General Mortgage Broker/Lender Requirements

Mortgage Broker/Lender License General Requirements

Here are the steps generally required to obtain a Mortgage Broker License:

Applying for a Mortgage Broker/Lender License

  • NMLS Application fee
  • Credit Report fee
  • Criminal background check
  • Registered Agent
  • Qualified Individual
  • Surety Bond Requirements
  • In State branch Requirement (if applicable)
Experience Qualifications
Most states require one to three years experience before you can able to be a licensed mortgage broker.

 

Education and Testing Requirements 

You are also required to take 20 hours of classes through a state/NMLS-approved course provider. Upon completion of your education requirements, you will have to pass the National in-person test named “SAFE Mortgage Loan Originator Test – National Component with Uniform State Content” before you can apply for your license.

A test score of minimum of 75% is required. Qualified Individual Requirement Every mortgage brokerage firm is required to hire someone who will oversee the legal/regulatory requirements by ensuring that the company operates lawfully and follows all applicable rules and regulations. The title is referred to as a “qualified individual.” Typically, the QI is the person applying for the mortgage broker license. 

To be a QI, you must:

Live where the primary office is located Have the required industry-related experience Fulfill the obligatory educational classes Pass the exam Execute a credit history report and criminal background check Be either an owner of the company or a salaried employee.

Surety Bond Requirements 

Most states require a surety bond with the state you’re applying for to protect your clients from damages resulting from fraud, misrepresentation, and other forms of wrongful injury caused by you or your employees. The amount of the bond will depend on your previous year’s origination volume and if you’re applying for a broker or lender license. The surety bond requirement typically ranges between $10,000 and $150,000 depending on your state.