Mortgage Broker and Lender/Broker License Qualifications In Wyoming

The Wyoming Division of Banking has 2 similar licenses for brokers and lenders. One is just a mortgage broker license. The other is a combined mortgage lender/broker license. However, each type of license holder must also get a license for branch offices.

The mortgage broker license is for those who assist Wyoming residents in getting a residential mortgage loan. A lender is someone who makes a loan for state residents. If obtaining a lender license, then the lender may also act as a broker without getting the separate broker license. For both of these license types, merely holding yourself out to the public as a provider of these services is sufficient to trigger the license requirement.

Exemptions include those for government agencies, property owners who offer credit in connection with sale of their property, banks, savings and loans, credit unions, trust companies, related subsidiaries of which 80% of the voting stock is held by the bank, etc., attorneys representing clients, and wholesale lenders if the purchase is of a closed residential mortgage that was originally transacted by a licensed entity. These exemptions apply in the case of both broker and lender/broker licenses.

Both licenses have similar surety bond and application fee requirements. The bond is $25,000, and the fee is $500. Although no specific net worth is required, multiple financial statements and related documents must be filed. This also includes a business plan and documents that will be used in connection with the business. So although you can’t start business until you are licensed, you need to have everything ready to go before applying for your Wyoming mortgage license. The Division of Banking wants to know that you know what you are doing and have a plan in place to run a competent business. So they want to see all documents before you are approved to open shop. The application checklists give you a list of the documents they will be looking for. But it would also be advisable to hire a consultant to make sure you have all your ducks in a row before submitting your application.

http://mortgage.nationwidelicensingsystem.org/slr/PublishedStateDocuments/WY-Broker-New-Application-Checklist.pdf (Wisconsin main broker license application checklist)

http://mortgage.nationwidelicensingsystem.org/slr/PublishedStateDocuments/WY-L-B-New-Application-Checklist.pdf (lender/broker license application checklist)

You can find links to the branch mortgage license application checklists on the following page. Fees are $50 per branch office, and there must be a branch manager. The office must be included on a rider that is attached to your main surety bond.

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

Wisconsin Licenses For Mortgage Loan Originators (Including Special Veteran Category)

Wisconsin has 2 kinds of mortgage loan originator licenses. The standard one, which applies to most applicants, who takes a residential mortgage loan or offers such a loan or negotiates its terms. This applies if any such activity is undertaken for the purposes of deriving a salary or profit. The second type of license is available only to Wisconsin residents who are military veterans.

The Wisconsin MLO license for veterans has the same basic requirements, including the education and exam qualifications mentioned below. However, there is a difference in the fees. It is $40 for the veteran license and $280 for the standard license. However, the $15 and $36.25 fees for a credit report and background check are the same whether you apply for the regular or the veteran license.

All mortgage loan originator applicants must have at least 20 hours of approved education. In the case of Wisconsin, there was no requirement to take classes on state law at the time of this 2017 post. However, there are some specific subject-based requirements, including 3 hours of federal law, 3 hours on ethics, 2 hours on lending for nontraditional mortgage products, and 12 hours of mortgage electives. Once again, these educational requirements also apply to the veteran category.

According to the NMLS website, the current exam rule is that Wisconsin applicants must pass the SAFE test with at least a 75% score.

The NMLS website has some tips on preparing for your mortgage license exam. Scroll down and look at Step on the following page.

http://mortgage.nationwidelicensingsystem.org/profreq/testing/Pages/default.aspx

Use the Prometric website to register for your test.

https://www.prometric.com/en-us/clients/nmls/Pages/landing.aspx

As part of the license application, you must identify the mortgage banker or broker that will be employing you after license issuance. You cannot get and maintain an active license as an independent MLO. You must be sponsored by a banker or broker.

The first link below is if you are applying as a veteran. The second link is for all others.

http://mortgage.nationwidelicensingsystem.org/slr/PublishedStateDocuments/WI-MLO-Veteran-New-Application-Checklist.pdf

http://mortgage.nationwidelicensingsystem.org/slr/PublishedStateDocuments/WI-MLO-New-Application-Checklist.pdf

Exemptions:

Those who merely do loan processing and underwriting do not have to get an MLO license. Real estate brokers and licensed attorneys also generally do not need one. VA employees doing their normal duties are also exempt, as are those who only do timeshare credit extensions. Most bank employees and those employed by FCA-regulated organizations are also exempt. Finally, you don’t need an MLO license in Wisconsin to negotiate a mortgage for an immediate family member or for a house in which you are or were living in as your own dwelling.

