Mortgage License Requirements For a Loan Originator In Vermont

Vermont has a mandatory license for mortgage loan originators. It is obtained through the NMLS system. For the requirement to apply, you must be doing mortgage work for profit or at least expect to profit from your activities. This could be via a salary or commission. Only residential mortgages apply. Covered activities include taking an loan application, offering a loan, or negotiating a loan. And just holding yourself out to the public as a provider of these services is sufficient to required registration. The licensing agency is the Vermont Department of Financial Regulation’s Banking Division. An MLO can work for one licensed broker or other business at a time.

Even if you are a sole proprietor who is a licensed broker or lender, you still have to get this MLO license if you engage in the covered activities. Otherwise, you would have to hire someone to do this work. If you are a loan processor or underwriter who works as an independent contractor, you will also have to be licensed as an originator. But employees who only process or underwrite do not have to be licensed. A real estate broker who is not being compensated for mortgage-related transactions does not have to get a license, either. But the activities of the broker must be limited to authorized real estate broker activities. Employees of certain banks and other institutions are exempt. Your employer will know whether you are exempt. The last exemption is for those who exclusively market credit for timeshares.

As of 2013, applicant must complete an educational course that is a total of at least 20 hours and includes 2 hours on Vermont law. Also since 2013, there is a new exam requirement. You must pass the National and Stand-alone SAFE test components or the National Test Component with Uniform State Content. A background check and credit report are both required, as well. If you are licensed in another state, then you must be in good standing in that jurisdiction.

Fees are $130, but there may be an additional fee of $15 for a credit report and $36.25 for fingerprints. Use the checklist on the following page when applying for your Vermont mortgage loan originator license:

http://mortgage.nationwidelicensingsystem.org/slr/PublishedStateDocuments/VT-MLO-New_Application-Checklist.pdf

If you have questions, you can call 802-828-3307. The email address is DFR.NMLS1@state.vt.us.

Utah Division Of Real Estate Mortgage License Types

The Utah Division of Real Estate has 4 mortgage license categories. One of them is for a mortgage loan originator. I have written a separate MLO article because the Department of Financial Institutions has yet another kind of MLO license. Thus, you should read up on both types to see which one to get for your personal situation and qualifications. Click on “Utah mortgage license” in the tags under this article to read about both kinds of Utah mortgage loan originator categories and their respective requirements. The remainder of this post covers the 3 other kinds of mortgage licenses issued by the Utah Division of Real Estate.

A mortgage entity license is any business organization or person is in the business of residential mortgage loans for the purposes or earning a profit or some kind of compensation. This includes loan origination, solicitation, servicing, negotiation, placing for others, accepting applications from a customer, and communication with the lender, borrower, or both. Mere clerical work might not require a license, though. If you are a clerical worker, your employer should be able to tell you whether you need a mortgage entity license. Fees are about $325. All license applicants must hire a lending manager.

A mortgage branch office license is for a person or company that is licensed as a mortgage entity has one or more additional offices. This also includes branches located outside Utah, but only if the branch markets to Utah residents. Marketing to Utah residents through the Internet or mail also suffices to require a branch license. Fees are around $250. Each branch must also have its own lending manager.

The third license is for lending managers. This is for an actual person, not a company. It also applies to residential mortgage loans only. The activities covered are the same as for mortgage entities. But it is the branch manager who gets a lending manager license. These individuals must have at least 3 years of experience in the 5 years before the application. This experience must be obtained while working in a mortgage office. Since the branch manager is always working for a company, that employer must be on the application form for the license to be activated. Lending managers must be qualified as mortgage loan originators first. Then, they take an additional 40-hour mortgage manager course and must pass an exam. Fees are about $200.

The page below, which is on the NMLS website, has New Application links that give you a checklist for each Utah Division of Real Estate mortgage license type.

http://mortgage.nationwidelicensingsystem.org/slr/Pages/DynamicLicenses.aspx?StateID=UTDRE

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How To Become a Licensed Mortgage Loan Originator In Utah

There are actually two different kinds of mortgage loan originator licenses in Utah. One is issued by the Division of Real Estate. The second one is issued by the Department of Financial Institutions. Those interested in becoming a mortgage loan officer should be aware of how to qualify for each of these licenses so they can complete the necessary education, testing, and other requirements.

