Mortgage Lender License Requirements

Mortgage Lender License Requirements vary by state, but anyone who wishes to as a correspondent mortgage lender must adhere to the license requirements of the state in which they want to originate loans and lend.

Mortgage Lender License RequirementsTypical amongst the license requirements are:

  • an application form,
  • a non-refundable state fee, commonly worth $500 but subject to difference depending on state.
  • Audited financial statements showing a verified annual net worth as a condition of licensure
  • A surety bond typically $10,000 payable to the respective state and on  file.

Anyone applying to become a correspondent mortgage lender will also have to show evidence they exist as a registered lawful entity in the US and their primary representative has received certain hours of classroom instructions in financing (around 25).

The instruction requirement is waived / satisfied if license is being renewed and the principal representative actually has had a year of practice. It is also waived if the same person holds a mortgage broker license for this state.

It is very possible that you will be asked for fingerprints for you and any partner, officer, entity co-owner, etc. Also, the correspondent mortgage lender license will last for the remaining part of the 2-year period in which license was issued.

A limitation of the correspondent mortgage lender license is the ban to service a home loan for more than 4 months after it has been acquired. The cannot be transferred, and can be cancelled if mistakenly issued. A most important requirement for obtaining a correspondent mortgage lender license is passing a written or electronic test over financing transactions, the fee for the test should not be over $100. The test is waived if the main representative holds a mortgage broker’s active license for the state.

All of the above may sound complicated, but through our company, Brokers that wish to become direct lenders or bankers may rely on us to get them approved as a correspondent lender with an initial warehouse line of $1 million.  We can assist in all of the paperwork filing and with our assistance, you will be eligible to originate most types of loans including FHA loans, and you will be closing the loans in your own name.  As a direct lender, you will have the opportunity to increase your revenue per file, and you will still maintain the processing of your files as you currently do.

Please contact us for additional information on the process by completing the information Here

Mortgage Bankers Association