How do I become a mortgage lender?

A mortgage lender is a company that makes loans directly, unlike a broker, which finds lenders for borrowers but does not lend its own money. You must obtain a state mortgage lender license through the Nationwide Multistate Licensing System (NMLS) for each state where you lend. Requirements vary by state and commonly include minimum net worth, a surety bond, financial statements, and a business plan; California, for example, requires $250,000 in net worth for residential mortgage lenders.

In Alaska, becoming a mortgage lender means obtaining a company Mortgage Broker/Lender license through NMLS. The company pays a $1,000 license fee and a $500 application fee, furnishes a $75,000 electronic surety bond, and submits an unaudited GAAP financial statement, an Alaska business license, and a Certificate of Good Standing. Two control persons are required, and the company must maintain a registered agent and registered office in Alaska. Individual originators who work for the company hold separate MLO licenses.

To become a mortgage lender in Arkansas, your company applies through the NMLS system by filing a Form MU1 (company), Form MU2 (control persons), and Form MU3 (branches), and the Arkansas Securities Department licenses the company under the Fair Mortgage Lending Act. A mortgage banker must maintain a minimum net worth of $25,000 and a surety bond, filed electronically through NMLS since April 30, 2022, of at least $100,000 and up to $200,000 depending on prior-year loan volume. Each branch location requires a separate branch license.

In California, a mortgage lender obtains a company license from the Department of Financial Protection and Innovation under either the California Financing Law or the Residential Mortgage Lending Act (CRMLA), filed through the Nationwide Multistate Licensing System (NMLS). A CRMLA lender must show $250,000 of tangible net worth on audited statements, carry a $50,000 surety bond, and hold approval from an agency such as FHA, VA, Fannie Mae, or Freddie Mac. A California Financing Law lender making residential mortgage loans must maintain $250,000 in net worth plus a surety bond.

In Connecticut, you apply for a mortgage lender license through the Nationwide Multistate Licensing System (NMLS), filing company (MU1), control person (MU2), branch (MU3), and loan originator (MU4) records with the state. The Department of Banking requires minimum tangible net worth of $250,000, plus a qualified individual and each branch manager with at least 3 years of mortgage business experience in the preceding 5 years who is licensed as a mortgage loan originator. You must also file a surety bond of at least $100,000 electronically on NMLS, rising with loan volume.

A mortgage lender license in DC is a company license administered by the Department of Insurance, Securities and Banking (DISB) through NMLS. The company files its application, fees, and surety bond through NMLS, and DISB must approve or deny within 60 days after the application and bond are filed and fees paid. The surety bond must be issued by a company authorized in DC and maintained while the license is in force. The pre-license education and SAFE test requirements apply to individual loan originators, not to the company license.

A mortgage lender license is an entity license under Florida Statutes 494.00611, not an individual credential. The company files through NMLS, pays a $500 nonrefundable application fee plus a $100 fee under section 494.00172, and submits an audited financial report showing net worth of at least $63,000, or $250,000 with a servicing endorsement. The applicant must designate a principal loan originator who holds a Florida loan originator license, and each control person must submit fingerprints and authorize an independent credit report.

A Georgia Mortgage Lender License is obtained through the Nationwide Multistate Licensing System (NMLS) with the Georgia Department of Banking and Finance. The new application fee is $1,150 plus NMLS fees, which the fee rule breaks down as $900 plus a $250 initial investigation fee, and each Georgia branch approval is $330 plus NMLS fees. Brokers that fund loans through warehouse lines are treated as lenders and must carry the required surety bond. Licenses approved between November 1 and December 31 of any year do not need a renewal filing for the next calendar year.

To make or fund residential mortgage loans in Hawaii, you need a Mortgage Loan Originator Company (MLOC) license from the state Division of Financial Institutions. You apply through NMLS with Form MU1, pay a $900 initial application fee for the principal office, and maintain a principal place of business in Hawaii. Your company must also designate a Qualifying Individual on Form MU1 who holds a Hawaii MLO license, and each individual originator you employ must be licensed and sponsored by the company.

