimum net worth. 209 CMR §42.08A(1).
all_states.DOC
May 2004
MICHIGAN – MORTGAGE BROKER AND LOAN ORIGINATOR LICENSING41
Licensing Law
Mortgage Brokers,
Lenders and
Servicers
Licensing Act,
MCLA § 445.1651
et seq.
License
Required?
Originator
Licensing and Rules
Experience
Required for
Brokers
Yes, if the person
directly or
indirectly serves
as an agent for any
person in an
attempt to obtain a
mortgage loan; or
services as an
agent for any
person who makes
or offers to make
residential (1-4
family) first
mortgage loans on
Michigan
property.
The law defines the
term “residential
mortgage originator” (a
person who assists
another person in
obtaining a mortgage
loan) but does not
require originators to
obtain licenses separate
from their employer’s
license, if employed
full-time by a licensee.42
A residential mortgage
originator must be
individually licensed in
order to receive any
compensation from a
mortgage broker or
lender other than his
employer.
None (but
business
experience and
employment
record of sole
proprietor or
officers,
members,
directors,
partners,
directors and
20% or greater
shareholders
must be
described in the
license
application).43
Education
Required
None
Surety Bond
Required for
Brokers
Minimum
Net Worth
Required?
$25,00044 if
mortgage broker
receives advance
deposits from
prospective
borrowers;
otherwise, none.
If no bond
provided, license
applicant must file
“Statement of
Exemption of
Proof of Financial
Responsibility
Deposit” (Form
FIS 1018).
In-State
Office
Required?
(Bricks &
Mortar)
Duration of
License &
License
Renewal
Dates
$25,000 if
mortgage
broker receives
advance
deposits from
prospective
borrowers;
otherwise,
none.45
No (but a
registered agent
for service of
process in
Michigan must
be appointed).
Licenses expire
June 30
annually;
renewal
applications are
due by June 15
before
expiration.
License Related
Fees
$450 investigation
fee; $450 annual
license fee. $450 fee
for registration (in
lieu of licensing, for
those approved by
secondary market
agencies). Operating
fee paid annually
based on volume of
business in previous
year.
$100 non-refundable
administrative fee if
license applicant
deposits funds with
the state in lieu of
surety bond.
$25 per day fee for
late renewal of
license.
Comments
&
Other
Foreign corporations must
qualify to do business in
Michigan as prerequisite to
licensure. If trade name is used,
it must be registered with county
clerk in county(ies) where used.
Those approved by secondary
market agencies may register,
rather than become licensed (a
streamlined process). Licensee
must notify the regulator of
branch offices, although these
are not separately licensed.
Licenses are not transferable or
assignable without consent of
regulator. Willfully engaging in
the business of a mortgage
broker without a license is
punishable by a fine up to
$5,000, imprisonment up to 3
years, or both.
Regulatory Agency
Department of Labor and
Economic Growth
Office of Financial and
Insurance Services
P.O. Box 30220
Lansing MI 48909
(517) 373-0220
(517) 373-1224 (fax)
www.michigan.gov/cis
41 This chart reflects the requirements applicable to brokers of residential first mortgage loans under the Mortgage Brokers, Lenders and Servicers Licensing Act, MCLA § 445.1651 et seq. Brokers of second mortgage loans are licensed and regulated under the Secondary Mortgage Loans Act, MCLA § 493.51 et seq. et seq. (a separate licensing scheme, not discussed in this chart).
42 The Department of Consumer and Industry Services clarified the “full time employee” issue in a bulletin dated December 3, 2003, in which it lists the factors that characterize an employee (including W-2 compensation, supervision and control by the employer; benefits paid by the employer; unemployment contributions made by the employer, etc.).
43 The Commissioner of Financial and Insurance Services is required by statute to evaluate the license applicant’s experience in the licensed area.
44 License applicant may deposit funds with the State of Michigan in lieu of providing a surety bond. There is a fee associated with this substitution (see “License Related Fees”).
45 Items excluded from calculation of net worth include assets pledged to secure obligations of persons other than the licensee; assets except construction loans receivable secured by first mortgages from related companies, due from officers or stockholders or those in which officers or stockholders have an interest; amounts in excess of the lower of cost or market value of loans in foreclosure or REO; investments in joint ventures, subsidiaries or
affiliates; goodwill or value placed on insurance renewals, property contract renewals, or similar; and organization costs. (See Section III, “Net Worth Requirements” from the license application form.)
all_states.DOC
May 2004
MINNESOTA – MORTGAGE BROKER AND LOAN ORIGINATOR LICENSING
Licensing Law
License
Required?
Originator
Licensing and
Rules
Residential
Mortgage
Originator and
Servicer Licensing
Act, Minn. Stat.
ch. 58.
Yes, a person must
be licensed as a
“residential mortgage
originator” to broker
mortgage loans, i.e.,
to directly or
indirectly for
compensation, solicit
or offer to solicit,
accept or offer to
accept an application
for a mortgage loan
(a loan made
primarily for
personal, family or
household purposes
secured by residential
real property or
cooperative shares).46
Employees of
licensed residential
mortgage originators
are not required to be
separately licensed.47
They may act under
their employer’s
license. “FAQs” of
the Department of
Commerce indicate
that independent
contractors (i.e.,
those whose wages
are not on a W-2
basis) of residential
mortgage originators
must themselves be
licensed as residential
mortgage originators.
Experience
Required for
Brokers
Education
Required
None (but
applicant must
describe his
experience in
the license
application
form).
None (per
“FAQs” on
the
regulator’s
website,
visited
7/16/04).
Surety Bond
Required for
Brokers
Minimum
Net Worth
Required?
No, unless the
broker services
mortgage loans, in
which case a $50K
bond is required
(unless the broker
is approved as a
seller/servicer by
either Fannie Mae
or Freddie Mac, in
which case no
bond is required).
No (but
applicant for a
license must be
financially
solvent and
comply with
federal and
state tax laws).
In-State
Office
Required?
(Bricks &
Mortar)
No (see
“FAQs” of the
Department of
Commerce
website).
Duration of
License &
License
Renewal
Dates
Licenses are
valid for 2
years and
expire on July
31 in oddnumbered
years. Renewal
applications
must be filed by
July 15;
renewal is
effective
August 1.
Exemptions are
continuous and
do not expire;
exemptions are
valid as long as
the information
contained in the
exemption
application is
current.
License Related
Fees
Initial license fee
= $850 ($425 if
license expires
less than 12
months after it is
issued). Renewal
license fee = $500.
One-time nonrefundable fee for
filing exemption
certificate
(“Residential
Mortgage
Originator
Certificate of
Exemption
Application”) =
$100.
Comments
&
Other
Branch offices are not individually
licensed, because it is the residential
mortgage originator (whether a person
or an entity) that is licensed, not the
location where such person works. If
trade name is used, it must be
registered with Minnesota secretary of
state.48 Criminal background
investigation conducted on licensee’s
partners, officers, directors, managers,
control persons, 10% or greater
shareholders. Commissioner of
Commerce may impose a penalty up
to $2,000 for failure to comply with
licensing law. Material changes to
information provided in the license
application must be reported to the
regulator within 10 days after the
change, but bankruptcies must be
reported immediately.
Regulatory Agency
Department of Commerce
Financial Examinations
Division
85 Seventh Place East
Suite 500
St. Paul MN 55101-2198
(651) 296-4026
(651) 296-8591 (fax)
www.commerce.state.mn.us
46 Persons who broker only commercial mortgage loans are not subject to licensing under the Residential Mortgage Originator and Servicer Licensing Act.
47 An employee means an individual who is treated as an employee by the residential mortgage originator or servicer for purposes of compliance with federal income tax laws. See “FAQs” of the Department of Commerce website at http://www.state.mn.us/cgi-bin/portal/mn/jsp/content.do?subchannel=-536881535&programid=536885405&sc3=null&sc2=null&id=-536881352&agency=Commerce, visited 7/16/04.
48 Only one assumed name is allowed under a single license; if more than one assumed name is used, separate licenses are required. See “FAQs” of the Department of Commerce website, visited 7/16/04.
all_states.DOC
May 2004
MISSISSIPPI – MORTGAGE BROKER AND LOAN ORIGINATOR LICENSING
Licensing Law
License
Required?
and Rules
Experience
Required for
Brokers
Education
Required
Mortgage
Consumer
Protection Law,
Miss. Code Ann.
§81-18-1 et seq.
See also
administrative
regulations of the
Department of
Banking, Miss.
Admin. Code 03
000 106.50
Yes, if the person
directly or
indirectly solicits,
processes, places
or negotiates loans
for others and does
not close the loan
in his own name
or not use his own
funds.
Loan originators employed
by licensed mortgage
brokers are registered with
the Department of Banking
by their employer. Miss.
Code Ann. §81-18-5. (A
loan originator is an
individual employed by or
acting as exclusive agent
for a single mortgage
company, whose job
responsibilities include
direct contact with
borrowers during the loan
origination process,
assisting with preparation
of loan applications,
quoting loan rates or terms,
or providing loan
disclosures.)51
At least 2 years
of experience in
mortgage
lending (this
applies to at
least one
executive
officer of an
applicant that is
a business
organization;
the person with
the required
experience
should be
named on the
application as
the “principal
officer”).52
12 hours of
continuing
education per
year in primary
or subordinate
mortgage
financing (to be
completed by
loan originators
and principal
officers of the
licensee who
are actively
involved in the
mortgage
business in
Mississippi).
Evidence of
completion of
education must
be provided
with license
renewal.
A “principal officer” must
be designated on the
license application; this
person must have the
required experience and be
authorized to sign
documents on behalf of the
licensee. The “principal
officer” is not required to
be registered as a loan
originator.
Surety
Bond
Required
for
Brokers
$25,000
Minimum
Net Worth
Required?
No
In-State Office
Required?
(Bricks &
Mortar)
Duration of
License &
License
Renewal
Dates
Yes. The place of
business in
Mississippi must
comply with local
zoning laws, have
at least 1 enclosed
room in which
negotiations may
be conducted in
privacy, and
display a
permanent sign
visible to the
general public.
Miss. Code Ann.
§81-18-25; Miss.
Admin. Code 03
000 016 §7. The
Mississippi office
does not have to
be the main office
of the applicant,
however; if the
main office is
elsewhere, the
Mississippi office
can be a branch
office of the
licensee.
Licenses and
loan originator
registrations are
annual and
must be
renewed by
September 30.
License Related
Fees49
Mortgage broker
license: $750
initial license fee;
$475 annual
license renewal
fee (the renewal
fee is $750 + a $25
daily late fee if
renewal
application is filed
late).
Loan originator
registration:
Initial registration
fee = $100.
Annual renewal =
$50 (the renewal
fee is $100 if
renewal
application is filed
late + a $25 daily
late fee).
Comments
&
Other
A foreign corporation seeking a
mortgage company license must
qualify to do business in Mississippi.
Officers, directors, owners, partners,
members, 25% or greater
shareholders, and those actively
engaged in daily operations of the
applicant must provide fingerprint
cards. Written approval required for a
licensee to open a branch office.
Advance permission of regulator
required for change of control.
Written notice must be given of
change in name or location of the
business. Notice must be given when a
registered loan originator changes his
employer. Civil penalty up to $500 per
violation may be imposed for
noncompliance with licensing law.
Regulatory Agency
Banking and Consumer
Finance Department
Mortgage Lending Division
501 N. West Street
901 Woolfolk Building
Suite A
P.O. Drawer 23729
Jackson MS 39225-3729
(601) 359-1031
(601) 359-3557 (fax)
www.dbcf.state.ms.us
Branch office
application fee =
$100. Branch
office license
renewal fee = $25.
Change of control
application fee =
$750. Change of
name or address
filing fee = $100.
49 Fees must be paid by cashier’s check or money order; no personal or company checks accepted (see instructions to license application).
