Do mortgage underwriters need a license?

It depends on how the underwriter works. A supervised underwriter who performs clerical or support duties at the direction of a state-licensed or registered loan originator, and does not represent to the public that they can perform origination activities, is not required to be state-licensed. An independent contractor who underwrites residential mortgage loans must hold a state license as a state-licensed loan originator.

Yes, if they work as independent contractors. Under the Alabama SAFE Act, independent-contract loan processors and underwriters must obtain a mortgage loan originator license. Underwriters who are supervised employees of a licensed company are excluded from the MLO definition and do not need their own license. The company itself must be licensed under the Mortgage Brokers Licensing Act or the Consumer Credit Act, which governs processing and underwriting activity.

Sometimes. In Alaska, a loan processor or underwriter who is an independent contractor must hold the Alaska mortgage loan originator license, according to the state's NMLS license checklist. The same rule applies to independent-contractor loan processors.

No, in most cases. Arizona requires a loan originator license only for people who, for compensation, take residential mortgage loan applications, offer or negotiate loan terms, or negotiate loan modifications on a borrower's behalf. Underwriters evaluate and decision loans rather than performing those activities, so the loan originator license does not apply to them.

No, in most cases. Colorado law exempts loan processors and underwriters who are employees (not independent contractors) and who do not represent to the public that they perform loan-originator activities. However, an independent contractor may not work as a loan processor or underwriter without a state-licensed loan originator license. Purely clerical support staff working under a licensed individual also do not need a license.

Yes. Connecticut requires a separate loan processor and underwriter license, a rule distinct to the state. Employees of a licensed lender or broker who process or underwrite loans at the direction and under the supervision of a licensed mortgage loan originator are exempt. Licensed loan processors and underwriters must register with NMLS and complete the same 21 hours of approved prelicensing education required of mortgage loan originators.

Only underwriters who work as independent contractors need a Delaware mortgage loan originator license. An underwriter who is an employee working at the direction and under the supervision of a licensed lender or mortgage loan broker does not need one. The Delaware Office of the State Bank Commissioner applies the same rule to loan processors.

In DC, it depends on the role. Independent contractor loan processors and underwriters must hold a mortgage loan originator license under D.C. Code § 26-1101(5A). An individual who works solely in loan processing or underwriting, and does not hold themselves out to the public as able to perform mortgage loan originator activities, is exempt from licensure.

No, in most cases. Georgia exempts an exclusive W-2 processor or underwriter who works for a licensed mortgage broker or lender and does not take loan applications or negotiate terms with borrowers. If the underwriter also assists consumers in applying for or obtaining a residential mortgage loan, a Mortgage Loan Originator license from the Georgia Department of Banking and Finance is required.

It depends on how the underwriter works. An underwriter or loan processor who is an employee performing clerical or support duties at the direction of a person licensed under Hawaii's Chapter 454F does not need a license. An underwriter or loan processor who acts as an independent contractor must be licensed as a mortgage loan originator, as must anyone who originates mortgage loans rather than performing purely support duties.

Yes, if the underwriter works as an independent contractor. Idaho requires a Mortgage Loan Originator License for a loan processor or underwriter who is an independent contractor, or a W-2 employee of an Exempt Entity Registrant. An underwriter employed by an Idaho Regulated Lender is sponsored by that lender. An MLO in Approved-Inactive status, without a valid sponsorship, must not perform contract underwriting or processing activities.

Illinois requires a mortgage loan originator (MLO) license only for individuals who, for compensation or gain, take a residential mortgage loan application or offer or negotiate loan terms. Underwriting is not among those activities. If an underwriter also takes applications or negotiates terms, the license requirement applies to those duties.

No, not always. In Indiana, loan processors and underwriters who work exclusively as employees of a licensed or exempt mortgage company are excluded from the mortgage loan originator definition. An underwriter who is not an employee of a licensed or exempt person must obtain an MLO license and unique identifier to engage in residential loan-originating activity.

It depends on how the underwriter is employed. An independent-contractor loan processor or underwriter, meaning one who is not a W-2 employee of a licensed company, must obtain an Iowa mortgage loan originator license and meet the surety bond requirement before the license is issued. A processor or underwriter who is a W-2 employee of a licensed company does not need the license.

No, not if you perform clerical or support duties as an employee at the direction and supervision of a licensed or exempt person. An underwriter needs a loan originator registration only if they offer or negotiate loan rates or terms, counsel consumers about rates or terms, or represent to the public that they can perform loan originator activities.