The MLO license from the Department of Financial Institutions is for those who take a mortgage loan application or offer or negotiate terms of such a loan for profit or expected profit. This license is different in that it does not specifically contemplate that the licensee will be an employee of another person or company.

The mortgage loan originator license from the Division of Real Estate is for employees of another person or company who offer or accept to offer mortgage loan applications for compensation. So this must be a person who gets a salary or other income based on work as an employee.

The DFI license for mortgage loan originators requires a 20-hour course and a combination of passing scores on some mortgage exams. This can be the National and State SAFE test, National and Stand-alone UST SAFE test, or the National Test Component with Uniform State Content. Fees are $230 for the license, and applicants who have not already done so also pay smaller fees of about $15 and $36 for a credit report and background check.

The DFI license holder does not need an employer to get a license. However, in exchange for that, a surety bond is required. It’s $12,500 for volume up to $5 million, 25K for 5 to 15 million, and 50K for over 15 million.

Total fees for the Division of Real Estate license are about $200, which is a little cheaper than the other one. And the other major difference with this second type of license is that you must have a sponsoring employer before your application will be activated even if you are accepted. I found some discrepancies in the checklist for this license. It says 20 hours of education are required, but then it also says 15 hours. Since the other license requires 20 and you may want to switch to that license to run your own business, it is probably better to just complete 20 hours, anyway. So taking a 20-hour course has that benefit.

Both of the Division of Real Estate and DFI Utah mortgage loan originators use the MU4 form when applying through the NMLS system. Use the following instructions:

http://mortgage.nationwidelicensingsystem.org/licensees/resources/LicenseeResources/Loan-Officer-MU4-Filing.pdf

For some reason, I was not able to find any Utah courses in the NMLS catalog. However, some of them may still qualify you for a license. Make sure you ask the course provider about this before signing up.

http://mortgage.nationwidelicensingsystem.org/profreq/education/mcc/Pages/default.aspx

How To Get a Property Tax Lender Mortgage License In Texas

A property tax lender license is issued in Texas by the Office of Consumer Credit Commissioner. Although not precisely a mortgage license, it is similar to a mortgage due to its relation to real estate. Although mortgage licenses in Texas typically apply for residential properties only, both residential and commercial properties apply for property tax lenders.

A property tax loan is one taken out to pay for property taxes on a residence, in which a lien is placed on the property. If the borrower fails to pay the loan, the property tax lender can foreclose on the property. This causes the house to be sold, and the proceeds can be accessed by the lender to pay off the defaulted loan.

Texas requires one property tax lender license for the first office and a branch license for the second or other additional offices. So if you have 3 total offices, you would need 2 branch licenses in addition to the main one.

Also, even if you just negotiate or service a property tax loan, you must get this license. Servicers are not always the actual lender, as they may just process the money. They generally must also get a license.

Texas property tax lender license applicants use the NMLS MU1 form.

http://mortgage.nationwidelicensingsystem.org/licensees/resources/LicenseeResources/Company%20%28MU1%29%20Form%20Filing%20Instructions.pdf

There is an $800 license fee. Also, you must have net assets of $25,000 per location. Principals of the lending company must pass a criminal background check. According to NMLS, some experience requirements apply. They don’t say exactly how much experience. But there must be a qualifying individual at each location. It is best to have a qualifying individual with at least 5 years of experience in the loan industry.

Branch fees are $820. Use the MU3 form for each branch.

http://mortgage.nationwidelicensingsystem.org/licensees/resources/LicenseeResources/MU3%20New%20App.pdf

The company would also generally be hiring licensed mortgage loan originators. Under Texas law, MLOs are also required for property tax loans. The Texas Office of Consumer Credit Commissioner also licenses loan originators. Although there is no education or exam for the lender license, MLOs must meet education and testing qualifications. I have written a separate article on that license type. You can find it by using the “Texas mortgage license” tag below.

How To Become a Mortgage Loan Originator (Officer) In Texas

There are two different mortgage loan originator (or mortgage loan “officer”) licenses in Texas. One is an employee of a Chapter 156 or 157 mortgage banker or broker. The Texas Department of Savings and Mortgage Lending is the issuing agency for this first license. The second license is issued by the Texas Office of Consumer Credit Commissioner. The statutes do not describe this mortgage loan originator as an employee.

