How do I start a mortgage brokerage?
You form a company, match your business activities to a license type using NMLS checklists and fee charts, and file the Company Form (MU1) through NMLS, which captures business activities, owners, executive officers, and a Qualifying Individual. Most states also require a surety bond or minimum net worth, a business plan, and criminal background checks and credit reports for each control person. Requirements and bond amounts vary by state, so you must satisfy each state agency's specific checklist.
You register the company on one of California's two tracks. A California Financing Law (CFL) company license costs $300 in state filing fees, requires net worth of $50,000 to $250,000 depending on whether you make residential loans, and a surety bond starting at $25,000 that scales with loan volume; a Residential Mortgage Lending Act (CRMLA) license costs $1,100 at filing and requires $250,000 in net worth and a $50,000 bond. Every loan originator you employ must hold an MLO license and be sponsored in NMLS, and each branch office is filed on an MU3 form.
Sources: Cal. Fin. Code Div. 9 Ch. 1 Art. 3 (22100-22112): CFL licensing statutes; Cal. Fin. Code 50205: CRMLA Surety Bond; California DFPI: Requirements for CFLL and CRMLA Licensed Companies; California DFPI: how to apply for a CRMLA lender/servicer license.
To start a mortgage brokerage, form a legal entity, open a company account in the Nationwide Mortgage Licensing System and Registry (NMLS), and file the company application (Form MU1) with a $425 nonrefundable application fee plus the $100 fee under s. 494.00172 if required. Designate a principal loan originator licensed for at least 1 year or with 1 year of active mortgage-related business experience. Each control person must submit fingerprints for state and FBI checks and authorize an independent credit report. Each branch office needs a separate $225 license.
Sources: Fla. Stat. 494.00321: Mortgage broker license; Fla. Stat. 494.00172: Mortgage Guaranty Trust Fund fee; NMLS: FAQs on S.2155 Temporary Authority to Operate; Fla. Stat. 494.0036: Mortgage broker branch office license.
You register the company with the Department of Financial Services through NMLS, filing the Company Form (MU1) and paying a $1,500 registration fee. The company must first be registered with the New York Department of State and hold a Certificate of Authority, or DFS will withdraw the application. You must have, or employ, a qualifying individual with two years of verifiable credit analysis or underwriting experience, and the qualifier must hold a mortgage loan originator license. After approval, you file a surety bond and attend a conferral meeting.
Sources: NY DFS: Application Fee Schedule.