How do I become an independent mortgage broker?

You form a company, designate a qualifying individual, and file the Company (MU1) form through the Nationwide Multistate Licensing System (NMLS) in each state where you plan to broker loans. Each state sets its own bond, net worth, and experience rules: Washington requires a $20,000 surety bond, New York a $10,000 bond, and California $50,000 in net worth for residential broker-only companies. You and your originators must also hold individual state loan originator licenses, which require 20 hours of approved education and a passing score of at least 75% on the SAFE test.

To operate as an independent broker in Alabama, you need a mortgage broker license under the Mortgage Brokers Licensing Act (Code of Ala. Title 5, Chapter 25). The application requires a nonrefundable $600 fee, verifiable tangible net worth of $25,000 (or a surety bond in its place), and at least one principal or executive officer with 2 years of mortgage industry experience within the previous 4 years. If you will originate loans yourself, you must also hold an individual MLO license under the Alabama SAFE Act.

An independent (sole-proprietor) mortgage broker in California operates on one of two tracks. On the DRE track, you first need a real estate broker license, which requires two years of qualifying experience and eight college-level courses, then an MLO endorsement filed on both the Company (MU1) and Individual (MU4) forms through NMLS. On the DFPI track, a sole proprietor must hold a company license (CFL or CRMLA) and file Forms MU1, MU2, and MU4.

In Colorado, running your own brokerage requires two credentials. First, you obtain the individual mortgage loan originator (MLO) license: 20 hours of education, the SAFE exam, background checks, errors and omissions insurance, and a surety bond. Second, you register your business as a mortgage company on NMLS, and the company must be in good standing with the Colorado Secretary of State and not legally barred from operating in Colorado.

In Connecticut you obtain a Mortgage Broker license, a company license issued by the Department of Banking through NMLS. The company needs $50,000 in tangible net worth, a surety bond of at least $50,000, and a qualified individual with at least 3 years of mortgage business experience within the preceding 5 years who holds a mortgage loan originator license. As the sponsoring company, the broker covers its sponsored originators through its single surety bond.

To operate independently, you obtain a DC mortgage broker company license, which is processed through NMLS. Company applicants pay fees through the system and file a surety bond; no pre-license course or exam applies at the company level. Individuals who originate loans for the brokerage still need their own DC mortgage loan originator licenses, including education, testing, and sponsorship.

You have two options. As an individual, you can act as an independent contractor for a mortgage broker or lender, though Florida prohibits a loan originator from contracting with more than one at a time. To run your own brokerage, you form a company, file the MU1 through NMLS, and designate a principal loan originator with at least 1 year of licensure or mortgage-related experience; the entity pays a $425 application fee plus a $100 trust fund fee.

To operate independently, you need a Mortgage Broker/Processor company license from the Georgia Department of Banking and Finance, filed through the Nationwide Multistate Licensing System (NMLS), because a mortgage loan originator license alone does not permit independent origination. Georgia MLOs must be exclusive W-2 employees of a single licensed broker or lender. The company license requires a $650 application fee plus NMLS fees and a minimum tangible net worth as a continuing condition of licensure.

An independent company in Illinois needs a Residential Mortgage License from the Illinois Department of Financial and Professional Regulation (IDFPR), with a $2,700 initial state fee and an electronic surety bond of at least $25,000, scaled to loan volume. A sole operator must also be a licensed mortgage loan originator (MLO): IDFPR requires independent loan processors to employ licensed MLOs, and a sole loan processor must hold the license personally.

In Indiana you cannot operate as an independent mortgage loan originator. State rules require the MLO to be a W-2 employee of a sponsoring company, and independent contractors and people compensated by 1099 are not eligible for sponsorship. To operate your own company, you would need a company license, such as the DFI Mortgage Lending License or the Secretary of State Loan Broker License, filed through NMLS.

In Kansas, an independent mortgage broker needs a Mortgage Company License from the Office of the State Bank Commissioner, applied for through the Nationwide Multistate Licensing System & Registry (NMLS). The application fee is $400 for the principal place of business, and the company must maintain a surety bond of $50,000 to $125,000, depending on whether it keeps a Kansas office and its prior-year volume. The company license requires no education course or test, but you must also register as a loan originator to originate loans, which requires 20 hours of pre-licensing education.

In Kentucky, you apply for a mortgage loan broker license through NMLS by submitting a Company Form, Individual Forms for control persons, an audited financial statement or startup statement of condition, a $50,000 surety bond, certified organizational documents, and a Kentucky Secretary of State Certificate of Authority dated within 60 days. The license fee is $1,000, and anyone originating loans must also register as a mortgage loan originator. Renew by November 30; the annual assessment is a flat $1,000.