I have discussed the Texas Department of Savings and Mortgage Lending mortgage loan originator license requirements in a separate article. Just click on “Texas mortgage license” in the tags below and find the article on the Department’s licensing. The rest of this article will deal with the Texas Office of Consumer Credit Commissioner license for mortgage loan originators.

This license is required for residential mortgage loans only. But within the context of residential loans, it also applies to property tax loans, home equity loans, and secondary mortgage loans. In this case, a property tax loan is one taken out to pay property taxes, and the collateral for that loan is a residence. Mobile homes are also included in the definition. However, there is a limitation. Only structures with up to 4 family housing units apply. Individual condo units are included, though.

Mortgage loan originators must pass a background check and show good credit history for financial responsibility. The other main requirements are education and testing.

Applicants must take and pass the National and Texas components of the SAFE test. Sometimes, the exact exam requirement changes. But for the foreseeable future, you will probably have to pass whatever test is applicable at the time of application.

Pre-license education must be taken, as well. As of the time of this writing, NMLS says it is 20 hours. The other Texas mortgage loan officer license requires 23 hours. So you may have to do more. Just check with the education providers, telling them the exact license you are trying to obtain. They should know the most current rule at the time you are registering for classes. I would just take a 23-hour course to make sure you are qualified (see below on how to find these classes).

A $25 recovery fund fee is mandatory. Other possible fees include about $15 for a credit report and about $36 for a background check. As of the time of this post, there is a fee of $355 for this license.

Although you must have an employer to activate this license, it will be issued in an inactive status if you are not employed at the time of acceptance. This is different than the other Texas MLO license, which is not issued at all unless you already have an employer.

Mortgage loan officers use the MU4 to apply for a license:

http://mortgage.nationwidelicensingsystem.org/licensees/resources/LicenseeResources/Loan-Officer-MU4-Filing.pdf (MU4 Form Instructions)

To be on the safe side as far as education, you may choose to take a 23-hour TX-SML Comprehensive Mortgage Loan Originator course. This will fulfill the requirements for either Texas license. You can scroll down to find the Texas courses.

http://mortgage.nationwidelicensingsystem.org/profreq/education/mcc/Pages/PECourseBrowsing.aspx?cctCategoryCode=PECOMP

You probably don’t need to get both of these Texas MLO licenses. Don’t apply for a second one until asking the authorities first. The Texas Office of Consumer Credit Commissioner can be reached at 512-936-7600.

Texas Department of Savings And Mortgage Lending Licenses

The Texas Department of Saving and Mortgage Lending is one of 3 agencies that issues mortgage licenses. Be aware that there are different kinds of mortgage loan originator licenses. One is issued by the Department of Saving and Mortgage Lending. The others are issued by the Texas Office of Consumer Credit Commissioner. If you are intending on becoming a licensed mortgage loan originator, then you should check both sets of requirements. Depending on your situation, you may have to get one or both licenses. The Texas Department of Banking also issues money transmission licenses.

Note: In this article, I will now just use “Department” to refer to the Texas Department of Saving and Mortgage Lending.

As previously mentioned, the Department issues a mortgage loan originator license. But it also has license categories for mortgage brokers and others. A list of the others follows:

1. mortgage banker;
2. mortgage banker branch;
3. mortgage company;
4. mortgage company branch;
5. auxiliary mortgage loan activity company;
6. credit union subsidiary organization;
7. credit union subsidiary organization branch;
8. financial services company;
9. independent contractor processor/underwriter company; and
10. mortgage loan servicer.

With the types mentioned above, you might also have to get more than one license. So you should understand the exact activities of your prospective mortgage business so you can find out which licenses you need.

Auxiliary mortgage loan activity companies are only those who are either a Texas or federal government agency assisting Texas borrowers or a 501(c)(3) nonprofit helping people buy affordable homes.

Residential mortgage loan servicers must also get a license. These are people or companies who receive funds from borrowers and then process them on behalf of the lender. It applies to residential loans, not commercial mortgages.

The mortgage company license is for loan originators. It is also for residential loans only. Mortgage bankers also must register for residential loans only. The Texas definition of a mortgage banker is complicated. You should read Texas Finance Code Chapter 157 to determine if your organization is a mortgage banker.

A financial services company is a kind of mortgage company for residential loan origination. However, it uses individuals to conduct business, and those individuals are the exclusive agents of the company. This is complicated. But the Department can tell you whether you actually qualify as a financial services company. Call 512-475-1350 and have your business details ready so you can explain what you are trying to do with your business. They will then make a determination on whether this is the correct license for your business. The advantage to this license is that mortgage companies must have a physical office in Texas.

