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

Wyoming Mortgage Loan Originator License Qualifications

Wyoming requires a license from the Division of Banking for nonexempt mortgage loan originators. MLOs who offer or negotiate mortgage loans or take them from customers must get a license if any of the dwellings associated with the mortgages are located in Wyoming.

MLOs at banks, savings and loans, and similar financial institutions are usually exempt from Wyoming license requirements. So are those who are only helping an immediate family member or dealing with a mortgage secured by the seller’s own dwelling. Attorneys engaged in normal client representation don’t have to get a mortgage loan originator license, and those who only do underwriting and loan processing are not required to obtain a license.

Wyoming MLO’s do not have to have a particular net worth or submit a surety bond. But they must pass a credit check that was ordered within 30 days before the application to show basic financial responsibility. A criminal background check is also mandatory.

As of 2017, the education requirement is 20 hours. Unlike some states, none of this has to be specific to Wyoming mortgage laws and regulations. But that could change in the future. Use the NMLS Pre-License Education Courses databases to find a school that provides the mandatory MLO educational classes. The PE Compehensive section has plenty of schools with 20-hour courses. Just double check with the school to make sure it qualifies for a Wyoming license. There are no entries that actually offer a specific Wyoming course since Wyoming does not currently have a state-specific requirement. So the generic 20-hour courses generally qualify for this state’s license.

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

As of 2013, there are 3 exam options. You can qualify by passing the National and Wyoming SAFE test components, the National and Stand-alone UST components, or the National Test Component with Uniform State Content.

Wyoming charges $150 for the MLO license application. The credit check is $15, and the background check is around $36. You may use the following checklist and MU4 application instructions to apply.

http://mortgage.nationwidelicensingsystem.org/slr/PublishedStateDocuments/WY-MLO-New-Application-Checklist.pdf (MLO license checklist)

http://mortgage.nationwidelicensingsystem.org/licensees/resources/LicenseeResources/Loan-Officer-MU4-Filing.pdf (MU4 form for loan officers and mortgage loan originators)

Wisconsin Mortgage Licenses for Bankers And Brokers

Mortgage bankers and brokers must get a license to operate in Wisconsin. The regulating agency is the Department of Financial Institutions Division of Banking.

A mortgage banker license is issued to those who originate residential mortgage loans, sell them in whole or sell interests in such loans, or service these loans. Those who provide escrow services must also have a mortgage banker license. However, the VA and banks, real estate brokers, and people extending credit for timeshares typically don’t have to get this Wisconsin banker license. These same exemptions apply to the broker license.

Mortgage brokers are those who seek compensation in connection with arranging a residential mortgage loan for an applicant or investor. Both finding and negotiating loans are covered under this rule. And table funding also requires a broker license.

Bankers have a rather large surety bond requirement of $300,000. And the minimum net worth is a large $250,000. A CPA must prepare a financial statement to attest to this requirement. For brokers, the bond requirement is 120K, and the net worth is 100K. In all cases, the surety bond must be issued by a company that is authorized to do business in this state.

Applicants for these licenses must present a document showing authority to do business in the state that has been issued in the 60 days before the application. And business organization formation documents must also be submitted.

Wisconsin mortgage banker license application fees are $1100. Broker fees are a little cheaper, at $850.

Although not mentioned in the NMLS checklists that are posted below, bankers and brokers would generally have to hire a mortgage loan originator to engage in certain activities. MLOs must be licensed to take, offer, or negotiate a residential mortgage loan application.

Mortgage banker and broker branch licenses are also required. This applies for any office if the customers are residents of Wisconsin even if the office is located out of state. Banker and broker branch license application fees are $370 in this state. There must be a branch manager that is an MLO for brokers and bankers and an extra 10K in surety for any branch offices more than 5. No extra surety is required over and above the standard 120K or 300K as long as there are 5 or less branch offices.

http://mortgage.nationwidelicensingsystem.org/slr/PublishedStateDocuments/WI-Mortgage-Banker-New-Application-Checklist.pdf (main banker license)

http://mortgage.nationwidelicensingsystem.org/slr/PublishedStateDocuments/WI-Mortgage-Broker-New-Application-Checklist.pdf (main broker license)

http://mortgage.nationwidelicensingsystem.org/slr/PublishedStateDocuments/WI-Mortgage-Banker-Branch-New-Application-Checklist.pdf (banker branch license)

http://mortgage.nationwidelicensingsystem.org/slr/PublishedStateDocuments/WI-Mortgage-Broker-Branch-New-Application-Checklist.pdf (broker branch license)

West Virginia Licenses For Mortgage Brokers and Lenders

The West Virginia Division of Financial Institutions regulates licenses for the state’s mortgage lenders and brokers. Applicants use the NMLS system to apply for either of these licenses. There are also branch licenses for both lenders and brokers. Federally insured banks do not have to get either one of these licenses.