50 Per Department of Banking website (visited 7/16/04), new regulations are scheduled to be adopted 8/11/04; see http://www.dbcf.state.ms.us/documents/mortgage/regs04.pdf
51 Clerical employees are not considered loan originators. An employee, for the purpose of registration, can include a W-2 employee or an independent contractor. A loan originator may not work for more than one licensee simultaneously. The loan originator must work from the office for which he is registered; and his registration will not be approved if his residence address is more than 100 miles from the address of the licensee’s office at
which he is registered.
52 In lieu of the 2 years of experience, the applicant can take an examination approved by the Department of Banking, on the subject of mortgage lending.
all_states.DOC
May 2004
MISSOURI – MORTGAGE BROKER AND LOAN ORIGINATOR LICENSING
Licensing Law
License
Required?
and Rules
Mortgage Brokers
License Act, Mo.
Rev. Stat.
§443.800 et seq.
See also
administrative
rules of the
Division of
Finance, Missouri
Code of State
Regulations (Mo.
CSR) Tit. 4, Div.
140, Ch. 30.
Yes, if the person
is engaged in
helping an
investor, entity or
borrower to obtain
a real estate loan
on Missouri
residential
property.
N/A. A person employed
or contracted by a licensed
mortgage broker to assist
in the performance of
activities regulated by the
mortgage broker licensing
law is exempt from
licensing.53 Such an
employee may act only for
one licensee at a time.
Independent agents who
are compensated in any
manner for regulated
activities must be
identified on the license
application (see question 6
of license application).
Experience
Required
for
Brokers
None (but
resume of
education
and
employment
must be
provided on
license
application).
Education
Required
Surety Bond
Required for
Brokers
Minimum
Net Worth
Required?
None (but
resume of
education and
employment
must be
provided on
license
application).
$20,000 (may
be substituted
by an
irrevocable
letter of credit);
if the licensee
has a bond for
$100,000, he is
exempt from
the requirement
to file an audit
report at the end
of each of its
fiscal years.
Mo. Rev. Stat.
§443.851.
$25,000
(alternatively,
license
applicant can
document that
he meets the
HUD net worth
requirement).
Sole proprietors
must provide
individual
financial
statement;
business
entities must
provide
business
financial
statement.
In-State
Office
Required?
(Bricks &
Mortar)
Duration of
License &
License
Renewal
Dates
Yes, every
licensed
mortgage
broker must
maintain at
least 1 full
service office in
Missouri. Mo.
Rev. Stat.
§443.857.
Licenses expire
on the first
anniversary of
their issuance
and every 2
years thereafter.
Renewal is due
60 days before
license expires.
License Related
Fees
Comments
&
Other
Regulatory Agency
License investigation
fee (non-refundable)
= $300. Annual
license fee = $300.54
Branch offices are not separately
licensed, but the addresses of
Missouri branch offices are
listed on the application.
Mortgage broker must apply for
authority to open additional
offices. Fictitious names used
must be filed with secretary of
state’s office. Licensees are
requested to notify the regulator
of changes in information
provided on initial license
application form. Changes of
name or address must be
provided at least 10 days in
advance of the change. Changes
of officers or management must
be provided within 30 days.
Change of control notice must
be filed 45 days in advance.
License applicant must disclose
ownership of related business
(5% or greater ownership) such
as title company, appraiser, etc.
Criminal background checks
may be ordered. Failure to
obtain a mortgage broker license
is a Class C felony. Mo. Rev.
Stat. §443.810.
Division of Finance
Harry S. Truman Building
301 West High Street
Room 630
P.O. Box 716
Jefferson City MO 65102
(573) 751-3242
(573) 751-9192 (fax)
www.ecodev.state.mo.us/finance
Renewal fee = $600,
of which $300 is due
when the license is
renewed and the
other $300 is due one
year later.
Fine for late renewal
of license = $500 for
first 30 days + $1,000
for each month
thereafter.
Fee to file notice of
change of officers,
managers, licensee
name or office
address = $50.
Fee to file notice of
intention to open
additional fullservice office = $10.
53 Exempt persons are requested to file a letter with the Division of Finance, setting forth their exempt status and the basis of the exemption. Mo. CSR tit. 4 §140-30.120(3).
54 Per instructions to application form, http://www.ded.mo.gov/regulatorylicensing/divisionoffinance/pdfs/mtgbrokapp.pdf, (DOF-2002) viewed 7/16/04.
all_states.DOC
May 2004
MONTANA – MORTGAGE BROKER AND LOAN ORIGINATOR LICENSING
Licensing Law
License
Required?
and Rules
Montana
Mortgage Broker
and Loan
Originator
Licensing Act,
Mont. Code §329-101 et seq.
(amended by Ch.
516, Laws of
2003).55
See also, Rules of
the Department of
Administration.
Yes, effective
9/1/2004. (License
applications may
be made on or
after July 1, 2004.)
APPLICATIONS
FOR NEW
LICENSES NOT
ACCEPTED
DURING
MONTHS OF
MAY AND JUNE
BECAUSE OF
VOLUME OF
RENEWALS
DURING THOSE
MONTHS. Rule
2.59.1704(8).
separately licensed. A loan
originator may transact
business only for his
employing mortgage
broker. An originator’s
license is maintained by
the mortgage broker
employer at its main
office; a copy is displayed
at the office where the
originator principally
transacts business. If a loan
originator’s employment is
terminated, the broker
must return the originator’s
license to the regulator
within 5 business days.
The license may be
transferred to another
mortgage broker within 6
months. An originator
license not transferred
within 6 months of
termination of employment
is canceled. Mont. Code
§32-9-116.
Table funding
requires a license.
Rule 2.59.1708.
Experience
Required for
Brokers
3 years’
experience for
mortgage
broker license;
6 months’
experience for
loan officer
license, plus
exam.56 Work
experience must
be in a “related
field.”57
Education
Required
12 hours of
continuing
education per
license year, for
both mortgage
brokers and
loan
originators. The
continuing
education year
runs from June
1 to May 31.
Rule 2.59.1704.
A 10-year
resume of each
principal
officer, director,
partner and
member is
required with
the license
application.
Surety
Bond
Required
for
Brokers
Yes, $25,000
(N/A to loan
originators).
Mont. Code
§32-9-123.
Minimum
Net Worth
Required?
In-State Office
Required?
(Bricks &
Mortar)
Duration of
License &
License
Renewal
Dates
No
Yes. A licensee
must maintain at
least 1 physical
office located in
Montana either on
its own or in
conjunction with
another licensee in
Montana. Each
office location
must have at least
one phone line.
Mont. Code §329-121.
1 year licenses
expire on June
30. Renewal
fee due on or
before May 31.
Residence may be
used as business
office if use
complies with
zoning laws and
regulations. Mont.
Code §32-9-115.
License Related
Fees
$500 nonrefundable
application fee for
mortgage broker;
$400 for loan
originator, plus
fingerprint
processing fee of
$32 for each
person required to
provide
fingerprints.
For financial
examination or
audit of a licensee,
a fee of $300 per
day for each
examiner applies.
Mont. Code §329-130.
Comments
&
Other
Out of state applicants for mortgage
broker license must provide evidence
of qualification to do business in
Montana. Organizational documents
must be provided with license
application if applicant is not an
individual. Organizations applying for
mortgage broker licenses must
identify a “designated manager”
responsible for operating the business.
If applicant uses a trade name or
assumed name, it must be registered
with the secretary of state. Applicant
must identify agent for service of
process in Montana. Licensed
mortgage brokers must pay state
income tax on all income earned in
Montana. Mont. Code §32-9-121.
Monetary penalties for acting as
broker without license from $5,00020,000. Acting as originator without
license is misdemeanor, penalty from
$250-1,000, plus jail 90 days to 1
year.
Regulatory Agency
Montana Department of
Administration
Division of Banking &
Financial Institutions
301 South Park Suite 316
P.O. Box 200546
Helena, MT 59620-0546
(406) 841-2920
(406) 841-2930 (fax)
www.discoveringmontana.co
m/doa/banking
55 "Mortgage broker" means a person or entity that acts as an intermediary between a borrower and a lender, for a fee, to obtain financing for the borrower where the loan is secured by a 1-4 family residential dwelling. A "loan originator" is a licensed individual employed by a mortgage broker to assist borrowers by originating residential loans. Mont. Code §32-9-103. Licensing law does not apply to those engaged solely in commercial lending.
Mont. Code §32-9-104.
56 Exam covers: (a) knowledge of Montana licensing law; (b) knowledge of federal and state disclosures and borrower protections; (c) the ability to read, understand, and explain appraisal basics, credit reports, and title commitments; and (d) the ability to evaluate credit, calculate debt-to-income ratio, calculate loan-to-value ratios, and complete a basic loan application.
57 A person acting as a mortgage broker on or before 12/31/02 is not subject to the experience and education requirements. Mont. Code §32-9-111.
all_states.DOC
May 2004
NEBRASKA – MORTGAGE BROKER AND LOAN ORIGINATOR LICENSING
Licensing Law
License
Required?
and Rules
Mortgage Bankers
Registration and
Licensing Act,
Neb. Rev. Stat.
§45-701 et seq.58
Yes, if the person
for compensation
directly or
indirectly makes,
originates,
services,
negotiates,
acquires, sells or
arranges for 10 or
more mortgage
loans in a calendar
year.
N/A (an employee of a
licensed mortgage banker
is exempt from licensing).
Likewise, independent
agents for licensees are
exempt if there is a written
agreement between the
mortgage banker and its
agent stating that the agent
acts exclusively for that
mortgage banker in the
mortgage business.
Experience
Required for
Brokers
None
Education
Required
None
Surety
Bond
Required
for
Brokers
$50,000
Minimum
Net Worth
Required?
In-State Office
Required?
(Bricks &
Mortar)
No
No
Duration of
License &
License
Renewal
Dates
Licenses are
valid from the
date of their
issuance until
the following
March 1.
Thereafter they
are renewable
annually by
March 1.
License Related
Fees
$300 license
application fee.
$100 annual
license renewal
fee.
Comments
&
Other
Licensees (called mortgage bankers
whether they are engaged in mortgage
banking or mortgage brokering) must
appoint an agent for service of process
in Nebraska. Licenses are not
transferable. Branch offices are not
separately licensed. Acting as a
mortgage banker without a license is a
Class II misdemeanor (but the lien of
the mortgage loan is not affected).
Regulatory Agency
Nebraska Department of
Banking and Finance
Division
P.O. Box 95006
Lincoln NE 68509
(402) 471-2171
(402) 471-3062 (fax)
www.ndbf.org
58 The licensing law applies to loans on 1-4 family owner-occupied dwellings, not other types of mortgage loans.
all_states.DOC
May 2004
NEVADA – MORTGAGE BROKER AND LOAN ORIGINATOR LICENSING
Licensing Law
License
Required?
and Rules
Mortgage Brokers
and Mortgage
Agents Act, Nev.
Rev. Stat.
§645B.010 et seq.
See also
administrative
regulations
affecting mortgage
brokers at Nev.
Admin. Code
(NAC) §645B.001
et seq.
Yes, if the person
holds himself out
as an agent for a
person attempting
to obtain a
mortgage loan, or
as an agent for any
person who has
money to lend for
mortgage loans, or
holds himself out
as able to make
loans, but or sell
notes secured by
mortgages, or
offers for sale any
Nevada security
exempt from
registration under
state or federal
law. Nev. Rev.
Stat. §645B.0127.
“Mortgage agents” (loan
officers) must be registered
by their employing
mortgage brokers. A
mortgage agent is a person
employed by or contracted
by a licensed mortgage
broker to conduct regulated
activities (see column at
left for description of
regulated activities). The
Commissioner of
Mortgage Lending
investigates the
background and experience
of mortgage agents, but
mortgage brokers are
responsible for the actions
of their mortgage agents. 59
Registration of mortgage
agents is accomplished by
identification of them on
the mortgage broker’s
license application. A
mortgage agent cannot
work for more than 1
mortgage broker
simultaneously. Nev. Rev.
Stat. §645B.450.60
Experience
Required for
Brokers
Mortgage
broker must
have at least 2
years of
verifiable
experience in
mortgage
lending and
knowledge of
generally
accepted
accounting
principles. In
addition, the
mortgage
broker must
designate a
“qualified
employee” for
each licensed
location and
this person
must be of good
character &
without prior
convictions of
mortgage laws.
