ALABAMA – MORTGAGE BROKER AND LOAN ORIGINATOR LICENSING
Licensing Law
License
Required?
Originator
Licensing 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
Alabama Mortgage Brokers Licensing Act, Ala. Code §5-25-1 et seq.1Yes, 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 owner-occupied dwellings in Alabama, if occupied as principal residence of the borrower.
N/A No. 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). No. 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).
Yes. All licensed mortgage brokers must maintain a principal place of business in Alabama. Licenses are annual and expire 12/31. $100 license investigation fee; $500 initial license fee. Annual license renewal fee = $500.2 There is a 10% penalty for late renewals.
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-and-desist order, or $15,000 if the violations are “knowing.” Willful violations of licensing law are misdemeanors.
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.
ALASKA – MORTGAGE BROKER AND LOAN ORIGINATOR LICENSING
Licensing Law
License
Required?
Originator Licensing
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
ARIZONA – MORTGAGE BROKER AND LOAN ORIGINATOR LICENSING
Licensing Law
License
Required?
Originator
Licensing 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
Mortgage Brokers and Mortgage Bankers Act, Ariz. Rev. Stat. §6-901et 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). 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. 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 $10,000 for brokers whose investors are solely “institutional investors” and $15,000 for others. Ariz. Rev. Stat. §6-903 (H). 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.
$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.
Arizona State Banking Department 2910 N. 44th Street Suite 310 Phoenix AZ 85018 (602) 255-4421 (602) 381-1225 (fax) http://www.azbanking.com/
3
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).ARKANSAS – MORTGAGE BROKER AND LOAN ORIGINATOR LICENSING
Licensing Law
License
Required?
Originator Licensing
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
Fair Mortgage Lending Act, Ark. Code Ann. §23-39-501 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. §23-39-502.
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. 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.)
N/A $50,000 $25,000 No Licenses are
renewed annually within 120 days of the licensee’s fiscal year-end. $750 non-refundable 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
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.
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
CALIFORNIA – MORTGAGE BROKER AND LOAN ORIGINATOR LICENSING (REAL ESTATE BROKER LAW)
Licensing Law
5License
Required?
Originator Licensing
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
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. At least 2 years of full-time licensed sales-person 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. Licensed real estate brokers must complete 45 hours of continuing education over the 4-year license period. No 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.
$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.
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.
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.
6 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.
COLORADO – MORTGAGE BROKER AND LOAN ORIGINATOR LICENSING
Licensing Law
License
Required?
Originator Licensing
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
None No N/A N/A N/A N/A N/A N/A N/A N/A 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. §38-40-101(6).
CONNECTICUT – MORTGAGE BROKER AND LOAN ORIGINATOR LICENSING
Licensing Law
License
Required?
8Originator Licensing
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
For brokering first mortgage loans: Nondepository First Mortgage Lenders and Mortgage Brokers Act, Conn. Gen. Stat. §36a-485 et seq. For brokering second mortgage loans: Second Mortgage Act, Conn. Gen. Stat. §36a-510 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. For brokering second mortgage loans: yes, same definition as above, but for second mortgages.
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 mortgage broker, the 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.) No $40,000 $25,000 (documented by financial statement not more than 6 months old) No Licenses expire on September 30 of even-numbered years. Renewals due by September 1. $400 non-refundable 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. Late filing fee for late renewal of license = $100.
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.
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/
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.
DELAWARE – MORTGAGE BROKER AND LOAN ORIGINATOR LICENSING
Licensing Law
License Required?
Originator
Licensing 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
Mortgage Loan Broker Act, 5 Del. Code §§2101-2115. See also operating regulations adopted by the State Bank Commissioner, Del. Admin. Code tit. 5 §2101.9Yes, 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) None No $25,000 (letter of credit for $25,000 may be substituted) No No Licenses are annual and expire on 12/31. $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).
Licensed mortgage brokers must 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.
Violations of the Mortgage Loan Broker Act subject to fine of $50-$200 for each offense, plus imprisonment up to 3 months.
