Questions about mortgage broker licensing
Questions and answers about Mortgage Broker Licensing
The states differ on whether a Mortgage Broker even needs a mortgage license, whether the Mortgage Broker can loan on both 1st and 2nd mortgages, or whether a physical office in the state is required. The uniqueness of the mortgage licensing laws of each state is expressed in the diversity of the laws, rules, regulations that each state adopts. The various mortgage licensing laws also pertain to the employees of the Mortgage Brokers, and whether they, too, need a mortgage license. As business over the internet increases, the mortgage licensing laws are becoming more lenient on this physical office requirement. States also differ on how much continuing education they require of the Mortgage Brokers.
Who can apply for Mortgage Licensing?
Any Mortgage Broker that has been in the industry for atleast two years. Most new students have questions about their courses and licensing requirements as well as the licensing procedure. You will also find our course cancellation policy outlined below. We have attempted to answer the most frequently asked questions for both areas; the Mortgage Broker Courses and Mortgage license requirements and the Real Estate Courses and license requirements.
How does a Mortgage License work?
Basically the mortgage broker, once licensed is now his own bank. In general, applicants must have at least 3 years of experience in the mortgage lending business and have completed any required courses for continuing education as mandated by COMAR.09.03.06.17 or have completed 40 hours of classroom education and pass a written examination. Applicants must also undergo criminal background checks, pay various fees, and meet other requirements under FI § 11-605. Please fill out this short form and the MBSD Group will contact you immediately. So, that's pretty much how a mortgage license works.
What types of Mortgage Broker Licensing are there?
A Mortgage Broker is a corporation, partnership, limited liability company (LLC) or individual who, on behalf of a loan applicant or an investor (a mortgagee or a land contract vendor), and for commission, money, or other thing of value, finds a loan or negotiates a land contract, loan, or commitment for a loan, or engages in table funding.
"Negotiate" means to discuss, explain or present the terms and conditions of a loan or land contract with or to a loan applicant (does not include making an underwriting decision on a loan).
"Finds a loan" means to assist a loan applicant in locating a lender for the purpose of obtaining a loan for the applicant and to make arrangements for a loan applicant to obtain a loan.
"Table funding" means a transaction in which a person conducts a loan closing in the person’s name with funds provided by a third party and the person assigns the loan to the third party within 24 hours of the loan closing.
"Originate" means to make an underwriting decision on a loan and close a loan.
A Mortgage Banker is a corporation, partnership, limited liability company (LLC) or individual who either originates loans for another person or for itself as payee on the note, sells loans or interests in loans to another person, services loans or land contracts, or provides escrow services.
A Loan Originator is an individual who, on behalf of a mortgage banker or mortgage broker, finds a loan or negotiates a land contract, loan, or commitment for a loan. For Loan Solicitor information, see 
legislation changes (PDF: 4,328 KB / 78 pages). Any individual, including an officer, W-9 subcontractor employee, or a W-2 hourly or salaried employee, who performs such activities on behalf of a mortgage banker or mortgage broker, must be licensed as a loan originator.
How do I get a Mortgage License?
Control Persons that are already licensed as Individuals do not need to submit any further information, fingerprints, or fees, but must be listed on the Entity Application as a Control Person. Control Persons that transact the business of residential mortgage lending in the State of Utah must, in addition to being listed as a Control Person, obtain a license as an Individual if they haven’t already done so.
For an Individual: 1) Individual Application forms (will be generated by the testing service after successful completion of mortgage lender exam), signed, with all blanks filled in and all applicable boxes checked; 2) original certificate of completion of 20hrs prelicense education from one of the state approved providers; 3) two fingerprint cards; 4) fingerprint letter of waiver (issued by testing service); 5) $200 Individual Application fee, $36 recovery fund fee and $39 fingerprint processing fee (do not need to be separate checks).
What is a “properly completed application?”
For an Entity: 1) Entity Application form with all blanks filled in and boxes appropriately checked, including signature and information for the control person; 2) Certificate of existence from the Utah Division of Corporations showing the Entity is current and in good standing and listing the Entity’s officers, or evidence of registration with such Division to do business in Utah; 3) two fingerprint cards for the Control Person – fingerprint cards must contain printed name, signature, date and place of birth, social security number, home address, citizenship, aliases, and personal description information; 4) fingerprint letter of waiver; 5) $200 Entity Application fee, $50 recovery fund fee, and $39 fingerprint processing fee for the Control Person (do not need to be separate checks).
If any of the items are missing, your application is incomplete and will not be processed. Your application will not be effective until the date that all completed required paperwork and all fees are submitted. And that's how you get a mortgage license.
posted by Bill at 5:39 AM
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