What are the requirements to become a mortgage broker?

An individual originating loans at a brokerage needs a state mortgage loan originator license: at least 20 hours of NMLS-approved pre-licensing education (3 hours federal law, 3 hours ethics, 2 hours nontraditional products), a score of 75% or better on the SAFE MLO Test, FBI fingerprint and credit checks, and sponsorship by a licensed company. Running the brokerage itself requires a company license with a surety bond, and most states require a qualifying individual with one to three years of relevant experience.

An Alabama mortgage broker is any person or entity that directly or indirectly solicits, processes, places, or negotiates mortgage loans for a borrower. The applicant must file a written application under oath with a $600 nonrefundable fee, a financial statement showing $25,000 of tangible net worth (a surety bond may substitute at a department-set amount), and evidence that at least one principal or executive officer has 2 years of mortgage industry experience within the previous 4 years. Each principal who originates loans must also hold an MLO license under the Alabama SAFE Act.

A mortgage broker in Alaska is an intermediary who brings borrowers and lenders together but does not use its own funds to originate loans. The company needs the Alaska Mortgage Broker/Lender license from the Division of Banking and Securities, which requires a $500 application fee, a $1,000 license fee, a $75,000 electronic surety bond, an unaudited financial statement, two control persons, an Alaska registered agent and office, and an Alaska business license. Foreign nationals must also submit criminal background checks from every country they have lived in.

You must complete at least 20 hours of NMLS-approved pre-licensing education during the 3 years before applying, covering 3 hours of federal law, 3 hours of ethics, 2 hours of nontraditional mortgage products, 4 hours of Arizona law, and 8 hours of other required topics. You must also pass the SAFE MLO test with at least 75%, obtain an NMLS unique identifier, submit fingerprints for a background investigation, and demonstrate financial responsibility. The state must act on a completed application within 120 days.

Most individuals become mortgage brokers through a DRE real estate broker license: be at least 18, complete eight college-level courses, document two years of full-time salesperson experience in the last five years, and pass the broker exam. To originate residential mortgage loans, you then add the MLO endorsement with 20 hours of NMLS education, the SAFE test, fingerprints, and a credit report. A company can instead obtain a California Financing Law broker license, which requires no education or experience but imposes net worth and surety bond requirements.

In Colorado, individuals are licensed as mortgage loan originators (MLOs); a mortgage broker who owns a company completes a separate mortgage company registration on NMLS. The individual license requires 20 hours of NMLS-approved education including 2 hours of Colorado-specific content, a passing score on the SAFE MLO exam with Uniform State Content, fingerprints submitted to the Colorado Bureau of Investigation, E&O insurance, and a $25,000 surety bond, plus sponsorship from an NMLS-registered mortgage company.

Becoming a mortgage broker in Connecticut means obtaining the company license the Department of Banking issues under Sections 36a-485 to 36a-498h of the Connecticut General Statutes. The requirements are at least $50,000 in tangible net worth, a qualified individual (and any branch managers) with at least 3 years of mortgage business experience in the preceding 5 years who holds an MLO license, and a surety bond of at least $50,000 that scales with loan volume. Officers, partners, or members who meet the MLO definition must also hold individual MLO licenses.

If you will broker loans as an individual, DC requires the mortgage loan originator (MLO) license rather than a company-level broker license. You must complete 20 hours of NMLS-approved pre-licensing education (including 3 hours of DC law), pass the SAFE MLO test with a score of 75% or better, submit fingerprints with written consent to a criminal background check, provide an independent credit report, and hold a sponsorship from a DC-licensed mortgage lender or broker.

To hold a Florida mortgage broker license, an entity must file through the Nationwide Mortgage Licensing System (NMLS), designate a principal loan originator who has been licensed as a loan originator for at least 1 year or has at least 1 year of active mortgage business experience, and pay a $425 nonrefundable application fee plus a $100 trust fund fee. Fingerprints and credit report authorizations are required for each control person. The license renews annually by December 31.

A Georgia mortgage broker needs the Mortgage Broker/Processor License to solicit, process, place, or negotiate mortgage loans for others, filed through the Nationwide Multistate Licensing System (NMLS). Georgia law requires a minimum tangible net worth as a continuing condition of licensure, and an on-site manager must cover any location where the company does business with consumers. A Georgia-licensed mortgage loan originator must be in place before approval, unless the company will act only as a processor.

To broker residential mortgage loans in Hawaii, the business needs an MLOC license and each originating individual needs an MLO license. The individual must complete 20 hours of NMLS-approved pre-licensing education, pass the national and Hawaii test components, submit fingerprints for federal and state background checks, and authorize a credit report. The company must maintain a Hawaii principal place of business and a licensed Qualifying Individual, and every MLO must be sponsored by one company.