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/
DISTRICT OF COLUMBIA – MORTGAGE BROKER AND LOAN ORIGINATOR LICENSING
Licensing Law
License
Required?
Originator
Licensing
and Rules
Experience
Required for
Brokers
Education
Required
Surety Bond
Required for
Brokers
Net Worth
Minimum
Required?
In-State Office
Required?
(Bricks &
Mortar)
Duration of
License &
License
Renewal
Dates
License Related Fees
Comments
&
Other
Regulatory Agency
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, directly or indirectly 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 mortgage broker, the broker must be licensed as a lender, not a broker (i.e., table-funding brokers are considered lenders).
N/A 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). No 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. License applicant must capitalize the business with at least $10,000. D.C. Code Ann. §26-1103(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 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. 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.
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.
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.
FLORIDA – MORTGAGE BROKER AND LOAN ORIGINATOR LICENSING
Licensing Law
License
Required?
Originator
Licensing and Rules
Experience
Required for
Brokers
Education
Required
14Surety
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
Mortgage Brokerage and Lending Act, Fla. Stat. §494.001 etseq.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 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. Pre-requisite to licensing: 24 hours of classroom education on primary and subordinate mortgage financing, plus success on an examination.17 Fla. Admin. Code §§ 3D-40.026, 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 § 3D-40.0271. No No No (in-state office requirement was repealed in 1999). Licenses issued to individual mortgage brokers are renewed biennially beginning 9/1 of each odd-numbered year.19 Fla. Admin. Code § 3D-40.043. Licenses issued to mortgage brokerage businesses are renewed biennially beginning 9/1 of each even-numbered year. Fla. Admin. Code § 3D-40.053. 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.
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.
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.
Department of Financial Services
Office of Financial Regulation
200 East Gaines Street Tallahassee FL 32399-0375 (850) 410-9500 (850) 410-9914 (fax) www.fldfs.com/OFISR
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.
GEORGIA – MORTGAGE BROKER AND LOAN ORIGINATOR LICENSING
Licensing Law
License
Required?
Originator Licensing
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
Georgia Residential Mortgage Act, Ga. Code Ann. §7-1-1000 et seq. See also rules of the Department of Banking, Ga. Admin. Code ch. 11-1 and 80-11-4, 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. Yes; mortgage brokers must have at least 2 years of verifiable full time experience. Ga. Comp. R & Regs R. 80-11-4-.01. This experience must be documented with a letter from the previous employer and W-2 wage statements. 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. $50,000 unless the applicant has minimum net worth of $100,000. $100,00020 unless the applicant provides a surety bond of $50,000. 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 §7-1-1003.1. Licenses are annual and expire on June 30 with renewals available from April 1. There is a $300 fee for late renewals. $250 non-refundable 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.
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.
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.
HAWAII – MORTGAGE BROKER AND LOAN ORIGINATOR LICENSING
Licensing Law
License
Required?
Originator Licensing
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
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. At least 1 officer or member of the applicant must have 2 years of experience in primary or subordinate mortgage financing.
N/A $15,000 N/A Yes; every
licensed mortgage broker must maintain a principal place of business in Hawaii. Haw. Rev. Stat. §454-3(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 even-numbered years is an automatic forfeiture of the license (per application instructions). 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.
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. 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.
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
IDAHO – MORTGAGE BROKER AND LOAN ORIGINATOR LICENSING
Licensing Law
License
Required?
Originator Licensing
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
Idaho Residential Mortgage Practices Act, Idaho Code §26-3101 et seq.Yes, if the person does the following for compensation or gain: directly or indirectly accepts applications for 1-4 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 part-time basis, are exempt from licensing (they may act under their employer’s license). Idaho Code §26-3103(7).
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 §26-3108(2). N/A $10,000 plus an additional $10,000 bond for each branch office.
$10,000 No. Licenses are
annual and must be renewed by 8/31. $200 non-refundable application fee; annual fee of $100 for the license.
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.
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
ILLINOIS – MORTGAGE BROKER AND LOAN ORIGINATOR LICENSING
Licensing Law
License
Required?
Originator Licensing
and Rules
22Experience
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
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.
