Do mortgage loan processors need to be licensed?

Only independent-contractor loan processors and underwriters must be state-licensed. A supervised processor or underwriter who performs clerical and support duties at the direction of a state-licensed or registered loan originator, and who does not hold themselves out to the public as able to perform origination activities, is exempt under the SAFE Act. The dividing line is whether the person offers or negotiates loan terms.

It depends on how they are employed. A loan processor who works as an employee of a company does not need a separate license. But in Alaska, a loan processor or underwriter who works as an independent contractor must hold the Alaska mortgage loan originator license, per the state's NMLS license checklist.

It depends on the working arrangement. A loan processor or underwriter who is an employee working at the direction and under the supervision of a Delaware-licensed lender (Chapter 22) or mortgage loan broker (Chapter 21) does not need an MLO license. A loan processor or underwriter working as an independent contractor must obtain and maintain an MLO license, submitting the application through NMLS before conducting Delaware business.

In DC, an individual who engages solely in loan processing and does not hold themselves out to the public as able to perform mortgage loan originator activities is exempt from licensure (D.C. Code § 26-1103). Independent contractor loan processors and underwriters are different: D.C. Code § 26-1101(5A) defines them as individuals required to maintain an MLO license.

It depends on how they work. Hawaii requires all loan processors who act as independent contractors to be licensed as mortgage loan originators under Chapter 454F. Employee processors who perform clerical or support duties under the direction and supervision of a person licensed or exempt under that chapter do not need a license.

It depends on how the processor works. A loan processor or underwriter who is an employee and performs only clerical or support duties does not need an MLO license. A loan processor or underwriter who works as an independent contractor must obtain and maintain a mortgage loan originator license in Mississippi.

North Dakota does not require a license for every loan processor. A processor who works as an employee performing clerical or support duties under supervision is not a mortgage loan originator under ND Century Code 13-10-02(5). However, an independent-contractor loan processor or underwriter must obtain and maintain a mortgage loan originator license under section 13-10-03.3.