West Virginia License Qualifications For a Mortgage Loan Originator

There are a couple of types of mortgage loan originators who must get a license in West Virginia from the Division of Financial Institutions. There are also quite a few exemptions. If required to get a license, applicants must meet educational, testing, and financial qualifications.

The first type of MLO that must be licensed includes those dealing with residential mortgage loans. If you take, offer, or negotiate such loans, you must qualify for and obtain a license before engaging in these activities unless you have an exemption. The second type of MLO who must get a license is an independent contractor who does loan processing or underwriting. An employee who does loan processing or underwriting for a broker or lender does not have to get a West Virginia MLO license.

Real estate brokers who are not being compensated for referring loans are exempt. Other transactions that are exempt include timeshare credit extensions, manufactured home clerical work, federally insured bank employees, negotiating for an immediate family member, negotiating for a property that is the person’s own residence, and work of attorneys that occurs in connection with representation of a client. However, lawyers being compensated by a broker would need an MLO license.

As with all or most states, a West Virginia mortgage loan originator must complete credit and criminal background checks. West Virginia has an $80 license application fee. This does not include the credit and background checks, which are $15 and $36.25, respectively. You must have a sponsoring employer before beginning work. However, you may apply before getting a job and have the employer submit a sponsorship request later.

The total educational course requirement is 20 hours in West Virginia. 2 of that must be in state law. As far as exams go, you must either pass the National and WV components of the SAFE test or the WV SAFE test and the National Test Component with Uniform State Content.

There are also general character and fitness requirements and financial responsibility qualifications. But that will be assessed through the credit and background checks. There is no specific net worth requirement or bond that must be submitted to get an MLO license in West Virginia. Use the following checklist when applying for a license.

http://mortgage.nationwidelicensingsystem.org/slr/PublishedStateDocuments/WV-MLO-New-Application-Checklist.pdf

Washington Consumer Loan Company Mortgage License Requirements

One of the mortgage licenses offered by the Washington State Department of Financial Institutions is for consumer loan companies. This particular license is regulated by the Division of Consumer Services. These consumer loan companies may also offer non-mortgage loans to consumers. It is required for mortgages on Washington property or for servicing state residents.

Some entities may be able to get a mortgage broker license instead. And I have written an article on that here. However, if you offer mortgage loans on residential property, then you generally must get a Washington consumer loan company license. If you do get this license, then you are generally exempt from having to obtain the separate mortgage broker license. That is because the CLC license has similar requirements to the mortgage broker license. So it is not really necessary from an administrative or regulatory perspective to require both.

There are 4 different main applications that you must complete to get a Washington consumer loan company license. You must register a corporation with the Secretary of State, get a business license through Washington Business License Services, open an account with the Washington Department of Revenue, and then apply with NMLS for the loan company license. Links for the first 3 applications can be found on the first page below. On the second page, you will see a “New Application” link for consumer loan companies. Also, if you are going to open any branches in addition to the main office, then there is a separate application for branch licenses.

http://www.dfi.wa.gov/consumer-loan-companies/licensing

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

Unlike mortgage broker licenses, you do not have to get a designated broker. However, if you are going to do mortgage loan origination and not just servicing loans, then you must hire and sponsor a licensed mortgage loan originator.

Depending on your situation, you may need a surety bond of up to $150,000. The minimum is 30K, and that’s if you are servicing loans only and not originating or if you only service Washington loans. If you are an existing business but have never done business in Washington, the usual bond amount is 100K. But it’s 30k to 150k, depending on recent loan volume, if you are an existing business that has offered both out-of-state and Washington loans.

Multiple paperwork requirements apply. These include, among others, a financial statement, management chart, proof of fund sources if you are lending money, a full complaint resolution process, and certain website disclosures.

