How do I become a mortgage broker?

To become a mortgage broker, you register a company in the Nationwide Multistate Licensing System (NMLS) and file the Company Form (MU1) for a state mortgage broker license, designating a qualifying individual who meets your state's experience and fitness standards. Most states require a surety bond, and anyone at the company who takes applications or negotiates terms must hold a personal MLO license, which requires 20 hours of pre-licensing education and a passing score of 75% on the SAFE test. Company licenses renew annually through NMLS between November 1 and December 31.

To become a licensed mortgage broker in Alabama, your company applies under the Mortgage Brokers Licensing Act with a nonrefundable $600 application fee and a financial statement showing $25,000 of tangible net worth, or a surety bond the department accepts in its place. At least one principal or executive officer must show 2 years of mortgage industry experience within the previous 4 years. Any principal who originates loans must also hold an individual MLO license, and broker licenses renew annually by December 1 with a $500 fee.

In Alaska, a mortgage broker is licensed at the company level, not the individual level. You file Form MU1 through NMLS with a $1,000 license fee and a $500 application fee, furnish a $75,000 electronic surety bond, submit an unaudited GAAP financial statement, and maintain an Alaska business license, a registered agent, and a registered office. Individuals who originate or process loans for the company must hold their own Mortgage Loan Originator licenses.

A mortgage broker is licensed by the Arkansas Securities Department under the Fair Mortgage Lending Act. You file Form MU1 (company), Form MU2 (control persons), and Form MU3 (branches) through the Nationwide Multistate Licensing System (NMLS), meet a surety bond requirement of at least $100,000 based on prior-year loan volume, and obtain a separate branch license for each location.

California offers two paths: a real estate broker license from the Department of Real Estate, or a company license from the Department of Financial Protection and Innovation under the California Financing Law or the Residential Mortgage Lending Act. The broker path requires two years of qualifying experience (or a four-year real estate degree) and eight college-level courses. Residential loan work also requires a mortgage loan originator license through the Nationwide Multistate Licensing System (NMLS), with 20 hours of pre-licensing education and a 75% SAFE test score.

To become a mortgage loan originator in Colorado, complete 20 hours of NMLS-approved pre-licensing education and pass the SAFE MLO exam with Uniform State Content. Then submit fingerprints to the Colorado Bureau of Investigation, register with NMLS, and obtain E&O insurance plus a $25,000 surety bond. File Form MU4 in NMLS and complete the Colorado application through the state E-license system, which opens 24 hours after the MU4 filing. An NMLS-registered mortgage company must sponsor you before the license is Active.

To become a mortgage broker in Connecticut, you must obtain a Mortgage Broker License from the Department of Banking. You file the company record (MU1), control person records (MU2), branch records (MU3), and loan originator records (MU4) through NMLS, and pay the applicable fees to the system. The license requires $50,000 in minimum tangible net worth, a surety bond of at least $50,000 filed electronically on NMLS, and a qualified individual with at least 3 years of mortgage business experience within the preceding 5 years who is licensed as a mortgage loan originator.

A mortgage broker in Delaware is a company, not an individual: mortgage loan brokers are licensed under Chapter 21 of Title 5 of the Delaware Code by the State Bank Commissioner, separate from the individual mortgage loan originator (MLO) license. Every individual who originates loans for the broker must still hold an MLO license through the Nationwide Multistate Licensing System (NMLS), regardless of how they are paid.

You file the DC mortgage broker license application through NMLS, pay the fees prescribed by the Commissioner, and submit a surety bond issued by a surety company authorized in DC. DISB investigates the application and must approve or deny it within 60 days after the application, bond, and fees are filed. Once issued, the license must be prominently posted at each place of business.

A Florida mortgage broker license is a company credential, not an individual one. Form a legal entity, open an NMLS company account, and file Form MU1 with the $425 nonrefundable application fee, plus the $100 fee under s. 494.00172 if required. You must designate a principal loan originator who has been licensed as a loan originator for at least 1 year, and each control person must submit fingerprints for state and FBI background checks and authorize a credit report. There is no separate Florida state exam, and branch offices need their own $225 licenses.