Education
Required
A mortgage
broker must
complete at
least 10 hours
of continuing
education
during the 12
months prior to
license
expiration.61
Surety
Bond
Required
for
Brokers
No
Minimum
Net Worth
Required?
In-State Office
Required?
(Bricks &
Mortar)
Duration of
License &
License
Renewal
Dates
No
Yes (per item 3 of
the application -indicating
[Nevada] “location
must be confirmed
before a license
can be issued.”)
Licenses expire
annually on
May 31;
renewal fee is
$500 for the
principal office
and $100 for
each branch.
Late renewals
subject to $200
reinstatement
fee.
Exemption
certificates are
renewed
annually;
renewal fee is
$100. Nev.
Rev. Stat.
§645B.050.
License Related
Fees
$1,500 nonrefundable
application fee for
mortgage broker’s
principal office, +
$40 fee for each
branch office. $70
fee for registering
each mortgage
agent. (This fee
must come from
the employing
mortgage broker
not from the
individual
mortgage agent or
loan officer.)
Annual license fee
is $1,000 for the
principal office
and $60 for each
branch.
Persons exempt
from licensing
must file
exemption request
with fee of $200.
Comments
&
Other
A mortgage broker license application
must include organizational
documents of the applicant, a general
business plan, a manual of policies
and procedures, underwriting
standards and identification of the
applicant’s mortgage agents (by name,
date of birth, social security number,
and address). A person seeking a
mortgage broker license must affirm
that he is not subject to court-ordered
child support payments.62 History
record, and personal and financial
history record required for each
principal, partner, officer, trustee and
director of the business who owns
25% or more of the applicant.
Corporate applicant must provide
evidence of its qualification to do
business in Nevada (per item 9 of the
application form). Notice of specified
events (such as change of control,
management, or principal employees)
must be given to the Commissioner of
Mortgage Lending. Violation of the
licensing law is a misdemeanor;
violation of the trust account
provisions of the law is either a
misdemeanor or a felony.
Regulatory Agency
Division of Mortgage
Lending
Las Vegas Office
3075 E. Flamingo #104A
Las Vegas NV 89121
(702) 486-0780
(702) 486-0785 (fax)
http://mld.nv.gov/
59 The employing mortgage broker must make a reasonable background investigation of the mortgage agents he employs or contracts with, and must adopt procedures for the supervision of the mortgage agents. Nev. Admin. Code §645B.310. If a mortgage agent’s employment or contract is terminated, the mortgage broker must notify the Commissioner of Mortgage Lending within 3 days and send the terminated mortgage agent’s license or
license number to the Commissioner with an explanation of the termination. Nev. Rev. Stat. §645B.450.
60 Registration of a mortgage agent is valid for only the particular location at which the agent is employed; either the licensed principal Nevada office or a branch. A mortgage agent cannot be registered with more than 1 office of the licensee (see Memorandum from L. Scott Walshaw dated May 1, 2000, to “All Mortgage Brokers,” regarding “Registering Mortgage Agents”).
61 Commissioner of Mortgage Lending has proposed amendment to administrative rules (NAC §645B) on education (hearings were held in April and May 2004); the amendments would specify the requirements for approved course providers, identify the content of approved courses (to include federal and state laws, law and ethics), provide standards for credit for education courses and the like. See
http://mld.nv.gov/Documents/List%20of%20changes%20to%20LCB%20645B.pdf (visited 6/16/04).
62 Commissioner of Mortgage Lending may revoke the license of a mortgage broker who becomes subject to court-ordered child support. Nev. Rev. Stat. §645B.680.
all_states.DOC
May 2004
NEW HAMPSHIRE – MORTGAGE BROKER AND LOAN ORIGINATOR LICENSING63
Licensing Law
License
Required?
and Rules
Nondepository
First Mortgage
Bankers and
Brokers Act, N.H.
Rev. Stat. Ann.
§397-A:1 et seq.
See also
regulations of the
Department of
Banking, N.H.
Code Admin.
Rules Ban 2400,
2500.
Yes, if the person
for compensation,
either directly or
indirectly acts as
intermediary,
finder or agent of
lender or borrower
to negotiate,
arrange, find or
procure first
mortgage loans or
commitments for
such loans; offers
to serve as agent
for any person
attempting to
obtain a residential
first mortgage
loan; or offers to
serve as an agent
for any person
with money to
lend for residential
first mortgage
loans.
An “originator” is defined
in 2003 amendments to the
Nondepository First
Mortgage Bankers and
Brokers Act as an
individual employed or
retained by a mortgage
banker or broker who, for
compensation, negotiates,
solicits, arranges, or finds a
mortgage loan.
Originators must be
identified (by name, phone
number, partial social
security number and start
and end date of
employment) on the
employer’s license
application.64 N.H. Rev.
Stat. Ann. §397-A:5(II).
An originator may not act
for more than one licensee
simultaneously. N.H. Rev.
Stat. Ann. §397-A:1(IX).
Experience
Required for
Brokers
None specifically
required, but
experience of
officers, senior
managers and
New Hampshire
branch managers
must be detailed
on the license
application.
Education
Required
None
Surety
Bond
Required
for
Brokers
$20,000
Minimum Net
Worth
Required?
None for brokers
(but banker/broker
licensees must
have $100K
minimum net
worth). “Financial
integrity” must be
documented in the
license application
(through financial
statements). (See
question 14 on the
license
application,
revision of 11/03.)
In-State
Office
Required?
(Bricks &
Mortar)
No
Duration of
License &
License
Renewal
Dates
License year
runs from
January 1 to
December 31.
Licenses must
be renewed
annually by
12/1.
License Related
Fees
Mortgage broker
license application
fee = $250 for
main office + $250
for each branch.65
Annual license
renewal fee =
$250.
Year-end
assessment is
based on total
dollar amount of
NH loans made or
brokered by the
licensee compared
to the total dollar
amount made or
brokered by all
NH licensees in
the period.
Comments
&
Other
License applicants whose principal
place of business is outside New
Hampshire must appoint an agent for
service of process in the state. N.H.
Rev. Stat. Ann. §397-A:6(II). Foreign
corporations must be qualified to do
business in New Hampshire.66 When
a license is surrendered, the licensee
must publish notice of that fact in the
newspaper. Licensees must notify
regulator of certain events including
change of control, location,
management, filing for bankruptcy,
enforcement actions, etc. Officers,
directors, 10% or greater shareholders
and senior managers must sign release
for credit report, tax records, criminal
and background check.67 Penalty for
violation of the licensing law by an
individual is imprisonment up to 1
year, fine of up to $2,000 or both.
Violation by a corporation is an
unclassified felony subject to fine up
to $100,000. Commissioner of
Banking may also impose
administrative fine up to $2,500 per
violation.
Regulatory Agency
New Hampshire Banking
Department
64B Old Suncook Road
Concord NH 03301-5127
(603) 271-3561
(603) 271-1090 (fax)
www.state.nh.us/banking/
63 This chart reflects the requirements applicable to brokers of residential first mortgage loans under the Nondepository First Mortgage Bankers and Brokers Act, N.H. Rev. Stat. Ann. §397-A:1 et seq. Second mortgage loans are regulated under the Second Mortgage Home Loans Act, N.H. Rev. Stat. Ann. §398-A:1 et seq. (a separate law, not discussed in this chart).
64 The list of originators may also be filed electronically, per the website of the Department of Banking (visited 7/13/04).
65 The principal office is licensed regardless of where it is located; branches are licensed only if they are in New Hampshire (per license application instructions, revision dated 11/03).
66 See question 7(B) on application form dated 11/03.
67 The release is not applicable to officers, directors and shareholders of publicly held corporations.
all_states.DOC
May 2004
NEW JERSEY – MORTGAGE BROKER AND LOAN ORIGINATOR LICENSING
Licensing Law
License
Required?
and Rules
Licensed Lender
Act, N.J. Rev.
Stat. §17:11C-1 et
seq. See also
regulations of the
Department of
Banking, N.J.
Admin. Code
§3:1-16.1 to 3:116.11, 3:2-1.1 to
3:2-1.9, 3:15-1.1
to 3:15-12.4.
Yes, if the person
for compensation
directly or
indirectly
negotiates, places
or sells for others
residential first
mortgage loans in
the primary
market.
Solicitors must be
registered with the
Department of Banking.
They are defined in the law
as persons not licensed as
mortgage bankers or
mortgage brokers who are
employed by a licensee to
accept loan applications or
assist borrowers to
complete loan applications,
and whose compensation is
based on the dollar amount
or volume of loan
applications or closing
activity. A loan solicitor
may be employed by only
1 licensee at a time; if his
employment changes, his
registration certificate is
returned to the regulator.
Experience
Required for
Brokers
None expressly
required, but
licensee must
pass a test (see
next column).
Education
Required
Applicants
must pass a test
on federal and
state laws on
mortgage
lending and
brokering, New
Jersey real
estate law,
RESPA,
ECOA, and
Truth in
Lending, plus
basic
knowledge of
mortgage
documents.68
Surety
Bond
Required
for
Brokers
$100,000
Minimum
Net Worth
Required?
In-State Office
Required?
(Bricks &
Mortar)
Duration of
License &
License
Renewal
Dates
$50,000
Yes, a licensee
must maintain a
place of business
in NJ. If more
than one office is
maintained, one
must be identified
as the principal
office. A
residence is not a
suitable place of
business unless the
office area is
separate from the
residential area
and the office is
accessible to the
public by a
separate entrance.
“Executive office
suite” is not
considered a
suitable main or
branch office.69
Mortgage
broker licenses
(including
branch licenses)
are issued for
the period
beginning July
1 of an oddnumbered year
through June 30
of the best oddnumbered year.
License Related
Fees
License
application fee for
main office of sole
proprietorship,
corporation or
entity = $300.
License
application fee for
branch office =
$200.
Biennial license
fee = $1,400. 70
Biennial renewal
fee = $1,200.
(Main and branch
offices.)
Loan solicitor
registration fee =
$100.71
Processing fee for
change of name or
address = $75.
Fee for processing
change of control
application =
$100.
Comments
&
Other
transferable or assignable. Foreign
corporations must qualify to do
business in NJ as a condition of
licensing. If trade name is used, it
must be filed with NJ secretary of
state. A corporation is licensed
through one of its officers who
holds an individual mortgage
broker license. If the individual
licensee representing a corporation
ceases his employment with that
corporation, the regulator must be
notified and another qualified
individual appointed. Other
changes that must be reported
include change of address, name,
etc. Sole proprietors must answer
questions on court-ordered child
support. Conduct prohibited by the
licensing law is punishable by fine
up to $5,000; a willful violation is a
crime of the 3rd degree.
Regulatory Agency
Department of Banking and
Insurance
Division of Banking/Licensing
Services Bureau
20 West State Street
P.O. Box 040
Trenton NJ 08625-0040
(609) 292-7272
(609) 777-0107 (fax)
www.njdobi.org
68 Test scheduling information is sent to the license applicant only after the application is filed with the Department of Banking. Test materials are provided with the scheduling form, but preparation courses are private and not sponsored or endorsed by the regulator.
69 Per revised instructions to license application, version dated 5/04, viewed on website on 7/13/04.
70 If application filed during the 1st 12 months of the 1st year, the full fee is due; if filed during the 2nd 12 months of the 2-year license period, fee is pro-rated to $700 for a single authority (e.g., mortgage broker license only).
71 The solicitor registration fee must be paid by check of the employer mortgage broker, not by the solicitor.
all_states.DOC
May 2004
NEW MEXICO – MORTGAGE BROKER AND LOAN ORIGINATOR LICENSING
Licensing Law
License
Required?72
and Rules
Mortgage Loan
Companies and
Loan Brokers Act,
N.M. Stat. Ann.
§58-21-1 et seq.
See also
regulations of the
Financial
Institutions
Division, 12
NMAC Ch. 19.