Fees are close to $1200 for a Washington consumer loan company license. This is for the main company office. Fees for branch offices are about $600.

Washington Mortgage Licenses for Company and Designated Mortgage Brokers

The Washington State Department of Financial Institutions is the agency that issues licenses for mortgage brokers. There are 3 relevant broker licenses covered in this article. The standard mortgage broker license is the main one for the company engaging in the brokering activities. This one is for the main office. There is also a branch license required for each additional branch. Finally, there is a designated broker registration process. Each licensed broker (company) must have a qualified designated broker. And that designated broker must register as an addition to the standard company license application.

Note On Consumer Loans:

Some lenders in Washington offer mortgages through a consumer loan company license. In that case, you might not have to get a mortgage broker license. If you service Washington residential mortgage loans, you generally must get the consumer loan company license. I will write a different article on this license. It can be found by using the “Washington mortgage license” tag below this article.

A mortgage brokerage applies for a Washington license through the NMLS. However, the first step is standard business registration with the Secretary of State. This applies to all businesses, not just mortgage brokers.

A $20,000 surety bond is required of all applicants. A trust account may or may not be required to get a license. You can read through the application materials to make this determination.

Control persons who are not already licensed in Washington as a mortgage loan originator must submit fingerprints. If you are an MLO, you don’t have to resubmit fingerprints since you would have already undergone this background-check process.

At the time of this post, the total mortgage broker license application fees are $1001. This includes both Washington state and NMLS fees.

Branches refer to places that either offer mortgages to Washington residents or mortgages on Washington property. This applies even if the office is located out of state. But out-of-state offices that do not offer mortgages to state residents or for property in Washington do not need a branch license even if the main office is required to have a Washington mortgage broker license.

You do not have to get a separate 20K bond for each branch. But the original bond may need a rider attached to it to cover one or more branches.

Washington has a Designated Broker Test. In addition to passing this exam, the designated broker must have 2 years of residential mortgage experience.

http://www.dfi.wa.gov/mortgage-brokers/designated-broker-test

A designated broker is different than a mortgage loan originator. The DB may not engage in mortgage loan origination unless and until he also qualifies for and receives a Washington MLO license. I have a different article on Washington MLO licensing. It can also be found using the tag below for Washington mortgage licenses.

In addition to the above, some individuals must also submit a credit report. And a DB must be at least 18, have a high school education, and be legally authorized to work in the United States.

Use the “New Application” links on the NMLS Washington page to apply for these mortgage broker and DB licenses.

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

Mortgage Company Licenses In Vermont – Lender, Commercial Lender, Loan Servicer, And Broker (Including Sole Proprietor)

Vermont requires a license for mortgage that depends on exactly what activities the company is engaging in (lender, commercial lender, servicer, and broker). The licensing agency is the Department of Financial Regulation.

A commercial lender license, which costs about $1100, is for both mortgages and other types of commercial loans. But it is only for companies who do only commercial loans.

http://mortgage.nationwidelicensingsystem.org/slr/PublishedStateDocuments/VT-CLL-New-Application-Checklist.pdf

A regular lender license, which will cover both residential and commercial mortgages and other types of loans, is $2100. This one has a surety bond requirement of at least 50K per license. It can be higher than that if you have a high loan volume for the previous year.

http://mortgage.nationwidelicensingsystem.org/slr/PublishedStateDocuments/VT-LL-New-Application-Checklist.pdf

The Vermont loan servicer license is $2100, and the bond amount is at least $100,000.

http://mortgage.nationwidelicensingsystem.org/slr/PublishedStateDocuments/VT-Loan-Servicer-New-App-Checklist.pdf

There are two kinds of broker licenses in this state. There is the general broker license and the one for sole proprietors. Someone would get the sole proprietor license when he or she is the only person authorized to engage in the mortgage activities for the company.