In Idaho a mortgage lender is a company license issued by the Idaho Department of Finance through NMLS. The company must demonstrate financial responsibility, character, and fitness under Idaho Code 26-31-206(2)(a), and file unaudited financial statements through NMLS; start-ups file an initial Statement of Condition or Balance Sheet. The Department reviews ratios such as current ratio, liabilities to assets, tangible net worth, net income, and equity depletion. Individuals who originate loans for the lender must hold their own Mortgage Loan Originator License.

A company that makes residential mortgage loans in Illinois needs a Residential Mortgage License from the Illinois Department of Financial and Professional Regulation, filed through the Nationwide Multistate Licensing System (NMLS). The state fee is $2,700 at initial licensure and $2,700 at each annual renewal, plus NMLS processing fees, and the company must maintain an electronic surety bond of at least $25,000 scaled to its loan volume. Individuals who take loan applications or negotiate loan terms instead need the separate mortgage loan originator license.

A mortgage lender is a company, not an individual. To operate as one in Indiana, the company obtains a Mortgage Lending License from the Indiana Department of Financial Institutions (DFI). The application is filed in NMLS and processed by the DFI Consumer Credit Division. Under 750 IAC 9-3-7, each creditor must be covered by a surety bond. Individuals who originate mortgage loans for the licensed company must each hold their own MLO license.

In Iowa, a company that makes or services at least 4 mortgage loans in a calendar year secured by a lien on owner-occupied residential real property needs a mortgage banker license. Apply through the Nationwide Multistate Licensing System (NMLS), with a $500 initial license fee ($400 annual renewal) plus $40 per additional branch location, and a surety bond of $100,000 ($150,000 for volume over $100,000,000). Officers, directors, and controlling individuals must provide fingerprints for an FBI background check.

To become a mortgage lender in Kansas, you apply for a Mortgage Company License through the Nationwide Multistate Licensing System (NMLS); the Office of the State Bank Commissioner (OSBC) issues the license. The new application fee is $400 for each principal place of business, and you must show positive net worth and post a surety bond of $50,000 to $125,000, depending on office location and origination volume. No education course or test is required for the company license, but any individual originating loans for you must hold a Kansas Mortgage Loan Originator license.

To become a mortgage lender in Kentucky, you must obtain a mortgage loan company license from the Department of Financial Institutions through the Nationwide Multistate Licensing System & Registry (NMLS). The application requires the NMLS Company Form, individual forms for control persons, an audited financial statement, certified organizational documents, and a Certificate of Authority from the Kentucky Secretary of State dated within 60 days. You must also post an Electronic Surety Bond of at least $250,000. The license fee is $2,500, and renewals are due on or before November 30 each year.

To become a licensed mortgage lender in Louisiana, your company files its application through the Nationwide Multistate Licensing System (NMLS) with the Office of Financial Institutions. The application fee is $500 and the annual renewal fee is $400. The company must also maintain a surety bond: $25,000 for prior-year total loan volume of $0 to $99,999,999, and $50,000 for volume of $100,000,000 or greater. Multiple office locations can be covered by a single license that lists each address and the licensees at each location.

In Maryland, a mortgage lender license is a company-level license issued by the Office of Financial Regulation through the Nationwide Mortgage Licensing System and Registry (NMLS). You apply through NMLS for your principal executive office, meet the surety bond requirement under Financial Institutions §11-619, and pay the applicable fees. Since July 1, 2023, individual licenses are not issued for locations other than the principal executive office, as long as those locations are disclosed to the Commissioner.

A company becomes a mortgage lender in Michigan by obtaining a first mortgage lender license from the Department of Insurance and Financial Services (DIFS) under the Mortgage Brokers, Lenders, and Servicers Licensing Act of 1987. The company applies through the Nationwide Multistate Licensing System and Registry (NMLS) and files its surety bond through NMLS electronic bond tracking. Any individual at the company who takes loan applications or negotiates terms must also hold a personal MLO license. The company license expires December 31 each year and must be renewed by December 15.

