Mortgage License Compliance
A license is required to become a mortgage loan officer; licenses are generally sanctioned by a state governing body. Each state has its own set of rules to adhere to; however, there are a number of general rules that apply across country.
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Business Registration
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The mortgage business must be registered as a limited liability company. For full registration you will require a minimum of two employees. The process involves the registration of the business name, type of business, employees and financial records for tax purposes. A small fee is also required.
Senior Officer
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Before you can qualify for a license you will need to recruit a mortgage sales person who has a minimum of three years' experience in the industry. The senior officer will act as an overseeing member of the LLC to guarantee compliance with the banking regulations is identical to your business.
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Location
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It is illegal to run a mortgage lending business from a personal residence. You must provide evidence to the regulating bodies that you are running the business from a commercial property.
Investment
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You must have investors willing to finance your mortgages; they must write to the licensing committee detailing how they intend on financing your business.
Cost
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You must have a minimum of $75,000 available after all start-up costs have been accounted for. The licensing body will also require that you demonstrate experience in the mortgage business.
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References
- Photo Credit sign. loan sale image by L. Shat from Fotolia.com
