Do you need a license to be a private lender?

Generally yes, if you make residential mortgage loans for consumers. A company that makes residential mortgage loans must hold a state mortgage lender license, applied for through the Nationwide Multistate Licensing System (NMLS), unless it is a depository institution such as a bank or credit union. Requirements vary by state, including minimum net worth, surety bonds, fees, and any exemptions for very small lenders.

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