Commercial and Residential Mortgage Lending

Overview

Mortgage lender licensing laws are complex and varied among the states. New and expanding businesses can be overwhelmed by the research and preparation required to become properly licensed. LicenseLogix has experience navigating the commercial and residential mortgage lender licensing process. While most state regulators provide public information concerning mortgage licenses, such information is often inaccessible and lacks standardization. Licenselogix will streamline and simplify this licensing for your business.

Background

The Secure and Fair Enforcement for Mortgage Licensing Act (“SAFE Act”) mandates that every state must license mortgage loan originators according to national standards. The minimum standards include criminal and credit background checks, pre-licensure education, pre-licensure testing, continuing education, and surety bonds. The SAFE Act was designed to enhance consumer protection and reduce fraud by establishing minimum standards for mortgage loan originators. All state licensed and federally registered mortgage loan originators must be registered with the Nationwide Mortgage Licensing System.

Many states differentiate between mortgage loan originators, mortgage loan servicers and mortgage loan brokers. There are additional classifications of licensing requirements for commercial versus residential loans. Furthermore, many state licenses are subject to annual reporting requirements to ensure ongoing compliance.

Ramifications of Non-Compliance

Fraudulent and abusive lending practices in the mortgage market have lead to a spotlight on regulation and enforcement in this industry. Companies that attempt to evade state licensing and consumer protection laws by using illegal lending schemes are at risk for serious penalties and may be shut down by the state. Penalties range from large fines, civil law suits, to possible jail time.

Mandatory registration

Seven New Jersey companies cited for offering loan modification without a license

Make sure lenders are licensed

How we help your business:

  1. Our Mortgage Licensing experts stay up-to-date with changing requirements and forms so you can focus on the job at hand.
  2. You save money because we will complete applications faster (this is our area of expertise!). You don’t waste valuable resources on license applications.
  3. We ensure your application is filed correctly with the proper authority on the first attempt. Dealing with rejections can be time consuming.

More Resources:

- The NMLS Resource Center is the official gateway into the Nationwide Mortgage Licensing System & Registry (NMLS) and provides users with tools, tips, news and updates.
- SAFE Compliance Blog: http://nmlssafeact.wordpress.com/
- MORTGAGES AND MISDEMEANORS: CRIMINAL ENFORCEMENT OF STATE MORTGAGE LENDING LICENSE REQUIREMENTS AND HOMEOWNER PROTECTION


CHOOSE A STATE BELOW FOR SPECIFIC BUSINESS LICENSING INFORMATION:

AL AK AR AZ CA CO CT DC DE FL GA HI IA ID IL IN KS KY LA MA MD ME MI MN MO MS
MT NC ND NE NH NJ NM NV NY OH OK OR PA RI SC SD TN TX UT VA VT WA WI WV WY