A mortgage lender or broker in Minnesota needs the Residential Mortgage Originator company license from the Department of Commerce, applied for through NMLS. Requirements include registration with the Minnesota Secretary of State, a $125,000 surety bond, and demonstrated experience. The state fee is $1,000 for the initial license and $500 for renewal, and an application left incomplete for six months is considered withdrawn.

A mortgage lender in Mississippi needs a company license from the Mississippi Department of Banking and Consumer Finance, applied for through the Nationwide Multistate Licensing System and Registry (NMLS). The initial license fee is $2,000, and an initial applicant must post a $250,000 surety bond (both effective July 1, 2025). The company must also have a qualifying individual with at least 2 years of experience directly related to mortgage activities.

To become licensed as a residential mortgage loan broker in Missouri, apply through NMLS, pay a $300 one-time application and investigation fee, and pay the $600 annual license fee upon approval. The company must maintain a full-service, staffed Missouri office open to the public and deliver an original surety bond of at least $50,000 to the Division of Finance. No course or test is required at the company level; education and testing requirements attach to the individual mortgage loan originators the company employs.

To become a mortgage loan originator in Nevada, complete 30 hours of NMLS-approved pre-licensing education, pass the SAFE MLO National Test with Uniform State Content with a score of 75% or higher, and file the MU4 through NMLS with a credit, criminal, and background investigation. You must be 18 or older and be employed by, or hold an offer from, a Nevada-licensed mortgage company that sponsors you, because Nevada does not issue the license without valid sponsorship. The Nevada application fee is $75, and NMLS charges its own processing fees on top.

In New Hampshire, mortgage lending licenses go to companies, not individuals, and all new applications are filed through the Nationwide Multistate Licensing System (NMLS). A mortgage broker company, for example, must maintain $25,000 in positive net worth at all times, post an electronic surety bond through NMLS, and employ a Qualifying Individual with mortgage supervisory experience in at least 3 of the preceding 5 years. A sole proprietor licensed as a mortgage broker must also obtain a mortgage loan originator license before engaging in originator activities.

A Residential Mortgage Lender license in New Jersey is issued by the New Jersey Department of Banking and Insurance (DOBI) through the Nationwide Multistate Licensing System (NMLS). The company files Form MU1 with a $1,200 application fee, must carry a $150,000 surety bond, and must have a Qualified Individual who meets the Mortgage Loan Originator criteria and files Form MU4. Each branch location requires Form MU3 and a $1,000 fee.

Making mortgage loans in New York requires a mortgage banker license from the state Department of Financial Services. DFS applies the license to companies that make 3 or more loans in one year or 5 or more over two years on New York residential property. The original license application fee is $3,000, and applications are filed through the Nationwide Multistate Licensing System (NMLS). By contrast, registered mortgage brokers cannot lend directly; they must place loans with licensed mortgage bankers or exempt organizations.

In North Dakota, you apply for a money broker license through the Nationwide Multistate Licensing System (NMLS), which is how mortgage lenders and brokers are licensed in the state. The applicant must show a company net worth of $25,000, file a $50,000 surety bond, and pay a $400 application fee plus a $400 annual license fee. A Qualifying Individual, recommended to have 3 or more years of industry or supervisory experience, must be designated on the application, and no physical presence in the state is required.

In Oklahoma, a mortgage lender is a company license issued by the Oklahoma Department of Consumer Credit through NMLS. The company must name a Qualifying Individual who is licensed as a mortgage loan originator or applying for that license, file a $100,000 surety bond, and show a minimum net worth of $25,000 verified per 59 O.S. § 2095.11.1. DOCC can issue the license within 60 days after receiving a complete application and all fees.

In Oregon, a mortgage lender is a company, and it must hold an Oregon mortgage lender license from the Division of Financial Regulation. The company applies through NMLS and files a surety bond: $50,000 for a new licensee, scaled up to $200,000 based on the company's Oregon origination volume. Each loan originator the company employs must hold an individual MLO license, and the company must sponsor that license through NMLS.