Loan originators are 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 635/1-4(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). 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. No $20,000. Ill. Admin. Code tit. 38 §1050.490. $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 full-service 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 2-year 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 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).
Licensed mortgage brokers must 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).
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).
INDIANA – MORTGAGE BROKER AND LOAN ORIGINATOR LICENSING
Licensing Law
License
Required?
Originator Licensing
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
Loan Broker Act, Ind. Code §23-2-5-1 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. No 24 hours of academic instruction in loan brokerage is required for all persons who originate loans or negotiate loan terms with borrowers. Ind. Code §23-2-5-10(d). $50,000 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.
Initial fee for filing a license application = $200. License renewal fee = $200.
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). 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
IOWA – MORTGAGE BROKER AND LOAN ORIGINATOR LICENSING
Licensing Law
License
Required?
Originator Licensing
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
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.
N/A -- a person who acts solely as an employee or agent of a licensed mortgage broker is not required to be separately licensed. No No $15,00 for mortgage brokers engaged only in brokerage; $30,000 if the mortgage broker is also engaged in mortgage banking. 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. No Licenses expire on 6/20 in the year after they are issued. Renewal applications must be filed by June 1. $500 application fee; $200 license renewal fee.
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.
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
KANSAS – MORTGAGE BROKER AND LOAN ORIGINATOR LICENSING
Licensing Law
License
Required?
Originator Licensing
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
Kansas Mortgage Business Act, Kan. Stat. Ann. §9-2201 et seq. See also administrative rules of the State BankCommissioner 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.
Loan originators must be 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 N/A Loan originators must complete at least 8 hours of education annually. 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. Depends on whether the mortgage broker maintains a Kansas office. If so, no minimum net worth required. Otherwise, $50,000. No Licenses are
biennial and are renewed in odd-numbered 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.”) $600 non-refundable 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.
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.”
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.
KENTUCKY – MORTGAGE BROKER AND LOAN ORIGINATOR LICENSING
Licensing Law
License
Required?
Originator Licensing
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
Mortgage Loan Companies and Loan Brokers Act, Ky. Rev. Stat. Ann. §294.010 etseq. 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
Department of Financial Institutions; independent agents may not act as loan officers unless licensed as mortgage brokers.
No. 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. $50,000 (a letter of credit or escrow agreement for a savings certificate may be substituted for the bond).
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 12-month 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.
There are special requirements for use of a residence as a place of business (must comply with zoning requirements, etc.). KAR 12:075. Licenses expire on June 30 and must be renewed annually by June 20. Late renewals result in a $250 reinstatement fee. 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. Loan officer registration fee is $50.
Those filing claim of exemption from licensing must pay $150 fee.28
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.
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/
27 The requirement for registration of loan officers was added by Ch. 64, Laws of 2003 (H.B. 287), effective June 24, 2003.
LOUISIANA – MORTGAGE BROKER AND LOAN ORIGINATOR LICENSING
Licensing Law
License
Required?
Originator Licensing
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
Residential Mortgage Lending Act, La. Rev. Stat. Ann. §6:1081 etseq.
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. N/A 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. $50,000 as substitute for minimum net worth of $50,000; otherwise, no surety bond required. $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. Licenses expire
annually on December 31; renewal filings are due on December 1. 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. Those exempt from licensing but subject to registration must pay a $400 registration fee.
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).
Office of Financial Institutions P.O. Box 94095 Baton Rouge, LA 70804-9095 (225) 925-4660 (225) 925-4548 (fax) http://www.ofi.state.la.us/
MAINE – MORTGAGE BROKER AND LOAN ORIGINATOR LICENSING
Licensing Law
License
Required?
Originator Licensing
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
Maine Consumer Credit Code, Me. Rev. Stat. Ann. tit. 9-A §10-101 etseq. (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.”
N/A No No $10,000 No No Licenses must
be renewed by 1/31 annually. Annual renewal fee is $100.
$200 application fee for credit services organization license. Annual renewal fee is $100.
Application for a credit services organization license must include the forms and sample agreements the broker will use with consumers.
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
