Can I work as a mortgage broker without a license?

No. Anyone who takes residential mortgage loan applications or offers and negotiates loan terms for compensation must hold a state loan originator license or, if employed by a federally regulated bank or credit union, a federal registration. A person acting as a mortgage broker also needs a state mortgage broker license; Florida, for example, requires every person acting as a mortgage broker to be licensed. Limited exemptions exist for purely clerical staff and certain government and nonprofit employees.

No. A person who directly or indirectly solicits, processes, places, or negotiates mortgage loans for a borrower must hold a mortgage broker license under the Alabama Mortgage Brokers Licensing Act, which requires a $600 application fee and evidence that at least one principal or executive officer has at least two years of mortgage industry experience within the previous four years. Individuals employed by a licensed broker and acting within the scope of their employment are excluded from the broker requirement, but mortgage loan originators must still be licensed under Alabama's SAFE Act.

No. California law prohibits anyone from engaging in the business of a finance lender or broker without a license, and real estate licensees who arrange residential loans must hold a Mortgage Loan Originator (MLO) endorsement. Conducting mortgage origination without the required license or endorsement triggers penalties of $50 per day for the first 30 days and $100 per day after that, up to $10,000.

No. Florida law requires every person who acts as a mortgage broker to hold a mortgage broker license under Chapter 494, and individuals who originate loans need a loan originator license. Narrow exemptions exist, including a seller taking back a purchase-money mortgage on their own property, someone servicing loans solely as an agent for a government agency, and a person making nonresidential loans sold only to institutional investors. The Office of Financial Regulation also states that most commercial lending is exempt from Chapter 494.

No. Indiana requires an MLO license for anyone who, for compensation, takes a residential mortgage application or offers or negotiates the terms of a residential mortgage loan. Loan processors and underwriters working exclusively as employees of licensed companies are excluded from the requirement. Working without a license can bring civil penalties of up to $10,000 per violation.

No. Since July 31, 2009, Louisiana law prohibits engaging in residential mortgage lending activity without holding a license as a mortgage lender, broker, servicer, or loan originator, plus a unique identifier. Exemptions are listed in R.S. 6:1087, and employees of federally regulated depository institutions register federally rather than obtaining a state license. A person falls outside the law only if not regularly engaged in the activity.

No, not generally. Michigan law prohibits acting as a mortgage loan originator without a license, and even one residential mortgage loan requires licensure. Limited exceptions exist, including real estate brokers acting without compensation beyond a customary commission, certain nonprofit employees, and individuals doing only seller financing of three or fewer transactions in a 12-month period.

No. Oregon requires a license to take even one mortgage loan application or offer or negotiate loan terms for Oregon residents, Oregon property, or from a fixed Oregon location, unless federal Temporary Authority applies. Loan originators file Form MU4 through NMLS, and the Division of Financial Regulation must accept a sponsoring employer's request before an originator may begin originating loans.

No. In Virginia, anyone who takes applications for, or offers or negotiates terms of, residential mortgage loans on Virginia dwellings must hold a state MLO license or a federal registration. Employees of banks and credit unions register through NMLS under federal law instead of obtaining a state license. Education, testing, and licensure must come first, because Virginia does not permit originating loans while still completing the requirements.

No. In Washington, a mortgage loan originator (MLO) license is required for individuals who originate loans for licensed mortgage brokers and consumer loan companies, and anyone who holds themselves out to the public as able to perform loan origination activities is treated the same way. An inactive license does not permit loan origination, and a license cannot be transferred, loaned, or shared with anyone else.