To become a mortgage broker in Georgia, you apply for the Mortgage Broker/Processor license through the Nationwide Multistate Licensing System (NMLS) and pay a $650 new-application fee plus NMLS fees. You must maintain a minimum tangible net worth as a continuing condition of licensure and have a Georgia-licensed mortgage loan originator in place before approval, unless the company will act only as a processor. A physical place of business has not been required since January 1, 2021, but an on-site manager must cover locations where you do business with consumers.

An individual working as an originator for their own mortgage broker business must hold two licenses: an individual mortgage loan originator license and a mortgage loan originator company (MLOC) license for the business. You complete 20 hours of pre-licensing education, pass the national and state test components, and file Forms MU1, MU2, and MU4 through NMLS. The company must also maintain a principal place of business in Hawaii and designate a Qualifying Individual who holds a Hawaii MLO license.

In Idaho, a mortgage broker is a company, not an individual, and it must be licensed by the Idaho Department of Finance. The company files through the Nationwide Multistate Licensing System (NMLS) and must demonstrate financial responsibility, character, and fitness under Idaho Code § 26-31-206(2)(a), including unaudited financial statements; start-ups file an initial Statement of Condition or Balance Sheet. Individuals who take applications or negotiate loan terms for the broker must hold their own mortgage loan originator licenses.

To work as a mortgage broker in Illinois, an individual obtains a mortgage loan originator license: complete 20 hours of NMLS-approved pre-license education, pass the SAFE MLO Test, and file the MU4 application with fingerprints and a credit report. You must also be employed by a company that holds an Illinois Residential Mortgage License, and that employer files a sponsorship request through NMLS. With a complete application, the state issues the license in approximately 5-8 business days.

In Indiana, an individual who takes mortgage applications or negotiates loan terms works as a mortgage loan originator (MLO) and needs a license from either the Department of Financial Institutions or the Secretary of State, depending on the sponsoring employer's license. You complete 20 hours of NMLS-approved pre-licensing education, pass the SAFE test with a score of at least 75%, clear FBI background and credit checks, and file the MU4 form in NMLS. Your employer must sponsor you, and you must be a W-2 employee; independent contractors are not eligible.

In Iowa, you need a mortgage broker company license when you arrange or negotiate at least 4 residential mortgage loans in a calendar year secured by owner-occupied property. You apply through NMLS, pay a $500 initial license fee (renewal is $200), and file a surety bond of $100,000 for annual loan volume up to $100 million, or $150,000 above that. Each officer, director, and controlling individual must submit fingerprints, and individuals who take applications or negotiate loan terms must hold their own mortgage loan originator licenses.

To become a mortgage broker in Kansas, you form a company and apply for a mortgage company license from the Office of the State Bank Commissioner through NMLS. You pay a $400 application fee and a $250 initial license fee, file a surety bond between $50,000 and $125,000 depending on your Kansas office and origination volume, and show the agency that you maintain a positive net worth. Each individual who originates loans for the company must separately register as a loan originator.

To become a mortgage loan broker in Kentucky, you submit a company application through NMLS with the Company Form, NMLS Individual Forms for control persons, an audited financial statement, an Electronic Surety Bond of at least $50,000, certified organizational documents, and a Kentucky Secretary of State Certificate of Authority dated within 60 days. The $1,000 license fee covers all licensed locations. You renew by November 30 each year and pay a flat $1,000 annual assessment.

To become a mortgage broker in Louisiana, your company applies for a residential mortgage lending license through the NMLS and pays a $500 application fee. The company must also provide a surety bond, $25,000 for prior-year loan volume below $100,000,000 and $50,000 at or above that level, or deposit an equal amount at a Louisiana federally insured depository institution. The annual renewal fee is $400, and a single license can cover multiple office locations.