The regular license is $1100, and the sole proprietor is $600. Regardless of which license is being sought, the applicant must have a surety bond of at least 25K. Use the following checklists to apply for the appropriate Vermont mortgage broker license.

http://mortgage.nationwidelicensingsystem.org/slr/PublishedStateDocuments/VT-MBL-New-Application-Checklist.pdf (regular type)

http://mortgage.nationwidelicensingsystem.org/slr/PublishedStateDocuments/VT-MBSole-New-Application-Checklist.pdf (for sole proprietors)

Virginia Mortgage License Requirements For Broker, Lender, Loan Originator, And Transitional Loan Originator

There are two main kinds of mortgage company licenses in Virginia. They are for brokers and lenders. There is also an individual license for loan officers (originators). And within that license type, there is a transitional mortgage loan originator for people moving from other states.

A Virginia mortgage broker license fee is $600, with background check fees for control persons running about $37. A credit report is $15. Although no specific experience is required, reference letters must be submitted which discuss the applicant’s experience. So someone in the company is probably going to need at least minimal mortgage experience.

There is a $25,000 surety bond requirement. If you are applying for the lender license at the same time, then submit a single 50K bond for both licenses.

http://mortgage.nationwidelicensingsystem.org/slr/PublishedStateDocuments/VA-Broker-License-New-App-Checklist.pdf

For lender applicants, the fees are the same. But lenders must have access to $200,000 in funds to run their mortgage lending business. This could be cash on deposit or a line of credit. Lenders must have a 50K bond, and this is whether or not they are also applying as a broker. The rules of references are the same as for brokers.

http://mortgage.nationwidelicensingsystem.org/slr/PublishedStateDocuments/VA-Lender-License-New-App-Checklist.pdf

There is an extra $170 fee for each branch. Use the following checklist whether you are applying as a broker or lender. It’s the same application.

http://mortgage.nationwidelicensingsystem.org/slr/PublishedStateDocuments/VA-Branch-License-New-App-Checklist.pdf

A mortgage loan originator license in Virginia is $180 plus the credit report and background check. 20 hours of education and a mortgage exam are required.

Originators or their employees must generally submit a surety bond. Read the checklist for specific instructions. It’s a little more complicated than for broker and lender bonds.

Certain individuals will be rejected for a Viriginia MLO license based upon financial responsibility issues (see list in next sentence). But applicants can submit an explanation if they have outstanding judgments of over $2000, delinquent or charged-off accounts over 3K, tax liens over 1K, or foreclosures within the 7 years before the application date.

http://mortgage.nationwidelicensingsystem.org/slr/PublishedStateDocuments/VA-MLO-New-Application-Checklist.pdf

The transitional mortgage loan originator license is about $230 and lasts only up to 120 days. During this time, the temporary licensee needs to complete the education and testing requirements for a regular MLO license.

http://mortgage.nationwidelicensingsystem.org/slr/PublishedStateDocuments/VA-Transitional-MLO-License-Individual-New-App-Checklist.pdf

Tennessee Mortgage Lender, Broker, Servicer, And Originator License Requirements

The Tennessee Department of Financial Institutions is the administrative agency that provides state mortgage licenses. There are 2 main license types – the company-level mortgage license and individual mortgage loan originator license. However, companies must also get a branch license for any separate branch offices.

The general mortgage license in Tennessee applies to lenders, brokers, and servicers. In many states, these are completely different licenses. But they all fall under the same one in this state. If you do more than one of these activities, then you will need only one license.

Even though only one license is needed, lender and servicer applicants need a 200K surety bond. They can also do brokering without an extra bond. Someone who only brokers mortgages needs only a 90K bond.

All applicants for this license need at least 25K in net worth plus an additional 25K in net worth for any branch offices.

The fee is $1129. Branch office fees were only $20 at the time of this post.

Although not in the checklist for this Tennessee mortgage license, NMLS separately says that you may need a qualifying person with at least 1 year of experience. To be on the safe side, at least one control person with this company should be a licensed loan originator.

http://mortgage.nationwidelicensingsystem.org/slr/PublishedStateDocuments/TN-Mtg-License-New-Application-Checklist.pdf TN mortgage license application checklist)

http://mortgage.nationwidelicensingsystem.org/slr/PublishedStateDocuments/TN-Branch-Auth-New-App-Checklist.pdf (branch office license checklist)

Mortgage loan originators in Tennessee pay fees of about $230 to get a state license. For this license to be active, you must be sponsored by a mortgage company. Employees who merely process the paperwork or underwrite do not need this license.