Yes, if the person
acts as a finder or
agent of a lender
or borrower for
purposes of
procuring a
mortgage loan.
N/A -- an entity licensed as
a mortgage broker is not
required to register or
license its loan originator
employees.
Experience
Required for
Brokers
None
Education
Required
None
Surety
Bond
Required
for
Brokers
$25,000
Minimum
Net Worth
Required?
No, but
financial
statements
must be
submitted
with
application
for
registration
certificate.
In-State
Office
Required?
(Bricks &
Mortar)
No
Duration of
License &
License
Renewal Dates
A mortgage broker
registration
certificate is valid
for 12 months
following its
issuance. Renewal
must be filed at
least 30 days
before the
registration
expires.
License Related
Fees
Initial registration
fee = $400.
Renewal
registration fee =
$300.
Fee for late filing
of renewal = $10
per day.
Fee for filing
notice of change
of name or address
= $50.
Comments
&
Other
Separate license applications must be
filed for each branch office. 12
NMAC 12.19.8.8(A)(2). Changes to
information provided in an application
for a registration certificate must be
noted on renewal application.
Application for registration must
include credit reports on the applicant
(or its principal officers, if applicant is
a corporation). Failure to obtain a
registration if one is required is
subject to a penalty up to $5,000 and
up to 18 months in jail.
Regulatory Agency
New Mexico Regulation and
Licensing Department
Division
2550 Cerrillos Road
Santa Fe NM 87505
(505) 476-4885
(505) 476-4670 (fax)
www.rld.state.nm.us
72 In New Mexico, a license is referred to as a “registration certificate.” (See “Application for Registration Certificate as a Mortgage Loan Company or Loan Broker.”)
all_states.DOC
May 2004
NEW YORK – MORTGAGE BROKER AND LOAN ORIGINATOR LICENSING
Licensing Law
Licensed Mortgage
Bankers Act, N.Y.
Banking Law §590.
See also regulations
of the New York
Banking Department,
Superintendent’s
Regulation Part 410
(“Mortgage Bankers:
Licensing
Requirements;
Mortgage Brokers:
Registration
Requirements”).
License
Required?73
Originator
Licensing and
Rules
Experience
Required for
Brokers74
Education
Required
Yes, if the person is
engaged in the
business of soliciting,
processing, placing
or negotiating
mortgage loans for
others, or offers to do
so.
N/A (employees
of a registered
mortgage brokers
are not required to
be individually
registered), but a
list of the
mortgage broker’s
W-2 employees
must be provided
to the Banking
Department with
the application for
registration.
Licensed real
estate salespersons
must have 2 years
of active
participation in the
mortgage
brokerage
business. If
applicant has 2
years of credit
analysis or
underwriting
experience with an
exempt
organization, the
duties of the
employment must
be described on
the registration
application.
Otherwise,
applicant must
have “other
relevant business
experience or
education.”
Applicants for
registration
with relevant
business
background or
education must
describe that
background on
the application
in detail,
including duties
of employment
and specific
courses taken
with dates of
completion.
Surety Bond
Required for
Brokers
Effective July
1, 2004, bond
depends on
number of NY
applications,
ranging from
$10K minimum
bond (0-24
applications) to
$100K
maximum (600
applications or
more).75
Pledged deposit
account may be
used in lieu of
the surety bond.
Minimum
Net Worth
Required?
None
specifically
required but
applicant for
registration
must be
“financially
responsible.”
In-State
Office
Required?
(Bricks &
Mortar)
No
Duration of
License &
License
Renewal
Dates
Registrations
are renewed
annually before
December 15.
License Related
Fees
Comments
&
Other
Investigation fee: $500.
Annual registration fee:
$500 (if issued after
June 30, $250).
Applicant for registration as a
mortgage broker (provided to the
agency in duplicate) must provide
fingerprints (applies to executive
officer, director and 10% or greater
shareholders of a business entity),
credit report and consent to a
background investigation.76
Foreign corporations must qualify
to do business in NY. Additional
full service branch offices may be
applied for by letter request to
Banking Department. Mortgage
broker registration may be placed
on “inactive” status upon request.
Registrations are not transferable;
change of control, officers,
directors and management must be
reported to the Banking
Department. Superintendent’s
Regulation Part 410 (§410.7).
Failure to obtain a mortgage broker
registration if one is required is a
Class A misdemeanor;
superintendent of banks may also
impose a fine up to $5,000 for each
violation.
Full service branch
annual fee = $500.
Loan solicitation branch
annual fee = $250.
Fingerprint card
processing fee = $74.
(Must be paid by
separate certified check,
bank check, or money
order.)
Fee for request for
additional full-service
branch = $250.
Late fee for late renewal
of registration = $100.
Regulatory Agency
New York Banking
Department
Mortgage Banking
Division
One State Street
New York NY 10004
(212) 618-6681
(212) 709-3520 (fax)
www.banking.state.ny.us
73 Mortgage brokers are “registered” with the Banking Department, rather than “licensed.” “Licensed” is the term used for mortgage bankers under the Licensed Mortgage Bankers Act.
74 Licensed NY real estate brokers and NY attorneys are not subject to the experience and education requirements. See Superintendent’s Regulation Part 410 (§410.3(b)(1)).
75 0-24 applications, $10K; 25-99 applications: $25K; 100-299 applications: $50K; 300-599 applications: $75K; 600+ applications: $100,000. See http://www.banking.state.ny.us/mb040608.htm (viewed 7/20/04).
76 Application form for registration last revised 6/04. See http://www.banking.state.ny.us/mbd03.pdf
all_states.DOC
May 2004
NORTH CAROLINA – MORTGAGE BROKER AND LOAN ORIGINATOR LICENSING
Licensing Law
License
Required?
and Rules
Mortgage Lending
Act, N.C. Gen.
Stat. §53-243.01 et
seq. See also
administrative
rules of the
Commissioner of
Banks, N.C.
Admin. Code tit.
4, ch. 3M
(“Mortgage
Lending”).
Yes, if the person
for compensation
directly or
indirectly accepts
or offers to accept
mortgage loan
applications,
solicits mortgage
loans, negotiates
the terms of
mortgage loans,
issues loan
commitments or
rate-lock
guarantees, or
table funds
mortgage loans.
Individual loan officers
employed by licensed
mortgage brokers must be
individually licensed and
cannot be employed
simultaneously by more
than 1 mortgage broker or
lender.77
Experience
Required for
Brokers
Applicant for a
mortgage
broker license
(or its principal
officer,
manager or
control person)
must have at
least 3 years’
experience in
residential
mortgage
lending.78
Education
Required
Loan officers
must complete
a mortgage
lending
fundamentals
course with at
least 8 hours of
classroom
education, and
pass a written
exam.79
Annually, loan
officers must
complete 8
hours of
education as a
condition of
license renewal.
Surety
Bond
Required
for
Brokers
$50,000
Minimum
Net Worth
Required?
In-State Office
Required?
(Bricks &
Mortar)
Duration of
License &
License
Renewal
Dates
No
Yes, a licensee
must have a place
of business in NC
where he/she can
meet with
potential loan
applicants; it must
be at least one
enclosed room.
Licenses expire
June 30
annually.
Failure to
renew timely
results in late
fee of $250.
License Related
Fees
Initial mortgage
broker and
exclusive
mortgage broker
non-refundable
application &
license fee =
$1,000 + $100 for
each branch office.
License renewal
fee = $500 for
mortgage broker
and exclusive
mortgage broker,
$100 for branch
office.
Comments
&
Other
Commissioner of Banking may
conduct criminal history check on
license applicants; applicants are
required to provide fingerprints.
assignable; change of control requires
advance permission of the
Commissioner of Banks. Change of
location requires notice (15 days after
the change). Branch offices are
separately licensed and must be under
the control of a person with the
required 3 years’ experience;
designated branch manager must be a
licensed loan officer (per instructions
to license application). Change of
branch manager must be reported.
Regulatory Agency
Office of the Commissioner
of Banks
4309 Mail Service Center
Raleigh NC 27699
(919) 733-3016
(919) 733-6918 (fax)
www.banking.state.nc.us/
Loan officer
application fee =
$50. Annual
license renewal =
$50.
77 The licensed mortgage broker must file with the Commissioner of Banks a list of all loan officer employees.
78 License applicant without the required 3 years’ experience may be licensed as “exclusive mortgage broker” if he completes 40 hours of classroom education in residential mortgage lending and passes an exam; acts as a mortgage broker for a licensed or exempt mortgage banker whose agent he is and who is responsible for him; is compensated on a basis that is not dependent on the loan amount or loan terms; and will not handle borrower or
third-party funds in connection with brokering or closing loans. N.C. Gen. Stat. §53-243.05(c)(1a).
79 The exam consists of 60 questions; 48 must be answered correctly (80% pass rate). The subject matter includes state laws, federal laws, general concepts, and lending calculations.
all_states.DOC
May 2004
NORTH DAKOTA – MORTGAGE BROKER AND LOAN ORIGINATOR LICENSING
Licensing Law
License
Required?
and Rules
Money Brokers
Act, N.D. Cent.
Code §13-04.1 et
seq. See also
regulations of the
Department of
Banking and
Financial
Institutions, N.D.
Admin. Code ch.
13-05-01.
Yes, if the person
advertises or
solicits the right to
find lenders or
provide loans for
persons or
businesses wishing
to obtain funds for
any purpose.
(Therefore, the
law applies to
brokers of
commercial loans,
not only
residential
mortgage loans.)
N/A (individuals identified
in the license application
as authorized to act under
the license are not required
to be separately licensed).
Experience
Required for
Brokers
None
specifically
required by
law, but
Department of
Banking may
review the
“business
experience,
competency and
financial
ability” of
license
applicants.
Education
Required
None
Surety
Bond
Required
for
Brokers
$25,000
N.D. Cent.
Code §1304.1-04.
Minimum
Net Worth
Required?
In-State Office
Required?
(Bricks &
Mortar)
No
No
Duration of
License &
License
Renewal
Dates
Licenses expire
annually on
June 30.
License Related
Fees
$700 nonrefundable
application fee +
$400 initial license
fee.
Annual license
renewal fee =
$200.
Comments
&
Other
Money broker license application
must include names of lending
institutions with which the broker
does business, copies of contracts to
be used by the broker, credit limits,
schedule of the broker’s commissions,
an organizational chart, and
authorization to release credit
information on the broker’s principals.
Changes to information provided on
the license application form must be
reported to the Department of Banking
within 10 days of the change.
Licenses are not transferable.
Regulatory Agency
Institutions
2000 Schafer Street, Suite G
Bismarck, ND 58501-1204
(701) 328-9933
(701) 328-9955 (fax)
www.state.nd.us/dfi
all_states.DOC
May 2004
OHIO – MORTGAGE BROKER AND LOAN ORIGINATOR LICENSING
Licensing Law
Mortgage Broker
Act, Ohio Rev.
Code §1322.01 et
seq. See also rules
of the Department
of Commerce,
Division of
Financial
Institutions,
applicable to
mortgage brokers,
in Ohio Admin.
Code Ch. 1301:8-7
License
Required?
and Rules
Yes, if the person
does one of the
following: (1)
assists buyers in
obtaining loans,
for consideration;
(2) solicits
financial and
mortgage
information from
the public and
provides that
information to a
mortgage broker
for consideration;
or (3) engages in
table-funding or
warehouse lending
origination of first
mortgage loans.
Individual loan officer
employees of licensed
mortgage brokers are
required to be individually
licensed and must pass a
test within 90 days of
approval of the license. A
“loan officer” originates
mortgage loans for
consideration on behalf of
his mortgage broker
employer, or solicits
financial and mortgage
information from the
public for sale to another
mortgage broker. Ohio
Rev. Code §1322.01(E). A
loan officer may not be
employed by more than 1
mortgage broker
simultaneously.
Experience
Required for
Brokers
Operations
manager for a
licensed
mortgage
broker must
have at least 3
years of
appropriate
experience
(e.g., in
mortgage
brokerage or a
financial
institution) and
pass an
examination.