To become a mortgage broker in Maine, you need a company-level loan broker license from the Bureau of Consumer Credit Protection, filed through NMLS under 9-A M.R.S. Article 10. The application fee is $300 per license, plus $150 for each branch, and you must post a $25,000 surety bond for each licensed location. No physical Maine office is required, but the company must register as a foreign corporation with the Maine Secretary of State, and a complete application is typically approved within three weeks.

Forming or joining a company that holds the Maryland Mortgage Lender License is the path, because that company-level license covers lending, brokering, and servicing from the principal executive office. As an individual you become a licensed MLO: complete 20 hours of NMLS-approved prelicensing education, pass the SAFE test with at least 75%, file the MU4 in NMLS with fingerprints and a credit report authorization, and obtain employer sponsorship. Since July 1, 2023, locations other than the principal office need no separate license if they are disclosed to the Commissioner.

In Michigan, a company that brokers mortgage loans for others needs a license from the Department of Insurance and Financial Services (DIFS) under the Mortgage Brokers, Lenders, and Servicers Licensing Act, applied for through NMLS. Any individual at the company who originates loans, including officers and shareholders, must also hold an individual mortgage loan originator license. Running your own mortgage company therefore requires the company license in addition to the individual MLO license.

Becoming a mortgage broker in Minnesota means obtaining a Residential Mortgage Originator company license from the Department of Commerce through NMLS. You must register your business with the Minnesota Secretary of State, post a $125,000 surety bond, and document relevant experience. The initial license fee is $1,000, and the license expires December 31 each year.

A mortgage broker license in Mississippi is a company license issued by the Department of Banking and Consumer Finance (DBCF) through NMLS, and the company must have a qualifying individual with at least 2 years of mortgage-related experience. The initial license fee is $2,000, and the initial surety bond is $50,000. The application includes FBI background checks for MU2 individuals, an organizational chart, a business plan, company policies and procedures, and proof of commercial zoning for in-state offices.

You apply to the Missouri Division of Finance for a residential mortgage loan broker license through NMLS. The company pays a $300 application and investigation fee at submission and a $600 annual license fee upon approval, and it must hold a surety bond of at least $50,000. Missouri also requires a full-service, staffed in-state office open to the public, plus background and credit checks on owners, directors, and others who influence company management.

In Montana, you apply for the Mortgage Broker License through NMLS and pay a $500 application fee ($100 if the entity is owned by a Montana-licensed MLO). You must also hold your own MLO license and have 3 years of MLO experience to license your own company, and the entity needs an MLO-licensed designated manager with 3 years of experience. Brokers must carry a surety bond tiered to loan volume ($25,000 up to $50 million in annual production, rising to $100,000 above $100 million); brokers have no net worth requirement, unlike lenders, who must maintain $250,000.

To work as a mortgage broker in Nebraska, you obtain an individual Mortgage Loan Originator license from the Nebraska Department of Banking and Finance. You complete 22 hours of NMLS-approved education, including 2 hours of Nebraska law, pass the SAFE MLO test, file an application with fingerprints and a credit report authorization, and obtain sponsorship from a licensed mortgage banker or installment loan company. If you plan to run your own company, the mortgage banker application fee is $400 plus $75 per branch office.

Becoming a mortgage broker in Nevada means obtaining a mortgage company license from the Nevada Division of Mortgage Lending. The company files through NMLS, pays a $1,200 application fee, posts an electronic surety bond through NMLS, and submits financial statements showing minimum net worth. Each licensed office must have a Qualified Employee, a licensed mortgage loan originator in good standing with verifiable lending experience, at a physical in-state location. To originate loans yourself, you also need an individual MLO license sponsored by the company.

To become a mortgage broker in New Hampshire, your company files Form MU1 through the Nationwide Multistate Licensing System (NMLS) with the New Hampshire Banking Department. The company must maintain $25,000 in positive net worth at all times, post an electronic surety bond through NMLS, and name a Qualifying Individual with at least 3 of the preceding 5 years of supervisory mortgage experience. The filing also requires formation documents, an AML/BSA policy, a Statement of Prior Activity, and a $120 NMLS initial set-up fee.

