Mortgage Broker/Lender License FAQs

The licenses from certain states allow a licensee to broker and lend with only one license fee. Other states allow a licensee to broker and lend with one license by paying a separate fee for brokering and a second fee for lending. Other states have separate licenses for mortgage brokers and mortgage lenders.

The answer depends on which state you want to broker a loan in. There are a few states that do not license mortgage brokers at all. Certain states do exempt a small number of loans from the licensing requirement. However, before you broker even one loan without a license, you must check to ensure that the exemption still exists. The laws of each state change all the time.

Certain states specifically stipulate a requirement of 18 months, two years, or 3 years of verifiable mortgage business experience (the application may require W-2 forms or letters from previous employers). Other states do not require any experience. The Gronsky Law Offices can advise you as to whether the state(s) you are interested in require mortgage industry experience.

About 30 states do not require an office in the state to which an applicant is applying. In states that do require an office, some states permit a home office, other states permit a home office only if the home is zoned for business use. The Gronsky Law Offices can advise you as to whether the state(s) you are interested in require an in-state presence.

Yes, in some states. And in certain of those states, the education may be obtained through internet classes. In other states, the principal of the applicant must attend classes in the state to which it is applying. The Gronsky Law Offices can advise you as to whether the state(s) you are interested in requires anyone in the company to take classes before an application can be submitted.

A few states, including Florida and New Jersey, require a principal to be licensed. Other states, such as North Carolina and Oklahoma, require individual loan officers to take an exam as part of their licensing requirements. The Gronsky Law Offices can advise you as to whether the state(s) you are interested in require an exam.

Certain states, such as Arkansas, Connecticut, Texas, Minnesota, and New Jersey require loan officers, also called loan originators, to be either licensed or registered. The Gronsky Law Offices can advise you as to whether the state(s) you are interested in require loan officers to be licensed or registered.

Generally, no. Some states require a certain minimum net worth for the company and the applicant must produce a financial statement to prove that the company has the required net worth. In other states, where a minimum net worth is not required, the applicant must submit a business plan to show the application reviewer that the company has a strategy for staying in business.

A surety bond is a contract with an insurance underwriter, which ensures that the Office of Banks and Real Estate can collect unpaid fees from the licensee. Not every state requires a surety bond.

It can vary by state and by the time of year. Some state statutes mandate a decision on the license application within a certain number of days (i.e., 60 days or 90 days) after a complete application is received by the reviewer. In other states that do not have statutory decision requirements, the reviewers will put aside new applications when the renewal season starts. That will lengthen the review process. Additionally, if you are applying for a license in a state that is not your home state, you must first file an Application for a Certificate of Authority to transact business. You may also need to register an assumed business name (a DBA). This adds extra time to the process.

The Gronsky Law Offices can draft and submit Articles of Organization for a new limited liability company or Articles of Incorporation for a new corporation. We can prepare and submit a Certificate of Authority Application for existing companies to do business in another state. We can help you obtain registered agents and surety bonds. We will prepare and submit the license application, obtain the supporting documentation that the application requires and follow-up repeatedly with the Banking Department until a decision on the license application is received.

Let us know that you want to get started with us. The Gronsky Law Offices will prepare and send to you an Engagement Letter which details the services that we will provide to you. Upon receipt of the Engagement Letter, signed by you and accompanied by a retainer check, the Gronsky Law Offices can start working for you!