The independent contractor processor/underwriter license is for people who do clerical work for a licensed residential mortgage company or other loan originator. This one has less requirements than most of the other licenses since these companies are not actually lending any money.

Credit union subsidiary organizations are at least partially owned by a credit union. They must get a license if they assist the credit union in processing residential mortgage loans.

Mortgage company, banker, and credit union subsidiary organizations must get an extra license for additional branches. The Department does not issue any other kind of branch licenses for the other types.

Mortgage loan originators are basically individual loan officers that are employees of a mortgage broker or banker. They must be licensed even though they do not personally lend money to borrowers. Certain education and exam requirements usually apply. 23 hours (3 dealing with Texas law) of education must be obtained. As of October of 2013, applicants must pass the National Test Component With Uniform State Content. You must have a sponsoring employer to get the license application approved.

NMLS has application forms for each type of mortgage license issued by the Texas Department. You can find links to those forms on the following page. The application packets contain the surety bond, application fee, and other requirements. Fees are around $200 to $700 for these Texas mortgage licenses.

http://mortgage.nationwidelicensingsystem.org/slr/Pages/DynamicLicenses.aspx?StateID=TXSML

How To Get Certified As a Home Inspector In Wyoming

Close to half of U.S. states do not generally require a license for work as a home inspector. Wyoming is one of those states. However, you should be aware that certain kinds of inspections, such as code enforcement, may require a license. In Wyoming, this is generally done at the city level. So whether you need a license typically depends on your local area.

The home inspection industry is comprised of a group of professionals who inspect for defects when a house is being sold to a different buyer. Home inspectors who operate without a license because the state doesn’t issue one are typically limited to older homes that have already been used as a residence. Inspections on new construction will often require a building inspector license or something similar. So if you want to be a home inspector in Wyoming, prepare to limit your activities to homes being sold by an existing owner to a new owner. Inspections of new homes are generally done to see if they are up to code. And that may require a special license.

Some people like to get certification as a home inspector even in a state where a license is not required. This adds credibility to an inspector and his or her business. And credibility often means more clients and money in the long run.

There are multiple national organizations that can train you up on how to be a home inspector and also certify you at the completion of the training. However, most require you to pass either their own test or something like the National Home Inspector Examination. These are private organizations, so they set their own rules on certification. No one from the Wyoming government has anything to do with these private certifications. They are just to help you in your business and are not mandatory at all. Some organizations you can consider getting certified with are ASHI, NACHI, ICA, and PHII. Costs are typically something like $500. If they do make you take the NHIE, then that’s usually an additional $200 too $225. CodeInspection.com is one source for building inspector training on code enforcement. This is not required for home inspection certification, but it can help you expand your expertise and array of services.

Wisconsin License Requirements For Home Inspectors

The Department of Safety and Professional Services licenses home inspectors in Wisconsin. This is a 2-year license that must be renewed in December of every even year.

Individuals who do home inspections for compensation must be licensed in this state. A home inspection is the process of examining the readily accessible observable systems and components of a residential building. Checking a home for energy performance is not considered a home inspection so long as the professional does not claim to be doing a home inspection. Applicants who have committed any crime that is substantially related to home inspections do not qualify for a Wisconsin license. This also refers to pending charges, not just convictions.

Like most states, Wisconsin requires you to pass an exam to get licensed (the terms “registration” and “registered” are used in this state) as a home inspector. However, unlike most states, the statute does not mention required training.

Even if an educational course is not required, that doesn’t mean you should not get training because you at least have to know enough to pass the test.

The Wisconsin home inspector exam consists of a trade exam on actual home inspection principles and procedures plus a 2nd part on Wisconsin laws and rules related to this profession. There is a passing score for both parts. So you must pass both without averaging to pass the entire exam.

Applicants may retest if they fail. The statute does not mention a maximum number of attempts. But this is naturally dealt with by the fact that you have to pay the test fee again every single time.