Mortgage brokering in New Jersey is licensed at the company level. Form or join a business entity, file Form MU1 through NMLS with the $1,200 application fee, obtain a $150,000 surety bond, and designate a Qualified Individual who must meet all mortgage loan originator criteria, including 20 hours of education and the SAFE test. Branch offices file Form MU3 at $1,000 each. A licensed Qualified Individual may originate loans without a separate mortgage loan originator license.

To become a mortgage broker in New Mexico, apply for a mortgage loan originator license through NMLS and obtain a unique identifier. Complete 20 hours of approved education including 3 hours of New Mexico content, pass the national and state test components, provide a credit report, pass a fingerprint background check, and secure a surety bond or sponsorship from a mortgage loan company licensed and bonded in the state.

To become a mortgage broker in New York, a business registers with the Department of Financial Services under Banking Law Article 12-D, filing through NMLS with a $1,500 application fee. The application must designate a qualifying individual with two years of credit analysis or underwriting experience who holds an MLO license, include fingerprints and credit reports for control persons, and be backed by a surety bond of at least $10,000 for a new application. After approval, the registrant attends a conferral meeting, where the registration certificate is issued.

In North Carolina, a mortgage broker is a company-level license issued by the NC Office of the Commissioner of Banks. The company applies through NMLS, pays a $1,250 application fee, and must maintain a surety bond starting at $75,000. The qualifying individual and each branch manager must have at least 3 years of residential mortgage lending experience. If the company has no branch offices, its qualifying individual must also be licensed as a mortgage loan originator.

In North Dakota, you become a mortgage broker by obtaining the money broker company license and filing through NMLS. You register the company, show $25,000 in net worth (a start-up may submit an initial balance sheet), file the $50,000 surety bond electronically, and designate a Qualifying Individual for the state. The state fees are $400 for the initial application and $400 for the annual license, plus $50 per branch location. A licensed MLO who loses sponsorship can also obtain a money broker license and self-sponsor.

In Oklahoma, the mortgage broker license is a company-level license issued by the Department of Consumer Credit through NMLS. The company must designate a licensed mortgage loan originator to oversee operations, and anyone acting as an MLO must hold the individual license. DOCC can issue the company license within 60 days after it receives the complete application and all fees.

In Oregon, mortgage brokering is a company activity: the business needs an Oregon mortgage lender license from the Division of Financial Regulation, applied for through NMLS. A new licensee must provide a $50,000 surety bond, and the amount is recalculated at renewal based on Oregon origination volume, up to $200,000. Each individual who takes loan applications or negotiates terms for the company must hold an Oregon mortgage loan originator license.

To become a mortgage broker in Rhode Island, a company applies for the Loan Broker license through NMLS. The application must name a Qualifying Individual who holds an active Rhode Island MLO license and works as a W-2 employee at the licensed location. The company posts a $20,000 surety bond, uploads financial statements and a Certificate of Good Standing, and provides credit reports for directors, executive officers, the Qualifying Individual, and owners with 10% or more direct ownership. Bank account information is not required for the filing.

To become a mortgage broker in South Carolina, first gain 3 years of experience in financial services, or with a federally insured depository institution or an approved mortgagee; qualifying college coursework can replace one year of that time. Then secure a surety bond of at least $25,000 and submit your application through the Nationwide Multistate Licensing System (NMLS). The Department of Consumer Affairs charges a $550 initial fee plus a one-time $200 processing fee, and each branch location costs $150. The license runs on a calendar year, with renewal from November 1 to December 31.

First obtain a license from the Division of Banking before acting as a mortgage broker in South Dakota. Register and maintain a unique identifier through the Nationwide Multistate Licensing System (NMLS), furnish fingerprints for an FBI criminal history check, and authorize the director to obtain a credit report. You must also maintain a surety bond of at least $25,000, and the initial mortgage broker license fee may not exceed $500. The license expires on the December 31 after it is issued.