Before applying, candidates need to complete 20 hours of mortgage loan originator education. 2 of the 20 must be in Tennessee law. For the exam, which is required, you can take the National Test Component With Uniform State Content. But a passing score on the SAFE exam is also acceptable. But it must include passing scores on both the National and Tennessee Components or National and Stand-alone UST Components. You will also have to have positive records as far as a credit report and criminal background check.

http://mortgage.nationwidelicensingsystem.org/slr/PublishedStateDocuments/TN-MLO-New-Application-Checklist.pdf

South Dakota License Requirements For Mortgage Lender, Brokerage, And Loan Originator

South Dakota has 3 main kinds of mortgage licenses, plus a branch license for lenders. In addition to the main-office lender license, brokers get a brokerage license for their main office. Individual loan officers must get a mortgage loan originator license. The Division of Banking is the licensing agency. All licenses apply to both residential and commercial mortgages.

The lending license is required of both lenders and servicers and those who do both. There is a $25,000 surety bond requirement, and all control persons must submit to state and federal background checks. If the company had 25 to 100 million in loan volume the previous year, the bond is 35K. If it was even more than that, the bond is 50K. The license fee is $850.

http://mortgage.nationwidelicensingsystem.org/slr/PublishedStateDocuments/SD-ML-New-Application-Checklist.pdf

At $600, the mortgage brokerage license is a little less. The surety bond requirement has the same exact rules.

http://mortgage.nationwidelicensingsystem.org/slr/PublishedStateDocuments/SD-MB-New-App-Checklist.pdf

Checklists on NMLS say that you do not have to declare a qualifying person in South Dakota for either a mortgage lender or broker.

The South Dakota rule for mortgage loan originator education is the typical 20 hours. But there are more specific requirements. You must have 3 hours in federal law, 3 hours in ethics, and 2 hours in nontraditional mortgage products. These 8 hours can be part of the 20. They don’t have to extra hours.

This state also has the same 3 options for testing that most jurisdictions have. You can take the SAFE test National and South Dakota Components, SAFE test National and Stand-alone UST Components, or the National Test Component With Uniform State Content.

You cannot be a totally independent contractor as an MLO because you must be sponsored by a lender, brokerage, or exempt company. The fee for the license is $180 plus the standard background checks and credit report.

http://mortgage.nationwidelicensingsystem.org/slr/PublishedStateDocuments/SD-MLO-New-Application-Checklist.pdf

South Carolina Mortgage Loan Originator (And Qualified Originator) License

South Carolina has several different kinds of mortgage loan originators. 2 of these are what they call mortgage broker loan originators and mortgage broker qualified loan originators. The regular “mortgage loan originator” is someone who works for a licensed lender/servicer, not a licensed broker. Read my other article for South Carolina company mortgage license requirements.

The regular loan originator license (lender employees) is $80 plus $36.25 for a background check and $15 for a credit report. There is also a $38.50 state criminal background check. The lending company must sponsor the MLO before the Board of Financial Institutions will issue this individual license.

This MLO license requires 20 hours of education and passage of an exam. At the time of this writing, there were two test options. You could take the SAFE test’s National and South Carolina State Components. Alternatively, you can take and pass the SC State Component of the SAFE test plus the National Test Component With Uniform State Content. These rules tend to change over time. So check for the current exam rule when you are taking your mortgage classes.

http://mortgage.nationwidelicensingsystem.org/slr/PublishedStateDocuments/SC-BFI-MLO-New-Application-Checklist.pdf

A mortgage broker loan originator is an employee of a licensed broker, while a qualified originator is someone who is associated with a single licensed broker (usually this means an independent contractor).

The mortgage broker MLO license has essentially the same qualification rules as the lender MLO type. But the qualified originator has a higher fee of $130. Also, unlike the other MLO licensees, a mortgage broker qualified loan originator must submit a $25,000 surety bond. But other than that, the education and testing qualifications are the same as for the 2 regular MLO license types in South Carolina.

http://mortgage.nationwidelicensingsystem.org/slr/PublishedStateDocuments/SC-DCA-QMLO-New-App-Checklist.pdf