PSI administers the National Home Inspector Examination. You can use the following page to register for the test. It is about $225.

https://candidate.psiexams.com/catalog/fti_agency_license_details.jsp?fromwhere=findtest&testid=2329

The page below is a license application that also functions as a test registration form for the Wisconsin state portion of the test. For most applicants, the fees for the license and the state test are $150 (75 each).

http://dsps.wi.gov/Documents/Credentialing%20Forms/Business%20Application%20Forms/fm2466.pdf

The state test is done online at home. So you can access all the related statutes and administrative rules and refer to them when taking the exam. But you must get at least 85 percent correct for a passing score.

After the first renewal, a Wisconsin home inspector must obtain 40 hours of credit in continuing education. This is not necessary for the initial registration period.

Home Inspector License Qualifications In West Virginia

Home inspectors are licensed in West Virginia by the State Fire Marshal’s Office’s Regulatory and Licensing Section. This Office does not provide its own training. But they require training from an approved education provider. All applicants must also pass a licensing exam, have insurance, and meet other miscellaneous qualifications.

In West Virginia, the term “license” is not used with home inspectors. They use the term “certification,” which is somewhat confusing because that word is usually used in a nongovernmental setting. Nonetheless, this particular “certification” is a legal requirement for West Virginia home inspectors, not a voluntary process.

The State Fire Marshal’s Office has a list of approved schools that can fulfill the 80-hour training requirement. This state does not accept Internet or distance education. So you must attend a live class. The list of approved courses is on the following page.

http://www.firemarshal.wv.gov/documents/home%20inspectors%20approved%20courses.pdf

There are 2 tests that you may take. However, when checking recently, it seems that NAHI let its website domain registration lapse. It’s not clear whether they are even going to be in business in the future. Previously, they did have a test program that was accepted by West Virginia. But you can always just take the other test, which is the National Home Inspector Examination. Details on the NHIE can be found on their website, which is at homeinspectionexam.org. They have a list of recommended references, which you may or may not already have in connection with your approved training program.

Other requirements include the following: high school diploma or GED, background check, Department of Tax and Revenue business license, the license application fee of $150, and general liability insurance of at least 250K. The Fire Marshal says that you can contact MorphoTrust.com to process a criminal background check. When you submit your application, which can be found on the page posted below, you should make payment to WVSFMO.

http://www.firemarshal.wv.gov/Documents/2015%201%20HOME%20INSPECTOR%20APPLICATION.pdf

Additional documents and the statutes that govern home inspector certification in West Virginia can be found on the following page:

http://www.firemarshal.wv.gov/Divisions/Fire%20Services/Pages/Home-Inspector-Certification.aspx

Home Inspector License Requirements In The Washington, D.C. Area

When contemplating a home inspector career in the area of Washington, D.C., consider that many businesses in this area attempt to maximize their potential by obtaining legal authority to operate in D.C., Maryland, and Virginia. If you want to do this, then you need to know how to become a licensed or certified home inspector in all 3 jurisdictions.

First, there is no license or certification requirement in Washington, D.C. You may have to get a general business license. But there is no home inspector license. However, what I am referring to is the act of inspecting a home that is being sold by the owner to a new owner. This article does not deal with inspections of newly constructed residences or other code-enforcement activities. Home inspectors don’t do code inspections. Rather, they do inspections for possible defects.

If you want to learn more about getting licensed in Maryland as a home inspector, then you can use the search box above and enter “Maryland home inspector license.” Here, I will just briefly summarize the requirements for that state. To do home inspections in Maryland, you must get a license from the Maryland Commission of Real Estate Appraisers and Home Inspectors. They require 72 hours of training plus a passing score on an exam.

Virginia has a rather complex system of certification and licensing. But the license system is actually set to become effective in July of 2017. So if you are just planning to start a career in home inspection in the D.C. area, it may be too late to even worry about certification by the time you read this article. And at the time of this post, it’s not clear yet exactly what requirements will be imposed to get a Virginia home inspector license. Presumably, though, you can expect to have to have some training courses plus a test. Use the search box above or click on the “home inspector license” tag below to find the Virginia article and learn more about certification (up to July of 2017) and licensing for home inspectors in this state.

So at least beginning in July of 2017, you will need a license in Maryland and Virginia to operate in those states. But there is no license requirement in D.C. So you could start a business in D.C. as soon as you get up to speed with home inspection even if you just do self-study. But it is advisable to get training through ASHI, InterNACHI, or some other national organization if you are not experienced in contracting or a similar real estate area. Those organizations can also provide certification. They usually require you to pass a test, such as their own test or the National Home Inspector Examination.