Education
Required
Effective
1/1/03, the
operations
manager and
each licensed
loan officer
must complete
at least 6 hours
of continuing
education in a
calendar year.
Ohio Rev. Code
§§ 1322.052,
1322.041.
Surety
Bond
Required
for
Brokers
$50,000 for
the 1st
licensed
location and
$10,000 for
each
additional
licensed
location.
Minimum
Net Worth
Required?
In-State Office
Required?
(Bricks &
Mortar)
Duration of
License &
License
Renewal
Dates
No
Yes, mortgage
brokers must
maintain a place of
business in Ohio
for the transaction
of business. Ohio
Rev. Code
§1322.02. If the
office is a
residence, zoning
must permit use of
the residence for
commercial
purposes. A photo
of the place of
business must be
provided with the
license
application.
Licenses are
renewed
annually on or
before April 30.
License Related
Fees
Mortgage broker
license application
fee = $350; annual
license fee = $350
per licensed
location.
Loan officer
license application
fee = $100.
Comments
&
Other
Foreign corporations applying for
mortgage broker licenses must be
qualified to do business with the Ohio
secretary of state. Agent for service
of process in Ohio must be
maintained. Each office of the
mortgage broker is separately
licensed. A licensed mortgage broker
must appoint an operations manager
for each location where business is
conducted. Change of operations
manager must be reported to the
Division of Financial Institutions.
Other changes that must be reported
include actions against the licensee or
any loan officer, judgments entered,
conviction of criminal offense, and
termination of employment of a loan
officer. Criminal background checks
are conducted on applicants -including partners, members, sole
proprietors, operations managers and
top 4 officers (per license
instructions). These persons must
provide fingerprints.
Regulatory Agency
Ohio Department of
Commerce
Institutions
77 South High Street
21st Floor
Columbus OH 43215-6120
(614) 728-8400
(614) 644-1631 (fax)
www.com.state.oh.us/ODOC/
all_states.DOC
May 2004
OKLAHOMA – MORTGAGE BROKER AND LOAN ORIGINATOR LICENSING
Licensing Law
License
Required?
and Rules
Mortgage Broker
Licensure Act,
Okla. Stat. tit. 59
§2081 et seq. See
also regulations of
the Department of
Consumer Credit,
Ok. Admin. Code
Title 160, Chapter
55 (“Mortgage
Brokers”).80
Yes, if the person,
for compensation,
makes, negotiates
or offers to make
or negotiate a
residential
mortgage loan.
individually licensed (and
must be at least 18 years
old and U.S. citizen or
lawful alien). On
termination of a loan
originator’s employment,
the mortgage broker must
send the loan originator’s
license to the Department
of Consumer Credit within
three (3) business days.
When transferring to
another company, the loan
originator must complete a
new license application for
the new mortgage broker.
The old license must have
been returned by the
previous employer before
the new loan originator
license will be issued. Ok.
Admin. Code tit. 160:55-310.1(b).
Experience
Required for
Brokers
At least 3 years
of continuous
employment or
business
activity in the
residential loan
industry during
the previous 5
years.81 (For
corporations &
partnerships, an
owner, officer
or director, or
one of the 3
largest
stockholders
can satisfy the
experience
requirement.)
Education
Required
Mortgage broker
must pass a test
before license is
issued.82
Beginning 7/1/06,
continuing
education will be
required for
license renewal.
Rule will be
adopted on
number of hours.
Surety
Bond
Required
for
Brokers
No
Minimum
Net Worth
Required?
No
In-State
Office
Required?
(Bricks &
Mortar)
Duration of
License &
License
Renewal
Dates
Yes.
Okla. Stat. tit.
59 §2085(H).
Licenses are
valid for 1 year
and must be
renewed by
12/31. If
renewal not
received by
12/31, license
may be
suspended. If
not renewed by
1/31 it expires.
License Related
Fees
Application fee =
$750 (for each
office, whether
main office or
branch office).
License fee =
$100. Branch
office license fee =
$100 per year.
Annual license
renewal fee for
main office or a
branch = $100.
Loan originator
license = $50 per
year.
Exam fee = $150.
Comments
&
Other
Licensed mortgage broker must
identify a “responsible individual” in
active management of the licensed
location. This person must be a
resident of Oklahoma. Each office of
a mortgage broker must be separately
licensed. Application for a license
must include evidence the applicant
has opened a trust account and
separate operating account in
Oklahoma. A mortgage broker must
conduct a background check of its
employees and keep the results for at
least 2 years. Licensed mortgage
broker must give 30 days advance
written notice to the regulator of any
change in its ownership or office
location. All licensees must maintain
agent for service of process in
Oklahoma. Foreign corporation
applicants must be qualified to do
business with the Oklahoma secretary
of state.
Regulatory Agency
Department of Consumer
Credit
4545 Lincoln Boulevard
Suite 104
Oklahoma City OK 73105
(405) 521-3653
(405) 521-6740 (fax)
www.okdocc.state.ok.us/
A licensee’s officers,
directors, partners and
members may act under
the entity’s license, but
independent contractors
may not act under the
license unless the
independent contractor has
80
The rules are likely to be amended in the near future, as a result of enactment of H.B. 1503 (Chapter 372, Laws of 2004, effective 7/1/04) because the license duration and the license fees were both changed as a result of
that law, but the administrative rules have not yet been revised to reflect the new statute.
81
In lieu of the 3 years’ experience, the applicant can complete education and testing approved by the Administrator of Consumer Credit.
82
Subjects on the test include the Mortgage Broker Act, arithmetical computations used in the mortgage business, principles of real estate lending, mortgages, deeds of trust and security agreements, etc. Test is offered every
3 months; it may not be taken more than twice in a 12-month period.
all_states.DOC
May 2004
Licensing Law
License
Required?
and Rules
Experience
Required for
Brokers
Education
Required
Surety
Bond
Required
for
Brokers
Minimum
Net Worth
Required?
In-State
Office
Required?
(Bricks &
Mortar)
Duration of
License &
License
Renewal
Dates
License Related
Fees
Comments
&
Other
Regulatory Agency
a separate license.
all_states.DOC
May 2004
OREGON – MORTGAGE BROKER AND LOAN ORIGINATOR LICENSING
Licensing Law
License
Required?
and Rules
Experience
Required for
Brokers
Mortgage
Bankers,
Mortgage Brokers
and Loan
Originators Law,
Or. Rev. Stat.
§59.840 et seq.
See also rules of
the Department of
Consumer and
Business Services,
Division of
Finance, Or.
Admin. Code §§
441-860-0010 et
seq., 441-8650010 et seq.
Yes, if the person
engages for his
own account or for
others, in the
business of selling
real estate paper to
persons other than
financial
institutions or
institutional
buyers, or accepts
funds from
persons other than
institutional
buyers for
investment in real
estate paper, or for
compensation,
directly or
indirectly makes,
negotiates or
offers to make or
negotiate a
mortgage loan.
persons employed by
mortgage brokers, or
acting as independent
contractors for mortgage
brokers, or who negotiate
loan terms with
prospective borrowers.
(Loan originators do not
include persons whose
duties are merely clerical.)
individually registered
with the Department of
Consumer and Business
Services. They must be
individually listed on the
mortgage broker’s license
application.
Mortgage
broker or its
managing
partner,
executive
officer or
individual in
similar position
must have 3
years
experience in
the mortgage or
equivalent
lending
business during
5 years
preceding
applying for a
license.
Education
Required
Loan officers
must complete
a training
course and pass
a test, to be
established by
rule of the
Department of
Consumer and
Business
Services.
Surety
Bond
Required
for
Brokers
Mortgage
broker with 1
Oregon
office,
$25,000.
Additional
offices
increase the
bond by
$5,000 per
office, to a
maximum
bond of
$50,000.83
Minimum
Net Worth
Required?
In-State Office
Required?
(Bricks &
Mortar)
No (but
financial
statements
must be
provided
with the
license
application)
No
Duration of
License &
License
Renewal
Dates
Licenses
renewable
every 2 years.
Renewal is due
30 days before
license expires.
Or. Admin.
Code § 441860-0050.
License Related
Fees
Renewal fee for a
2-year license =
$500 for the main
office, $100 for a
branch office.
(These fees were
increased by rule
on 1/1/04.)
Comments
&
Other
Mortgage broker must notify the
Department of Consumer and
Business Services within 30 days of
hiring or terminating a loan officer.
Employing mortgage broker must
conduct a criminal background check
of each loan officer hired. Or. Admin.
Code § 441-880-0050. The record of
the criminal background check must
be kept for 4 years after the
termination of employment (2 years
after it is conducted if the person is
not employed). A loan officer may
not be employed by more than 1
mortgage broker simultaneously.
Branch offices are separately licensed.
Regulatory Agency
Department of Consumer and
Business Services
Division of Finance and
Corporate Securities
350 Winter Street NE
Room 410
Salem OR 97301
(503) 378-4100
(503) 378-6444 (fax)
www.cbs.state.or.us/external/
dfcs
83 Irrevocable letter of credit may be substituted for the surety bond.
all_states.DOC
May 2004
PENNSYLVANIA – MORTGAGE BROKER AND LOAN ORIGINATOR LICENSING84
Licensing Law
License
Required?
Originator
Licensing and
Rules
Mortgage Bankers
and Brokers and
Consumer Equity
Protection Act, 63
Pa. Stat. Ann. §§
456.301 - 456.314.
Yes, if the person
for consideration,
directly or
indirectly,
negotiates or
places mortgage
loans for others in
the primary
market.85 If the
mortgage broker
closes loans in his
own name, a
lender license (not
broker license) is
required.
Mortgage brokers,
limited mortgage
brokers and loan
correspondents are
all required to be
licensed.
Independent
contractors (i.e.,
persons paid on a
1099 basis, not W2 form) acting for
mortgage brokers
must be
individually
licensed.
Experience
Required for
Brokers
None
specifically
required.
Education
Required
Mortgage
brokers & loan
correspondents:
at least 6 hours/
year.
Limited
mortgage
brokers: at least
2 hours/year.
Surety Bond
Required for
Brokers
Mortgage brokers:
$100K if advance
fees from borrowers
accepted.
Loan
Correspondents:
$100K
Minimum Net
Worth
Required?
In-State
Office
Required?
(Bricks &
Mortar)
Limited mortgage
brokers: None
Yes, at least
one office must
be maintained
as principal
place of
business in
Pa.87 63 Pa.
Stat. Ann.
§456.304(d).88
Loan
Correspondents:
$100K
Limited mortgage
brokers: None86
Duration of
License &
License
Renewal
Dates
Mortgage
broker, loan
correspondent
and wholesale
table funder
licenses renew
annually on
July 1.
License Related
Fees
Mortgage broker:
initial license fee =
$500 for main office
+ $50 for each
branch. Criminal
record check fee =
$10 for each person
investigated. License
renewal fee = $200
for principal place of
business, $25 for
branch office.
Loan correspondent:
$500 for main office
+ $500 for each
branch.
Criminal record
check fee = $10 for
each record.
Comments
&
Other
Foreign corporation applicants
for mortgage broker license must
qualify to do business in
Pennsylvania and maintain agent
for service of process in the
state. Criminal records check is
conducted on all license
applicants (sole proprietors,
managers, partners, corporate
officers). Civil penalty up to
$2,000 per offense may be
imposed for violation of
Mortgage Bankers and Brokers
and Consumer Equity Protection
Act.
Regulatory Agency
Pennsylvania Department of
Banking
333 Market Street
16th Floor
Harrisburg PA 17101-2290
(717) 787-2665
(717) 787-8773 (fax)
www.banking.state.pa.us
Limited mortgage
broker: $250
application fee;
annual renewal fee =
$200.
84 This chart reflects the requirements applicable to brokers of residential first mortgage loans under the Mortgage Bankers and Brokers and Consumer Equity Protection Act, 63 Pa. Stat. Ann. §§ 456.301 - 456.314. Brokers of second mortgage loans are licensed and regulated under the Secondary Mortgage Loan Act, Pa. Stat. Ann. tit. 7 §6601 et seq. (a separate licensing scheme, not discussed in this chart).
