How do I start a mortgage brokerage company?

California has two company paths: a California Financing Law (CFL) or Residential Mortgage Lending Act (CRMLA) license from the Department of Financial Protection and Innovation, or a broker license from the Department of Real Estate. You file the Company Form (MU1) through the Nationwide Multistate Licensing System (NMLS): $300 in CFL fees, $1,100 for CRMLA. A residential CFL lender needs $250,000 in net worth plus a surety bond; a CRMLA lender needs $250,000 in audited net worth and a $50,000 bond. Employees who originate loans need their own mortgage loan originator license.

Starting a mortgage brokerage company in Florida means obtaining the entity-level mortgage broker license under Chapter 494, filed through the Nationwide Mortgage Licensing System and Registry (NMLS). The application carries a $425 nonrefundable fee plus the $100 fee under s. 494.00172 if required. You must designate a principal loan originator with at least 1 year as a licensed loan originator or in active mortgage-related business. Fingerprints and credit report authorization are required for each control person, including executive officers and 10%-or-greater owners.

You form the company, then apply through NMLS with the Company Form (MU1), a business plan, internal compliance policies, formation documents, an ownership chart, and a New York certificate of good standing. Each licensed location needs a commercial lease of at least six months, and no more than five trade names are permitted. You pay a $1,500 registration fee and designate a qualifying individual with two years of credit analysis or underwriting experience. DFS issues the registration certificate at a conferral meeting after approval.