To become a mortgage lender in Pennsylvania, you form a company and apply for the lender license through NMLS, which the Department of Banking and Securities requires for all mortgage businesses. The application includes formation documents, a business plan, internal policies, and a surety bond of $100,000 to $500,000 based on origination volume. The initial fee is $1,500 for the principal place of business plus $1,500 per branch.

To become a licensed mortgage lender in Rhode Island, your company files an application through NMLS with the Department of Business Regulation. You must post a $50,000 surety bond, upload financial statements prepared under generally accepted accounting principles, and provide a Certificate of Good Standing dated within 60 days of filing. Each location also needs a Qualifying Individual who holds an active Rhode Island MLO license, is a W-2 employee, and is physically present at the location most operating hours.

To become a licensed mortgage lender in South Carolina, your company applies through the Nationwide Multistate Licensing System (NMLS) to the State Board of Financial Institutions under the South Carolina Mortgage Lending Act. The filing fee is $1,000, and you must post a surety bond of at least $50,000, rising with loan volume to $150,000. Each branch office requires a separate $150 branch license.

To act as a mortgage lender in South Dakota, you must obtain a lender license from the Division of Banking, because no person may act as a mortgage lender without one (SDCL 54-14-13). The applicant must furnish fingerprints for an FBI criminal history check, authorize a credit report, and maintain a surety bond of at least $25,000 (SDCL 54-14-15 and 54-14-24). The initial lender license fee may not exceed $1,000, and the license expires on the December 31 following its issuance (SDCL 54-14-16 and 54-14-18).

In Tennessee, a mortgage lender license is a company license from the Department of Financial Institutions, not an individual credential. New lender applicants must post a $200,000 surety bond, and renewal bonds range from $100,000 to $300,000 based on prior-year Tennessee loan volume. The company must show at least 3 years of mortgage industry experience within the 5 years before applying, through its designated managing principal, and must file through NMLS. Employees who originate loans hold separate mortgage loan originator licenses.

To lend as a business, you need a company license from the Texas Department of Savings and Mortgage Lending: the Mortgage Company License costs $325 for a new application ($275 renewal) and is filed online through NMLS, which charges a $120 company filing fee. Companies act through originators, so each Residential Mortgage Loan Originator you employ must hold an individual RMLO license and be sponsored by the company in NMLS before originating. If you only want to originate loans yourself, you need the RMLO license rather than a lender license.

In Virginia, a mortgage lender is a company licensed by the State Corporation Commission's Bureau of Financial Institutions under Chapter 16 of Title 6.2. The company applies through NMLS and must file a continuously maintained surety bond of at least $25,000, or a greater amount the Commissioner requires. Each individual originating loans must separately hold a mortgage loan originator license under Chapter 17, which requires 20 hours of pre-licensing education and a passing SAFE test score. A lender's bond can cover its employee originators, so they file no separate bonds.

In Washington, a residential mortgage lender operates under a Consumer Loan Company license from the Department of Financial Institutions (DFI), filed online through NMLS. A new applicant pays a $1,162.21 main office licensing fee, must have a $30,000 electronic surety bond issued through NMLS before filing, and must authorize a credit report and criminal background check for each control person. Companies that broker or lend residential mortgages must also sponsor mortgage loan originators through NMLS.

To become a licensed mortgage lender in West Virginia, your company applies through the Nationwide Multistate Licensing System (NMLS) with a $1,250 license fee plus fingerprint processing costs and NMLS processing fees. The applicant must show tangible net worth of at least $250,000 and file an electronic surety bond, which starts at $100,000 for annual West Virginia originations up to $3 million. Lender licenses expire December 31 each year, and lenders pay $5 for each residential mortgage loan originated.

In Wisconsin, a mortgage lender is licensed as a mortgage banker, a company license issued by the Department of Financial Institutions and filed through NMLS. The company pays a $1,000 application fee, must maintain $250,000 in net worth at all times, and submits audited financial statements annually within six months of fiscal year end. A mortgage banker may originate, sell, and service residential mortgage loans, but must also hold a mortgage broker license before brokering them.