85 The mortgage loans to which the licensing law applies are first lien loans on 1-4 family dwellings located in Pennsylvania. The licensing law does not apply to loans made for a commercial purpose. 63 Pa. Stat. Ann. §456.303(c).
86 Limited mortgage brokers may not receive advance fees from prospective borrowers or maintain branch offices.
87 The office must be staffed on a full-time basis by an employee paid on a W-2 wage basis. Books and records must be kept at this office unless permission is granted to keep them elsewhere.
88 A foreign corporation that acts only as a wholesale table funder is not required to have an office in Pennsylvania.
all_states.DOC
May 2004
RHODE ISLAND – MORTGAGE BROKER AND LOAN ORIGINATOR LICENSING
Licensing Law
License
Required?89
Licensed
Activities Law,
R.I. Gen. Laws
§19-14-1 et seq.
See also the
Lenders and Loan
Brokers Act, R.I.
Gen. Laws §1914.1-1 et seq. for
additional laws
applicable to
mortgage brokers.
Yes, if the person
solicits, processes,
negotiates, places
or sells mortgage
loans for others in
the primary
market for
compensation, or
the person is the
nominal
mortgagee in a
table funding
transaction.
Originator
Licensing and
Rules
N/A
Experience
Required for
Brokers
At least 5 years of
experience in the
lending business.
Less than 5 years of
experience may be
adequate if applicant
has education or
background suitable
in the discretion of
the Banking Division
(see p. 4 of license
application form).
Education
Required
None (but
license
application
form indicates
appropriate
education may
substitute for
some of the
required 5 years
of experience in
the discretion of
the Banking
Division).
Surety
Bond
Required
for
Brokers
$10,000,
increased by
$5,000 for
each branch
office.
Minimum
Net Worth
Required?
In-State Office
Required?
(Bricks &
Mortar)
$10,000
No
Duration of
License &
License
Renewal
Dates
Licenses are
continuous but
must be
renewed
annually by
March 31.
Daily penalty of
$25 applies to
late renewals,
maximum
$750.
License Related
Fees
Application
investigation fee =
$275; initial
license fee = $550.
Power of attorney
filing fee = $25.
Annual license
renewal fee is
$550. Fee for lost
or mutilated
license = $100.
Comments
&
Other
Licensees must appoint an agent for
service of process in Rhode Island,
and an agent with authority to endorse
insurance proceeds checks on behalf
of the licensee. The background of
each person managing a licensed
location and all 5% or greater
shareholders is investigated in
connection with the application.
Criminal background check performed
on general manager of the licensee.
Loan broker licenses are not
transferable or assignable. Branch
offices are separately licensed.
Application to change location of a
branch office must include $250
investigation fee. Other changes
(change of name, records location,
etc.) must be reported to Division of
Banking. If office to be licensed is a
residence, zoning must permit the
office use. Violation of the Licensed
Activities Law is a misdemeanor,
punishable by fine up to $1,000, one
year’s imprisonment or both. Civil
money penalties also available for
violations.
Regulatory Agency
Department of Business
Regulation
Division of Banking
233 Richmond Street
Suite 231
Providence RI 02903-4231
(401) 222-2405
(401) 222-5628
www.dbr.state.ri.us/
89 Certain loans are not subject to the licensed activities law, including those made to corporations, joint ventures, partnerships, limited liability companies or business organizations; loans over $25K made to individuals for business or commercial purposes; loans secured by accounts receivable or business inventory; loans made by life insurance companies on the cash surrender value of an insurance policy; certain student loans; loans made to
acquire retail or home installment contracts by investors acquiring such loans from federal bank liquidators or receivers, and others. Users of this chart should review the list of exceptions in R.I. Gen. Laws §19-14.1-10.
all_states.DOC
May 2004
SOUTH CAROLINA – MORTGAGE BROKER AND LOAN ORIGINATOR LICENSING
Licensing Law
License
Required?
Originator
Licensing and
Rules
Licensing
Requirements Act
of Certain Brokers
of Mortgages on
Residential
Property, S.C.
also regulations of
the Department of
Consumer Affairs,
S.C. Code Ann.
Regs. §28-400.
Yes, if the person
is in the business
of soliciting,
processing,
placing or
negotiating
mortgage loans for
others, or offers to
do so. This
includes
acceptance of
applications for
mortgage loans
and assistance in
processing loan
applications, or
negotiating the
terms of mortgage
loans with a lender
on behalf of a
third party.
Employees of
licensed mortgage
brokers are not
required to be
separately licensed,
but the term
“originator” is
significant for other
purposes (see other
columns in this
chart). For example,
effective 1/1/04, a
loan agreement
between a
prospective borrower
and originator must
state that the
originator is the agent
of the borrower and
owes the borrower
the duty of loyalty.
Experience
Required for
Brokers
At least 2 years of
experience working
as an originator is
required as a prerequisite to obtaining
a mortgage broker
license. The term
“originator” means a
person whose
primary job
responsibilities are to
contact borrowers
and inform them of
loan rates, terms and
other aspects of the
mortgage, but a
clerical employee is
not a loan originator.
S.C. Code Ann. §4058-20(14).90
Education
Required
At least 8 hours
of continuing
education
annually. S.C.
Code Ann. §4058-67.91 In
addition,
appropriate
education may
substitute for
part of the
experience
required for an
initial license
(see footnote 1
below).
Surety
Bond
Required
for
Brokers
$10,000
(cash,
securities or
a bond).
S.C. Code
Ann. §40-5840.
Minimum
Net Worth
Required?
In-State Office
Required?
(Bricks &
Mortar)
Duration of
License &
License
Renewal
Dates
None, but
application
for license
must include
affirmation
of financial
solvency. If
no bond
maintained,
$10,000 in
cash or
securities is
required.
Yes, the physical
place of business
must be staffed by
at least 1
employee with
authority to
contract on behalf
of the mortgage
broker; this person
must be authorized
to accept service
of process on the
licensee. The S.C.
place of business
must be open at
least 30 hours a
week from
Monday-Friday.
Licenses
renewable
annually by
September 30.
Penalty of $250
for late
renewals. $100
additional
penalty to
renew an
expired license.
License Related
Fees
Initial license
processing fee =
$200; initial
license fee = $550
(total = $750).
License renewal
fee = $550 + $150
for each branch
office or satellite
location.
Comments
&
Other
Branch offices are separately licensed
(same fees as principal office). Notice
must be given to the Department of
Consumer Affairs in advance of
opening new branches or closing
branches. Penalty of $50-250 if notice
is not given. Violation of the
licensing law is a misdemeanor,
punishable by fine up to $500 and
imprisonment up to 6 months.
Licenses not transferable or
assignable.
Regulatory Agency
South Carolina Department of
Consumer Affairs
Legal Division
3600 Forest Drive, Third
Floor
P.O. Box 5757
Columbia SC 29250-5757
(803) 734-4200
(803) 734-4286 (fax)
www.state.sc.us/consumer/
90 In lieu of the required experience, the license applicant may substitute minimum education of at least 6 hours of coursework in real estate finance, real estate law, or similar. S.C. Code Ann. §40-58-50.
91 If licensee is a corporation or LLC, the education requirement applies to its member, president, CEO or other officer with over 25% ownership.
all_states.DOC
May 2004
SOUTH DAKOTA – MORTGAGE BROKER AND LOAN ORIGINATOR LICENSING
Licensing Law
License
Required?
Mortgage Lender
Business Act, S.D.
Cod. Laws 54-141 et. seq. See also
regulations
applicable to
mortgage bankers
and mortgage
brokers, S.D.
Admin. Code Ch.
20:07:19.
Yes, if the person
acts as an
intermediary in
securing a
mortgage loan, or
places mortgage
loans with
investors for
consideration.
and Rules
N/A
Experience
Required for
Brokers
No
Education
Required
None
Surety
Bond
Required
for
Brokers
No
Minimum
Net Worth
Required?
In-State Office
Required?
(Bricks &
Mortar)
No
No, but resident
agent must be
appointed for
service of process
in South Dakota.
Duration of
License &
License
Renewal
Dates
Licenses are
renewable
annually on
July 1.
License Related
Fees
Mortgage broker
license application
fee = $300; license
renewal fee =
$300.
S.D. Admin. Code
§20:07:19:02
(these amounts
were increased
from $150 each
effective 6/15/04).
Comments
&
Other
Foreign corporation applicants for
licensure must be qualified to do
business with South Dakota secretary
of state. Law requires licensees to pay
state income tax on net income
assignable to South Dakota business.
S.D. Cod. Laws 54-14-6. Penalty for
non-compliance with Mortgage
Lender Business Act is fine of $100 +
up to 30 days’ imprisonment. Doing
business without a license is a Class 2
misdemeanor.
Regulatory Agency
Department of Commerce and
Regulation
Division of Banking
217 1/2 West Missouri
Avenue
Pierre SD 57501
(605) 773-3421
(605) 773-5367 (fax)
www.state.sd.us/drr/reg/bank/
all_states.DOC
May 2004
TENNESSEE – MORTGAGE BROKER AND LOAN ORIGINATOR LICENSING
Licensing Law
License
Required?
Originator
Licensing and
Rules
Residential
Lending,
Brokerage and
Servicing Act,
Tenn. Code Ann.
§45-13-101 et seq.
See also
administrative
regulations of the
Department of
Financial
Institutions, Tenn.
Comp. R & Regs.
Ch. 0180-17.
Yes,92 if the
person in the
regular course of
business, for
consideration,
directly or
indirectly assists a
person in
obtaining a
mortgage loan.93
N/A (the bona-fide
employees of a
licensed mortgage
broker may act under
their employer’s
license).
Experience
Required for
Brokers
Education
Required
None (but
application form
requires disclosure
of business
experience/employ
-ment during past
10 years for all
partners, directors,
officers,
shareholders of
10% or more).
None (but
application form
requires disclosure
of business
experience/employ
-ment during past
10 years for all
partners, directors,
officers,
shareholders of
10% or more).
Surety
Bond
Required
for
Brokers
$90,000 (if
the mortgage
broker does
not make or
service
mortgage
loans).94
Minimum
Net Worth
Required?
In-State Office
Required?
(Bricks &
Mortar)
$25,000 +
additional
$25,000 for
each branch
office in the
state.
No
Duration of
License &
License
Renewal
Dates
Licenses are
renewable
annually on
December 1.
Comments
&
Other
License Related
Fees
Initial application
investigation fee =
$100; initial
license fee = $500
($600 total).
License renewal
fee = $500.
Branch offices are covered by the
main office license and the bond of
the main office also covers branches
located in Tennessee. Licenses are
not transferable or assignable; change
of control and other changes must be
reported to the Commissioner of
Financial Institutions.
Regulatory Agency
Institutions
511 Union Street
Nashville TN 37219
(615) 741-2236
(615) 532-1018 (fax)
www.state.tn.us/financialinst
92 If the mortgage broker is approved by one of the federal housing agencies or secondary market agencies, he may register, rather than obtain a license. The registration fees are lower than the license fees ($100 investigation fee + $100 registration fee). The same net worth requirement applies to registrants as licensees, however.
93 Mortgage loan means a loan secured by 1-4 family owner-occupied property, where the loan is for personal, family or household purposes. Tenn. Code Ann. §45-13-102(6).
94 A letter of credit may be substituted for the surety bond. If used, the letter of credit must be maintained for 3 years following expiration of the license.
all_states.DOC
May 2004
TEXAS – MORTGAGE BROKER AND LOAN ORIGINATOR LICENSING
Licensing Law
License
Required?
and Rules
Mortgage Broker
License Act, Tex.
Fin. Code
§156.001 et seq.
Yes, if the person
receives
applications from
prospective
borrowers for the
purpose of making
1st lien residential
mortgage loans
(however, persons
with merely
clerical
responsibilities are
not required to be
licensed).
A loan officer must have
separate licenses from his
or her employing mortgage
broker. A loan officer’s
license is issued to the
sponsoring mortgage
broker (the employer).