File a company-level application through NMLS with the Louisiana Office of Financial Institutions. The application fee is $500, and the annual renewal fee is $400. You must provide a surety bond based on prior-year loan volume ($25,000 below $100,000,000 in volume, $50,000 at or above it), and list each office location on the license with the names and license numbers of the individual originators working there.

Massachusetts does not allow independent-contractor origination: all licensed mortgage loan originators must be W2 employees, and an MLO may work for no more than one entity. To operate your own company, you can obtain a mortgage broker company license from the Division of Banks, which requires 3 years of full-time experience (or the part-time equivalent) with a licensed broker, lender, or exempt financial institution. As of October 2026, the broker company license fee is $600 and requires a $75,000 surety bond.

To operate your own mortgage brokerage in Michigan, you need a company license from the Department of Insurance and Financial Services (DIFS) under the Mortgage Brokers, Lenders, and Servicers Licensing Act, applied for through the Nationwide Multistate Licensing System (NMLS). An individual Mortgage Loan Originator License alone does not allow this, because originators must be sponsored by a licensed company. You would also need your own Mortgage Loan Originator License, since a company license does not authorize an individual to originate loans.

To operate independently, you need the Residential Mortgage Originator company license under Minnesota Chapter 58 rather than an individual MLO license. You must register the business with the Minnesota Secretary of State, apply through the Nationwide Multistate Licensing System (NMLS), pay the $1,000 initial license fee, file a $125,000 surety bond, and demonstrate experience. The surety bond amount increases with annual Minnesota loan volume above $10,000,000.

To run your own brokerage, you apply for a Mississippi mortgage broker company license through NMLS: the initial fee is $2,000, a $50,000 surety bond is required, and the company needs a qualifying individual with at least 2 years of mortgage experience. Separately, since July 1, 2025, a mortgage loan originator may work as an independent contractor, provided the originator is an exclusive agent of a Mississippi-licensed company.

In Missouri, you obtain a residential mortgage loan broker license from the Division of Finance, which requires a $300 application fee, a $600 annual license fee, and a surety bond of at least $50,000. You must maintain a full-service, staffed Missouri office open to the public, show mortgage broker or lender experience, and pass criminal and credit checks on all principals. If you interact with consumers in processing mortgage applications, you must also hold an individual mortgage loan originator license.

You cannot originate independently in Nebraska. State law requires every mortgage loan originator to be an employee or independent agent of a single Nebraska licensed mortgage banker, registrant, or installment loan company. To operate your own company, you file a mortgage banker application through NMLS with a $400 fee plus $75 per branch office and a surety bond of at least $100,000 that covers your originators. If your business address is your home, the residence must be licensed as a branch location.

Nevada does not license independent mortgage loan originators. An MLO must be employed by, or hold an offer from, a licensed mortgage company or certificate-of-exemption holder, and may associate with only one licensed office at a time. To operate independently, you need your own mortgage company license, which requires a $1,200 application fee, an electronic surety bond through NMLS, financial statements, and a Qualified Employee at each office who is a licensed MLO with verifiable lending experience.

Independent mortgage broker companies in New Hampshire are licensed through the Nationwide Multistate Licensing System (NMLS) by the New Hampshire Banking Department. The company must maintain $25,000 in positive net worth at all times, obtain an electronic surety bond through NMLS, and employ a Qualifying Individual with at least 3 of the preceding 5 years of supervisory mortgage experience. A sole proprietor licensed as a mortgage broker must also hold a mortgage loan originator license before conducting originator activity.

Form a business entity and obtain a New Jersey Residential Mortgage Broker license by filing Form MU1 through NMLS, paying the $1,200 application fee, and securing a $150,000 surety bond that scales up with closed loan volume. You must also hold the Qualified Individual license ($500 application fee), which requires meeting all MLO criteria: 20 hours of education including 4 New Jersey hours, passing the SAFE Test, background checks, and a credit report authorization.

In New Mexico, an independent contractor who originates loans without sponsorship from a licensed mortgage loan company must obtain a license under the Mortgage Loan Company Act. The application goes through NMLS, with a $500 application fee, an initial $50,000 surety bond, and a Qualified Individual who holds a New Mexico MLO license and has 2 years of relevant experience within the preceding 4 years. An unsponsored originator must also carry an individual surety bond starting at $50,000.

New York requires anyone who solicits, processes, places, or negotiates mortgage loans for others, even a single loan, to register with the Department of Financial Services as a mortgage broker. You apply through NMLS, pay a $1,500 registration fee, and file a $10,000 surety bond for a new registration. You must also have, or employ, a qualifying individual with two years of verifiable credit analysis or underwriting experience, and that qualifier must hold a mortgage loan originator license. The registration certificate is issued at a DFS conferral meeting after approval.