Becoming a mortgage broker in Tennessee means getting the Mortgage Loan Originator license issued by the Tennessee Department of Financial Institutions. The steps are: complete 20 hours of NMLS-approved pre-licensing education with 2 hours of Tennessee law, pass the SAFE MLO test, file an MU4 through NMLS with fingerprints and a credit report authorization, and obtain sponsorship from a licensed mortgage company. If you finish all requirements without a sponsor, Tennessee can issue the license as Approved-Inactive until a company sponsors you.

Start by creating an individual NMLS account, then complete 23 hours of NMLS-approved pre-licensing education: the 20-hour SAFE course plus 3 hours of Texas law, finished within the 3 years before you apply. Pass the SAFE MLO test, then file the MU4 through NMLS with the $125 application fee, $20 recovery fee, fingerprints, and a credit report. Finally, a licensed mortgage company must submit a sponsorship request that the Department of Savings and Mortgage Lending approves before you can originate loans.

Create an NMLS individual account, complete 20 hours of NMLS-approved prelicensing education plus Utah-specific prelicensing education from a Utah-approved mortgage school, and pass the SAFE MLO test, which includes the Uniform State Test for Utah. Then file your MU4 through NMLS, authorize the fingerprint background check ($36.25) and credit report ($15), and have your sponsoring mortgage company submit a sponsorship request that the Utah Division of Real Estate accepts or rejects. If you have no employer yet, the DRE can issue an Approved-Inactive license until sponsorship is acquired.

To broker mortgages for compensation in Vermont, you need a mortgage broker company license from the Vermont Department of Financial Regulation (DFR). You apply through the Nationwide Multistate Licensing System (NMLS) using Form MU3 for each location, pay $1,100 ($500 license fee, $500 investigation fee, $100 NMLS processing fee), and post a surety bond of at least $25,000. You must also record a registered agent with the Vermont Secretary of State and submit DFR's required financial statement and broker agreement forms.

In Virginia, mortgage brokering is licensed at the company level under Chapter 16 of Title 6.2, while each individual originator is licensed separately under Chapter 17. The company applies through the Nationwide Multistate Licensing System and Registry (NMLS) and must maintain a surety bond of at least $25,000. Each person who takes applications for, or offers or negotiates terms of, residential mortgage loans needs a mortgage loan originator (MLO) license, which requires 20 hours of pre-licensing education and a passing score on the SAFE test.

To become a Washington mortgage broker, your company applies through the Nationwide Multistate Licensing System (NMLS). First appoint a Designated Broker who passes the Washington Designated Broker Test, which is separate from the mortgage loan originator exam. Then pay the $1,001 licensing fee, obtain a $20,000 electronic surety bond issued through NMLS before filing, and register with the Washington Secretary of State unless you are a sole proprietor. If the company originates mortgages, it must also sponsor licensed mortgage loan originators.

In West Virginia, a mortgage broker company applies through the Nationwide Multistate Licensing System (NMLS) with a $350 license fee plus fingerprint costs and NMLS processing fees. The company must show at least $10,000 of tangible net worth and file a surety bond of $50,000 to $100,000, tiered by annual originations, or $150,000 to participate in table-funded loans. Broker licenses expire December 31, and renewal applications must be filed through NMLS no later than 60 days before expiration.

In Wisconsin, a mortgage broker is a company license, not an individual one. The company applies through NMLS, pays a $750 application fee, and must maintain $100,000 in net worth at all times. A broker submits reviewed financial statements each year, no later than six months after fiscal year end. The license covers assisting borrowers in obtaining loans for compensation without making underwriting decisions or closing loans.

Your company applies to the Wyoming Division of Banking for a Mortgage Lender/Broker license through the Nationwide Multistate Licensing System (NMLS), using form MU1. The application requires financial statements dated within 90 days of fiscal year end, a business plan, formation documents, a Certificate of Good Standing dated within 60 days of filing, management and organizational charts, FBI background checks for control persons, and a surety bond filed electronically through NMLS. The initial surety bond is $25,000, adjusted at each annual renewal based on Wyoming loan volume.