In some states, brokers and lenders need only get licensed for residential mortgage loans. In West Virginia, a similar rule applies. Activities that require a license are those that deal with property used as a dwelling and for personal, family, or household use. Land where a dwelling is expected to be built is also included even if the dwelling is not built at the time of the offer or transaction.

Brokers are those who offer a loan or negotiate its terms or otherwise originate a mortgage. So-called “tablefunding activity” also requires a West Virginia mortgage broker license.

Lenders refer to the makers of a mortgage loan. But purchasers and even mere servicers of these loans must also apply and get licensed as a lender. However, there are quite a few exemptions in the lender license law. They include insurance companies, federally insured banks, licensed consumer lenders, nonprofit community development organizations if the loans are for the disadvantaged and are otherwise regulated by the government, government agencies at all levels, and Habitat for Humanity if the activity is for low-income housing in West Virginia.

Each license has certain financial and bond requirements. Brokers must have a net worth of at least $10,000, and their surety bond ranges from 50K to 150K. Lenders have a much higher net-worth minimum of $250,000. Their bond requirement is from 100K to 250K. A financial statement completed no more than 90 days before the application must be submitted.

In terms of expertise, brokers must have licensed mortgage loan originators to work with customers. Lenders may also need licensed MLOs to perform certain tasks.

Basic fees are as follows:

main office of mortgage broker – $450
main office of mortgage lender – $1350
branch office of mortgage broker $450
branch office of mortgage lender – $1350

Lenders and brokers must both have a designated on-site manager. Some additional paperwork must usually be submitted, such as proof of incorporation, registration of trade names, and the like. Use the checklists on the following pages to make sure you are preparing to present all required documents:

http://mortgage.nationwidelicensingsystem.org/slr/PublishedStateDocuments/WV-MB-New-App-Checklist.pdf (West Virginia mortgage broker license application checklist)

http://mortgage.nationwidelicensingsystem.org/slr/PublishedStateDocuments/WV-ML-New-App-Checklist.pdf (lender license checklist)

Washington License Requirements For a Mortgage Loan Originator

Employees originating mortgages for several types of companies in Washington must get a mortgage loan originator (MLO) license. These also include independent contractors in some cases. The employers for which an MLO license will be required of such employees or independent contractors include the following: licensed mortgage brokers, licensed consumer loan companies, exempt mortgage brokers, exempt consumer loan companies, and credit union service organizations. Employees of banks or credit unions who originate mortgage loans may but are not required to get an MLO license.

MLO licenses are mandatory if any of the customers are Washington residents or any of the property is located in the State of Washington.

Applicants have no specific financial requirements in terms of net worth or a bond. However, they must pass a credit and background check.

The other requirements relate to an educational course and licensing exams. 22 hours of education is required, with 4 of that in Washington law. This is the rule at the time of this 2017 post. It changes from time to time. But as long as you sign up for an approved training provider, they can ensure that you complete the currently required number of hours.

3 different combinations of passing exam scores are accepted. You can pass the SAFE National and Washington tests, SAFE National and Stand-alone Uniform State Test, or the SAFE National with UST.

Although you can apply in Washington as an independent contractor, the employer you end up working for must still sponsor you. Talk to the employer about that sponsorship registration process. You can apply before getting hired or signed on as an independent contractor. But you can’t conduct any business until you are sponsored.

The license fee is $155. Extras include $15 for a credit report if you had not ordered one in the past 30 days and about $36 for a criminal background check.

If you are not a US citizen, you must at least provide proof that you currently have the right to work in the United States.

The following link has a checklist for the Washington mortgage loan originator license. The second link has additional instructions on the MU4, which is used for MLO applications in the NMLS system.

http://mortgage.nationwidelicensingsystem.org/slr/PublishedStateDocuments/WA-Loan-Originator-New-Application-Checklist.pdf

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