North Carolina offers an Exclusive Mortgage Broker license for individuals who broker exclusively for a single licensed mortgage broker or lender, applied for through the Nationwide Multistate Licensing System and Registry (NMLS). It requires a surety bond starting at $75,000, and you must also apply for an NC mortgage loan originator license to personally engage in origination activities. A sole proprietor licensed as a mortgage broker likewise needs an MLO license to originate loans personally.

First obtain the individual Mortgage Loan Originator license, then apply for the Oklahoma Mortgage Broker company license through NMLS with the Oklahoma Department of Consumer Credit. The broker must designate a licensed MLO to oversee operations and is responsible for making sure every loan originator it employs is licensed. The company license is valid for one year beginning January 1 and must be renewed through NMLS before December 1 each year.

Operating independently in Oregon requires a company mortgage license from the Division of Financial Regulation, applied for through the Nationwide Multistate Licensing System and Registry (NMLS), plus a surety bond of at least $50,000 that scales with your Oregon origination volume. An individual loan originator cannot operate alone: Oregon requires sponsorship by a licensed mortgage company, and ORS 86A.178(2) prohibits a loan originator from working for more than one mortgage banker or broker at the same time.

If you want to originate loans independently for a single mortgage broker in South Carolina, you hold the Qualified Loan Originator license. It costs $100 annually, requires a $25,000 individual surety bond, the same 20 hours of education and testing as other loan originators, and a written supervision contract with a licensed broker. It restricts you to fixed-rate, fixed-term, fully amortizing loans for a single lender. Opening your own brokerage instead requires the mortgage broker license and 3 years of financial services experience.

To operate independently, you need the company-level mortgage loan broker license from the Tennessee Department of Financial Institutions, filed through the Nationwide Mortgage Licensing System & Registry (NMLS). The company must show at least 3 years of mortgage industry experience within the 5 years before applying, through a designated managing principal, and file a surety bond ranging from $45,000 to $135,000 based on Tennessee loan volume ($90,000 in the first renewal year). If you also originate loans yourself, you need an individual mortgage loan originator license.

A Texas RMLO license alone does not let you operate on your own; licensed originators must act on behalf of a sponsoring entity that holds a company license, though a sole proprietorship can be separately licensed or registered. To run your own brokerage, you need a company-level license filed through NMLS. The Texas Department of Savings and Mortgage Lending charges a $325 new-application fee and $275 renewal fee for a Mortgage Company license, and the company must sponsor its originators and hold the required surety bond.

In Utah, you register a mortgage entity on an MU1 form through NMLS, naming a Principal Lending Manager as the qualifying individual, and register branch offices on MU3 forms. The lending manager license requires the 20-hour national course, the MLO exam, a 40-hour Utah-specific lending manager course completed within the 12 months before applying, a state lending manager exam, and documented experience, such as 3 years originating first-lien residential mortgages with at least 45 loans. Submit the application within 90 days of passing both exam portions.

In Vermont, an independent originator needs the individual mortgage broker license from the Department of Financial Regulation, filed through NMLS. The initial application costs $1,100.00 ($500 license fee, $500 investigation fee, and $100 NMLS processing fee), though statute sets reduced fees of $250 plus $250 for an individual sole proprietor broker. The applicant must post a minimum $25,000 surety bond, record a registered agent with the Secretary of State, and hold an MLO license to originate.

You need your own company license under Chapter 16 of Title 6.2 plus your individual mortgage loan originator license. You file the company application through the Nationwide Multistate Licensing System (NMLS), post a surety bond of at least $25,000, and meet the state's financial responsibility standards. Once licensed, your company bond can cover the mortgage loan originator employees and exclusive agents who work for you.

In Washington, an independent mortgage broker needs the company-level Mortgage Broker License from the Department of Financial Institutions, filed online through NMLS. Requirements include a designated broker who passed the Washington Designated Broker Test with two years of documented mortgage experience, a $20,000 electronic surety bond, and the $1,001 application fee. If you originate loans, you also need an individual mortgage loan originator license, sponsored by the company through NMLS.

In West Virginia, a mortgage broker license covers the company, not just an individual. You apply through the Nationwide Multistate Licensing System and Registry (NMLS), pay a $350 license fee plus fingerprint and NMLS processing costs, show tangible net worth of at least $10,000, and post a surety bond of at least $50,000 for up to $3 million in annual West Virginia originations.

To operate independently, you need the Wisconsin Mortgage Broker License, a company credential filed through NMLS with a $750 application fee. The company must maintain $100,000 in minimum net worth at all times and submit reviewed financial statements annually. If you will personally take applications or negotiate loan terms, you also need your own mortgage loan originator license, and every branch must have a licensed loan originator assigned and working out of it. The company's main office may not be located in a residence.