Experience
Required for
Brokers95
18 months of
experience in
mortgage
lending (unless
licensed as a
real estate
broker or
attorney with 3
years of fulltime
experience)
Education
Required96
Mortgage broker:
At least a
bachelor’s degree
in a financerelated area and 18
months’
experience in
mortgage lending,
or be licensed as a
real estate broker,
attorney or have 3
years of full-time
experience in
mortgage lending.
Loan officer:
Either the same
qualifications as a
mortgage broker,
plus 15 hours of
education OR 18
months’
experience as a
loan officer.
Surety
Bond
Required
for
Brokers
No (unless
the broker
does not
have $25,000
net worth, in
which case
the surety
bond is
$50,000).
Minimum
Net Worth
Required?
Mortgage
brokers:
$25,000 (unless
$50K surety
bond is
maintained).97
In-State
Office
Required?
(Bricks &
Mortar)
Yes
Duration of
License &
License
Renewal
Dates
Mortgage
broker licenses
are valid for 2
years; must be
renewed before
the expiration
date.
Loan officers:
None
License Related
Fees
Mortgage broker:
application fee =
$280; recovery
fund fee = $20.
Branch office
license fee = $50.
Loan officer:
application fee =
$155, recovery
fund fee = $20.
FBI background
check fee = $39
for each individual
examined.
Comments
&
Other
Savings and Loan Commissioner
examines criminal background of
license applicants. If a loan officer’s
employment is terminated, his license
becomes inactive and the sponsoring
mortgage broker must notify the
Savings & Loan Commissioner.
Brokers operating under assumed
name must file the assumed name
with the secretary of state or county
clerk. Foreign corporations must
qualify to do business in Texas.
Commissioner may impose fine up to
$2,500 for each day a person is in
violation of the Mortgage Broker
License Act.
Regulatory Agency
Texas Savings & Loan
Department
2601 N. Lamar
Suite 201
Austin TX 78705
(512) 475-1350
(512) 475-1360 (fax)
www.tsld.state.tx.us
95 Commissioner of Savings & Loan can waive experience requirements or education requirements if the applicant has a license issued by another state with requirements substantially equal to those in Texas; Commissioner can also issue provisional license to a person licensed elsewhere for at least 2 years if that person is in good standing with the other licensing agency.
96 In addition to the education, new applicants for mortgage broker and loan officer licenses must take and pass a pre-license test to demonstrate their knowledge of the job. The test certificate is submitted to the Savings & Loan Department with the license application.
97 If the bulk of the mortgage broker’s $25,000 net worth is his investment in the mortgage brokerage, he must submit company financials with the license application (application form, “Important Notice,” page 1).
all_states.DOC
May 2004
UTAH – MORTGAGE BROKER AND LOAN ORIGINATOR LICENSING
Licensing Law
License
Required?
and Rules
Residential
Mortgage
Practices Act,
Utah Rev. Code
§61-2c-101 et seq.
See also
Residential
Mortgage
Administrative
Rules, R 162-202
through R 162209.
Yes, if the person
is engaged in the
mortgage
business, which
means to make or
originate mortgage
loans or to
perform services
related to the
origination or
funding of
residential
mortgage loans.
N/A. Employees of
persons subject to the
Residential Mortgage
Practices Act (including
those licensed under that
law) are exempt from
individual licensing; they
may act under their
employer’s license. Utah
Rev. Code §61-2c-105. If
an entity acts as a
mortgage broker (e.g.,
corporation or partnership),
both the entity and the
person acting as a
mortgage broker must be
licensed (see instructions
on the Real Estate Division
website).99
Experience
Required for
Brokers
Education
Required
None, but a
licensee (or its
“control
person” in case
of a licensed
entity) must
have good
moral character
and be
competent to
conduct the
mortgage
business.
Applicant for a
mortgage
broker license
must pass a test
approved by the
Real Estate
Commission.100
There is no
required
coursework in
advance of the
test; it is “selfstudy.”
Surety
Bond
Required
for
Brokers98
Individuals
licensed as
mortgage
brokers:
$10,000.
Business
entities
licensed as
mortgage
brokers:
$25,000.
Minimum
Net Worth
Required?
In-State Office
Required?
(Bricks &
Mortar)
No
No
Duration of
License &
License
Renewal
Dates
License is valid
for 2 years.
License Related
Fees
$200 licensing fee,
$39 fingerprint
processing fee.
Examination fee =
$75.
License renewal
fee = $200.
Comments
&
Other
Corporations seeking licenses must
qualify to do business in Utah with the
secretary of state. License applicants
must provide fingerprints and submit
to a background investigation. Branch
offices are separately licensed.
Changes such as change of control,
name, address, conviction of crime,
bankruptcy, revocation of license and
similar must be reported to the
Division of Real Estate within 10
days.
Regulatory Agency
Utah Division of Real Estate
Heber M. Wells Building
160 E. 300 South, 2nd Floor
Salt Lake City UT 84111
(801) 530-6747
(801) 530-6749 (fax)
www.commerce.utah.gov/dre
98 Deposit of assets or letter of credit may be accepted in lieu of the surety bond.
99 http://www.commerce.utah.gov/dre/mortlicensing.html, visited 7/12/04.
100 Description of the exam is contained in the Real Estate Divisions December 2003 newsletter at http://www.commerce.utah.gov/dre/Newsletters/MM1203.pdf. There are 2 sections to the exam; both must be passed within 6 months or test must be re-taken. Testing requirement became effective 1/1/04; all licensees must pass test by 1/1/05. An existing licensee’s failure to complete the test by 1/1/05 will result in his license becoming inactive.
all_states.DOC
May 2004
VERMONT – MORTGAGE BROKER AND LOAN ORIGINATOR LICENSING
Licensing Law
License
Required?
and Rules
Vermont Licensed
Lenders Act, Vt.
Stat. Ann. tit. 8
§2200 et seq. See
also administrative
regulations of the
Department of
Banking, Vt. Reg.
B-96-1, B-98-1.
Yes, if the person,
for compensation,
directly or
indirectly
negotiates, places,
assists in
placement or finds
mortgage loans
other than
commercial
mortgage loans, on
real property, for
others.
N/A (partners, officers,
managers and designated
employees named on the
license application may act
as mortgage brokers under
the entity’s license, per
question #25 on the license
application form (version
dated 5/16/2000).
Experience
Required for
Brokers
None
Education
Required
None
Surety
Bond
Required
for
Brokers
$10,000
Minimum
Net Worth
Required?
In-State Office
Required?
(Bricks &
Mortar)
No, but if
investment
securities
represent
25% or more
of the
applicant’s
assets,
financial
statements
for previous
2 years must
be provided
with license
application
(per
application
instructions).
No
Duration of
License &
License
Renewal
Dates
License year is
January 1 to
December 31.
License
renewals due by
December 1.
License Related
Fees
$250 license
application fee +
$250 license
fee.101 Annual
license renewal
fee = $250.
Fee for notice of
change of address
= $100.
Comments
&
Other
Foreign corporation seeking mortgage
broker license must be qualified to do
business in Vermont. Branch offices
are separately licensed. Application
must include the brokerage agreement
to be used with prospective borrowers.
License applicant must certify good
standing with respect to Vermont
taxes. Licenses are not assignable;
notice must be given to Commissioner
of Banking on the occurrence of
events such as change of control,
management personnel, and directors,
change of address. Penalty for failure
to obtain a required license is up to
$1,000. Vt. Stat. Ann. tit. 8
§2215(a)(1).
Regulatory Agency
Department of Banking,
Insurance, Securities and
Health Care Administration
Division of Banking
89 Main Street, Drawer 20
Montpelier VT 05620-3101
(802) 828-3307
(802) 828-3306 (fax)
www.bishca.state.vt.us/
101 The license fee is pro-rated for applications received after September 30 (per instructions to the license application, contained on the agency website at http://www.bishca.state.vt.us/BankingDiv/lenderapplic/PROCED.PDF, visited 7/12/04.
all_states.DOC
May 2004
VIRGINIA – MORTGAGE BROKER AND LOAN ORIGINATOR LICENSING
Licensing Law
License Required?
Originator
Licensing and
Rules
Experience
Required for
Brokers
Virginia Mortgage
Lender and Broker
Act, Va. Code
Ann. §6.1-408 et
seq. See also
regulations of the
Bureau of
Financial
Institutions, 10
Va. Admin. Code
§§5-160-10 et seq.
Yes, if the person
negotiates, places or
finds mortgage loans for
others, or offers to do
so. Per interpretations
of the regulator, a
person engaged as an
intermediary between
borrowers and lenders is
also a broker (such as
processing and
telemarketing
personnel).102
N/A (Bona fide
employees of an
entity licensed as a
mortgage broker
may act under
their employer’s
license. Va. Code
Ann. §6.1-410.)103
None, but applicant
must provide at least 3
business references
attesting to their
character, reputation,
experience and financial
responsibility104 and
description of
experience and business
qualifications of the
applicant and its
members, directors,
officers and
principals.105
Education
Required
Surety Bond
Required for
Brokers
Minimum
Net Worth
Required?
In-State
Office
Required?
(Bricks &
Mortar)
Duration
of License
& License
Renewal
Dates
No
$25,000
No
No
Licenses are
continuous
and remain
in force until
suspended,
revoked or
surrendered.
Va. Code
Ann. §6.1416. Annual
assessment is
made 4/25
each year
and due on
5/25. Va.
Code Ann.
§6.1-420.
License Related
Fees
Non-refundable license
application fee = $500;
annual license fee varies
with volume of loans
originated, with base fee
of $400 + $6.60 for each
Virginia loan brokered
during previous
calendar year.
Branch office license
application fee = $150.
Application fee for
change of control =
$250. Application fee
for change of location =
$150.
Application for
authority to act as
exclusive agent of a
mortgage broker =
$250.
Comments
&
Other
Licenses are not transferable; change
of control requires advance approval
of the Commissioner of Financial
Institutions. Other changes, including
name, address and management
changes, must be reported to the
regulator. Each branch office must
have its own license. Extensive
background and financial information
must be provided on each director,
senior officer, partner, 10% or greater
shareholder and principal of the
applicant.106 Foreign corporation
applicants must be qualified to do
business in Virginia. Trade names
used in mortgage business must be
registered with State Corporation
Commission. Civil penalty for
violation of the Mortgage Lender and
Broker Act is $2,500 per violation.
Each day a person engages in
regulated activity while unlicensed is
a separate violation. Acting without a
license is also a Class 6 felony. Va.
Code Ann. §6.1-429.
Regulatory Agency
State Corporation
Commission
Bureau of Financial
Institutions
1300 E. Main Street
P.O. Box 640
Richmond VA 23218-0640
(804) 371-9690
(804) 371-9416 (fax)
www.state.va.us/scc/divisi
on/banking/
102 Mortgage brokers that table fund loans are considered mortgage lenders and must be licensed as such. Va. Admin. Ruling BFI-AR-1601.
103 However, independent contractors for licensed mortgage brokers (those from whose compensation payroll taxes are not withheld) must be individually licensed. Va. Admin. Ruling 1605.
104 See item 16 on the license application (version of 4/03).
105 See item 18 on the license application (version of 4/03).
106 All information filed in connection with a license application becomes public information unless confidential treatment is requested for particular documents.
all_states.DOC
May 2004
WASHINGTON – MORTGAGE BROKER AND LOAN ORIGINATOR LICENSING
Licensing Law
Mortgage Broker
Practices Act,
Wash. Rev. Code
§19.146.005 et
seq. See also
administrative
regulations of the
Department of
Financial
Institutions, Wash.
Admin. Code
(WAC) Ch. 208660.
License
Required?
Originator
Licensing and
Rules
Experience
Required for
Brokers
Education
Required
Surety Bond
Required for
Brokers107
Minimum
Net Worth
Required?
In-State
Office
Required?
(Bricks &
Mortar)
Duration of
License &
License
Renewal Dates
Yes, if the person,
for compensation,
makes a
residential
mortgage loan or
assists a person in
applying to obtain
a residential
mortgage loan, or
holds himself out
as able to do these
things.
