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)