Yes, in some cases. In Louisiana, an independent contractor working as a loan processor or underwriter is subject to the Louisiana S.A.F. Residential Mortgage Lending Act and must be separately authorized by filing a Form MU4 through the Nationwide Multistate Licensing System (NMLS). Processors and underwriters employed by third-party companies do not require sponsorship, but they must still file the MU4 if they work as independent contractors.

Yes, in most cases. Federal rules under Regulation H require independent-contractor loan processors and underwriters to hold a state mortgage loan originator license unless they perform only clerical or support duties. In Maine, the Bureau of Consumer Credit Protection issues that license. Underwriters employed by federally regulated banks and credit unions register through NMLS instead.

In Maryland, a person acting solely as a mortgage loan processor or underwriter does not need a mortgage loan originator (MLO) license. The exclusion does not cover independent contractors: a processor or underwriter who works as an independent contractor is treated as engaging in MLO activity and must be licensed.

Most loan processors and underwriters do not need a Massachusetts Mortgage Loan Originator license when they act as employees. The exemption does not extend to independent contractors, and an underwriter who takes residential mortgage loan applications or negotiates loan terms for compensation does need the license.

No. Loan underwriting is not covered by the SAFE Act licensing requirement, so mortgage underwriters do not need a license. In Michigan, the mortgage loan originator license applies to individuals who, for compensation, take a residential mortgage loan application or offer or negotiate the terms of a residential mortgage loan.

No. Missouri law excludes loan processors and underwriters acting solely in that capacity from the definition of a mortgage loan originator, so they do not need an MLO license. A person crosses into licensed activity only when, for compensation, they take a residential mortgage loan application or offer or negotiate loan terms.

It depends on their role. Under NRS 645B.0125, loan processors and underwriters performing clerical or ministerial tasks as employees are exempt from Nevada MLO licensing. Independent-contractor processors and underwriters associated with a mortgage company or certificate-of-exemption holder must hold an MLO license.

No. New Jersey does not require a mortgage loan originator (MLO) license for loan processors or underwriters who perform solely clerical or support duties as supervised employees. The license is required once an individual takes a residential mortgage loan application or offers or negotiates loan terms for compensation.

It depends on how they work. Underwriters who contract independently on 1-4 family residential mortgage property in New York, along with independent contractor processors and their employees, must hold a mortgage loan originator (MLO) license. Employees of a registered broker, licensed banker, or exempt organization do not need a separate mortgage broker registration for assisting in the business, but MLO licensing under Banking Law Article 12-E applies separately.

No. An individual who acts solely as a loan processor or underwriter is excluded from North Carolina's mortgage loan originator definition. However, a company that provides contract processing or underwriting services must register as a Mortgage Origination Support Registrant with the North Carolina Office of the Commissioner of Banks.

No. Loan processing and loan underwriting are not covered by the SAFE Act licensing requirement, which applies to individuals who, for compensation or gain, take residential mortgage loan applications or offer or negotiate loan terms. An underwriter needs a license only if the job also includes those activities.

No, in most cases. Pennsylvania's Mortgage Licensing Act excludes employees who solely process or underwrite loans for a licensed or exempt company from the definition of a mortgage originator. An independent processor or underwriter who also performs origination activities, such as taking applications or negotiating loan terms, must hold the mortgage originator license.

It depends on the employment relationship. Processors and underwriters supervised by a licensee are exempt from South Carolina loan originator licensing. Independent-contractor processors and underwriters must comply with the Licensing of Mortgage Brokers Act and are prohibited from originating mortgage loans. Under the state's lender statute, independent contractors, except exempt persons, must be licensed separately.

No. Under the SAFE Act, loan processing and loan underwriting are not covered activities. Only individuals who, for compensation or gain, take a residential mortgage loan application or offer or negotiate loan terms must hold a mortgage loan originator license. An underwriter whose role stops at underwriting therefore does not need a Tennessee MLO license.

No. Utah's loan originator definition does not include an individual engaged solely as a loan processor or underwriter, so underwriting alone does not require an MLO license. If the role also includes originating or servicing residential mortgage loans, the state's licensing requirements apply.

In some cases, yes. Washington requires an MLO license for an individual who works as an independent contractor loan processor or underwriter, or as the direct day-to-day supervisor over Washington MLOs working for a licensed Consumer Loan Company. The Department of Financial Institutions' NMLS checklist identifies these roles among those that must hold the Mortgage Loan Originator license.

No, in most cases. Wisconsin exempts loan processors and underwriters from the mortgage loan originator license, as long as they do not hold themselves out to the public as able to perform loan-originator activities. An underwriter who, for compensation, takes a residential mortgage loan application or offers or negotiates loan terms must be licensed.