N/A (the employees
of a licensed
mortgage broker or a
person exempt from
licensing may act
under their
employer’s
license).108 Each
licensee must have a
“designated principal
broker.”
The designated
principal broker109
must have at least
2 years of
experience in
residential
mortgage lending
unless he has
completed an
approved licensing
course. WAC
208-660-030 208660-040.
Designated
principal broker
must complete
continuing
education course
annually
beginning on 1st
anniversary date
of the licensee’s
license.110 WAC
208-660-042.111
Designated broker
must pass a
licensing test; the
regulator does not
provide study
material. Subjects
covered are
described in WAC
208-660-045.
$20,000 to
$60,000
depending on
the broker’s
monthly
average number
of loan
originators.
$20,000 bond
applies to 1-3
originators and
maximum
$60,000 bond
applies to
brokers with
more than 15
originators.
WAC 208-660080.
No
No
Licenses are valid
from the date of
issuance and have
no fixed date of
expiration. Wash.
Rev. Code
§19.146.210(4).
Annual assessment
due no later than
the last business
day of the month
in which the
anniversary date
of the issuance of
the broker's
license occurs.
WAC 208-660060.
License Related
Fees
Comments
&
Other
$371.60 license
application fee for
the first location +
$185.80
application fee for
each branch office.
Fees for review
and processing of
applications are
billed to applicants
at hourly rate
(currently $37.16).
Annual renewal
fee = $513.95 for
each office
(principal office
and branches).
WAC 208-660060.112
Out of state applicants for mortgage
broker license must appoint a
registered agent for service of process
in Washington. WAC 208-66009005. Mortgage brokers that receive
fees from consumers for third party
services must maintain trust accounts.
Licenses are not transferable; notice
must be given to the regulator when
the designated principal broker
changes or when ownership of the
licensee changes. WAC 208-660-110.
Designated principal broker must
provide fingerprints, personal credit
report and current employment
history. Licensee must also advise
regulator of other “significant
developments.” Noncompliance with
licensing law subject to fine of $100
for each separate violation.
Regulatory Agency
Institutions
Division of Consumer
Services
150 Israel Road, S.W.
Turnwater WA 98501
(360) 902-8703
(360) 664-2258 (fax)
www.dfi.wa.gov/
107 Assignment of certificate of deposit or irrevocable letter of credit may be substituted for the bond. WAC 208-660-080(5), 208-660-085.
108 In addition to employees, an individual who independently contracts with a licensed mortgage broker need not be licensed if the two parties have on file with the regulator a binding written agreement under which the licensed mortgage broker assumes responsibility for the independent contractor's violation of law or rule and the mortgage broker's bond covers the independent contractor's violations. Wash. Rev. Code §19.146.200.
109 Reference to the “designated principal broker” for experience and education purposes does not mean the “principal” of the licensee or license applicant. WAC 208-660-030. The “designated principal broker” is an individual designated by the license applicant who meets the education, experience and examination requirements for a license. WAC 208-660-010(16).
110 Evidence of completion of continuing education is submitted to the Department of Financial Institutions with the mortgage broker’s annual assessment.
111 The continuing education can consist of attendance at mortgage brokerage commission meetings, sessions sponsored by the Washington Association of Mortgage Brokers, or seminars conducted by private course providers approved by the Department of Financial Institutions (see “Mortgage Brokers Education and Testing,” update of 11/5/03).
112 These fees are anticipated to increase, per WAC 208-660-061 which states “the division intends to increase its fee and assessment rates each year for several bienniums.” A “fiscal growth factor” will be used to determine the increase. Rate increases take effect on July 1.
all_states.DOC
May 2004
WEST VIRGINIA – MORTGAGE BROKER AND LOAN ORIGINATOR LICENSING
Licensing Law
License
Required?
Originator
Licensing and Rules
Mortgage Loans
Act, W.Va. Code
§31-17-1 et seq.
See also
regulations of the
Division of
Banking, Tit. 106,
Series 5 (relating
to Residential
Mortgage Lender,
Brokers and Loan
Originators)
Yes, if the person in
the regular course of
business, for
consideration,
negotiates, originates,
arranges, processes
or assigns a
residential mortgage
loan between a lender
and a borrower.
Loan originators must
be licensed; an
application for a loan
originator license is
submitted by his/her
sponsoring mortgage
broker. A loan
originator may originate
loans for only 1
sponsoring mortgage
broker. Loan originator
must have FICO score
of at least 575 to satisfy
“financial
responsibility”
requirements.113
Persons whose tasks are
solely clerical are not
required to be licensed
as loan originators.114
Experience
Required for
Brokers
None, but the
loan originator
license
application
form requires
disclosure of
relevant
mortgage
experience and
training.
Education
Required
Each mortgage
loan originator
must complete
at least 7 hours
of continuing
education in the
year prior to
license
renewal.115
Evidence of
completion of
the education is
submitted with
the mortgage
broker’s license
renewal forms.
Surety
Bond
Required
for
Brokers
$50,000116
Minimum
Net Worth
Required?
$10,000
(also see
item 32 on
the license
application).
In-State
Office
Required?
(Bricks &
Mortar)
No
Duration of
License &
License
Renewal Dates
Mortgage broker
licenses are issued
for a calendar year
& expire annually
on 12/31.
Renewals are due
90 days before
expiration. $100
per day late charge
for renewals filed
after 10/1 (per the
“Instructions and
General
Information,
Renewal - 2004”).
Loan originator
licenses initially
valid from period
of their issuance
until 6/30/05.
Thereafter, they
are valid for 5
years with renewal
due 90 days before
expiration.
License Related
Fees
Mortgage broker:
$350 license fee +
cost of processing
fingerprint cards
($44). Licensed
mortgage brokers
pay a $5 per-loan
fee for each loan
brokered during a
calendar year.
Loan originator:
$150 license fee +
cost of processing
fingerprint card
($44).
Comments
&
Other
Foreign corporations seeking licenses
as mortgage brokers must have
qualified to do business in West
Virginia. If a loan originator ceases
employment with a mortgage broker,
the regulator must be notified within
15 days and the originator’s license
must be returned. Opening or
relocating a branch requires 30 days’
advance notice to the regulator.
Licenses are not transferable. A
penalty up to $1,000 for each
transaction engaged in without a
license may be imposed (see
instructions to application, version of
6/5/02).
Regulatory Agency
Mortgage Division
West Virginia Division of
Banking
State Capitol Complex
Building 3, Room 311
Charleston WV 25305
(304) 558-2294
(304) 558-0442 (fax)
www.wvdob.org
Change of name or
location fee: $100.
113 Loan originators with FICO scores lower than 575 may submit an explanation with supporting documentation which may be considered by the commissioner of banking. The division of banking reports that the 575 FICO score is the lowest 10% of the population based on reports from Experian.
114 Unpaid interns in school programs who are not compensated for their activities are not required to be licensed as loan originators. Loan originators for lenders (as opposed to brokers) and those licensed as both lenders and brokers are not required to be licensed.
115 The continuing education must be related to the laws and regulations applicable to residential mortgage loan origination. The course provider and course of instruction must be approved by the commissioner of banking.
116 The $50,000 bond applies regardless of the number of offices maintained by the mortgage broker. However, if the broker table funds loans he is considered a mortgage lender and the mortgage lender bond is $100,000.
all_states.DOC
May 2004
WISCONSIN – MORTGAGE BROKER AND LOAN ORIGINATOR LICENSING
Licensing Law
License
Required?
Originator
Licensing and Rules
Mortgage
Bankers, Loan
Originators &
Mortgage Brokers
Act, Wis. Stat.
§224.71 et seq.
See also rules of
the Department of
Financial
Institutions, Wis.
Admin. Code Ch.
DFI Bkg 40 - 43.
Yes, if the person
finds loans or
negotiates land
contracts or loans,
or engages in
table-funding.
Licensable activity
includes assisting
a loan applicant in
finding a lender
and making
arrangements for a
loan applicant to
obtain a loan; and
discussing or
explaining the
terms and
conditions of loans
or land contracts.
Those who act as loan
originators for mortgage
brokers must be
registered, whether
independent contractor
or employees.
Employees include
persons whose wages
are paid on a W-2 basis
with payroll taxes paid
by the employer, who
has the right to
supervise the employee.
Wis. Admin. Code DFI
Bkg. 40.02(2). A loan
originator may work for
only one licensed
mortgage banker or
mortgage broker at a
time. The mortgage
broker must sign a
statement taking
responsibility for the
financial and
professional activities of
his loan originators.
Experience
Required for
Brokers
Education
Required
None required
by statute, but
related
employment
and educational
experience for
each key officer
of the applicant
(or its sole
proprietor)
must be
described on
the registration
application.
None required
by statute, but
related
employment
and educational
experience for
each key officer
of the applicant
(or its sole
proprietor)
must be
described on
the registration
application.
Surety Bond
Required for
Brokers
$10,000 (if the
broker
maintains a
bona-fide office
in Wisconsin)
unless he does
either of the
following: (1)
files a personal
bond for
$10,000, or (2)
maintains net
worth of
$100,000 or
more. If the
broker does (1)
or (2) above,
the surety bond
is not required.
If broker has no
Wisconsin
office, bond of
$120,000
required.
Minimum
Net Worth
Required?
In-State
Office
Required?
(Bricks &
Mortar)
Duration of
License &
License
Renewal
Dates
$100,000 if
broker has a
bona-fide
Wisconsin
office and does
not file a surety
or personal
bond.
Registered
mortgage
broker may
either maintain
a bona-fide
office in
Wisconsin118 or
do both of the
following: (1)
file a surety
bond of
$120,000, and
(2) document
net worth of at
least $250,000.
Registrations
are renewed
every 2 years.
Renewal
applications are
due on the 1st
day of the
month prior to
the expiration
date.
If broker has a
bona fide office
in Wisconsin
and files a
surety or
personal bond,
none.
$250,000 if the
broker has no
Wisconsin
office.
License Related
Fees
Mortgage broker
registration fee:
$750. Biennial
renewal fee =
$750.
Loan originator
registration: $250.
Late registration
renewal fee
(mortgage broker
or loan originator)
= $100.
Filing notice of
loan originator’s
change of
employment - $20.
Comments
&
Other
Business entities such as corporations
and partnerships must qualify to do
business in Wisconsin as a
prerequisite to registration under the
mortgage banker and broker licensing
law. Fine up to $1,000 and/or
imprisonment up to six months may
be imposed for negotiating loans
without a registration. Unregistered
persons may not collect commissions.
Regulatory Agency
Institutions
Division of Banking
345 W. Washington Avenue
P.O. Box 7876
Madison WI 53707-7876
(608) 261-7578
(608) 267-6889 (fax)
www.wdfi.org
NOTE: Registration forms are being
updated; old registration forms will
not be accepted after June 15, 2004.
(New form dated 3/04, per regulator’s
website.)
For a partnership or
corporation to register
as a mortgage broker, at
least one person must be
designated as a loan
originator.117
117 All partners, directors, employees and members who act as loan solicitors must register as such; the minimum number of persons that may be registered for any one licensee is one.
118 Criteria for “bona fide office” are set forth on the registration application (see 3/04 version, on the website at http://www.wdfi.org/_resources/indexed/site/fi/mortbank/forms/mbrok_app.pdf (visited 7/20/04).
all_states.DOC
May 2004
WYOMING – MORTGAGE BROKER AND LOAN ORIGINATOR LICENSING
Licensing Law
N/A
License
Required?
No
and Rules
N/A
Experience
Required for
Brokers
N/A
Education
Required
N/A
Surety
Bond
Required
for
Brokers
N/A
Minimum
Net Worth
Required?
In-State Office
Required?
(Bricks &
Mortar)
N/A
N/A
Duration of
License &
License
Renewal
Dates
N/A
License Related
Fees
N/A
Comments
&
Other
Wyoming has no licensing law for
residential mortgage loan brokers.
Regulatory Agency
N/A
all_states.DOC
May 2004

montana – mortgage broker and loan originator licensing

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