In Idaho, a mortgage broker is a company licensed by the Idaho Department of Finance under the Idaho Residential Mortgage Practices Act. The company must demonstrate financial responsibility, character, and fitness, and file unaudited financial statements through NMLS. Individuals who originate loans for the company hold their own Mortgage Loan Originator License, which requires 20 hours of pre-licensure education including 2 hours of Idaho law, the SAFE test, background and credit checks, and sponsorship by the employing company.

Illinois requires individuals who take residential mortgage loan applications or negotiate loan terms for compensation to hold a mortgage loan originator license. You must be employed by an Illinois residential mortgage licensee (no more than one at a time), complete 20 hours of NMLS-approved pre-license education, pass the SAFE MLO Test with Uniform State Content, and file an MU4 application with fingerprints and a credit report.

Indiana requires 20 hours of NMLS-approved pre-licensing education, a passing score of 75% on the SAFE test, an FBI criminal background check, and a credit report, all filed through the Nationwide Multistate Licensing System (NMLS) on Form MU4. You must reside in a U.S. state or territory, and your employer must sponsor you as a W-2 employee. If you finish everything before finding an employer, the license is issued in an Approved-Inactive status until sponsorship is acquired.

Kansas does not require an education course or a test for the mortgage company (broker) license itself; those requirements attach to individual loan originators. A mortgage broker must obtain a license from the Office of the State Bank Commissioner through NMLS, pay a $400 application fee and a $250 initial license fee, file a surety bond, and maintain a positive net worth shown on a balance sheet or financial statement. The company must also file an annual Mortgage Call Report with the Kansas supplemental form.

Kentucky requires a mortgage loan broker to hold a license from the Department of Financial Institutions. The application, filed through NMLS, must include the NMLS 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, plus the fees in KRS 286.8-034.

To obtain a Louisiana mortgage broker license, apply through the NMLS with the Louisiana Office of Financial Institutions. The application fee is $500, and you must furnish a surety bond or an equal deposit of $25,000 for prior-year loan volume up to $99,999,999, or $50,000 for $100,000,000 or more. Brokers renew annually by December 31 with a $400 renewal fee. Multiple office locations can be covered by a single license by listing each office address.

To become a mortgage broker in Maine, you need a loan broker license from the Bureau of Consumer Credit Protection, filed through NMLS, for anyone who arranges or obtains credit extensions for consumers for compensation. Requirements include a $25,000 surety bond for each licensed location, demonstrated financial responsibility, and registration as a foreign corporation with the Maine Secretary of State. No physical Maine office or net worth minimum is required. The license period is one year, January 1 through December 31.

A mortgage broker needs the company-level Mortgage Lender License in Maryland, applied for through NMLS with the Office of Financial Regulation; it covers lender, broker, and servicer activity run from the principal executive office. The individuals who originate loans must be licensed MLOs: 20 hours of NMLS-approved prelicensing education, a SAFE test score of at least 75%, FBI fingerprints, a credit report, and employer sponsorship. Even employees of exempt nonprofit organizations who take applications or negotiate loan terms must be licensed.

Individuals who want to broker mortgages in Massachusetts work as licensed mortgage loan originators. You must complete 20 hours of NMLS-approved pre-license education, including 3 hours of Massachusetts law, pass the SAFE MLO test with a score of at least 75%, and file an MU4 application through NMLS with a credit report and FBI background check. Massachusetts requires all licensed loan originators to be W-2 employees, and your employer's surety bond can satisfy the bonding requirement.

To originate mortgage loans in Michigan, you must complete at least 20 hours of NMLS-approved pre-licensure education, including 2 hours of Michigan content, and pass the SAFE MLO test with a score of 75% or better. You must also submit fingerprints for an FBI criminal history check, authorize a credit report, and file a surety bond (form FIS 2135 for an individual, or form FIS 2137 from your sponsoring company). Your employer must submit a sponsorship request through NMLS, which DIFS reviews before you can originate loans.

To become a mortgage broker in Minnesota, you need a Residential Mortgage Originator company license from the Minnesota Department of Commerce, filed through NMLS. Prerequisites include proper business registration with the Minnesota Secretary of State, a $125,000 surety bond, and relevant experience. An incomplete application is considered withdrawn if not completed within 6 months, and deficiencies must be cured within 30 days of a deficiency notice.

A mortgage broker company applies through the Nationwide Multistate Licensing System and Registry (NMLS) with a $2,000 initial fee and a $50,000 surety bond. The application package requires FBI criminal background checks for MU2 individuals, an organizational chart, a detailed business plan, compliance and operations policies, and proof of commercial zoning for in-state offices. A qualifying individual must be an owner or employee with at least 2 years of mortgage experience.

To broker residential mortgage loans in Missouri, you need a residential mortgage loan broker license from the Division of Finance, applied for through NMLS. Requirements include a full-service Missouri office open to the public, mortgage industry experience, a surety bond of at least $50,000, and criminal background and credit checks on everyone who influences company management. Owners who interact with consumers in processing mortgage applications must also be licensed as MLOs, which requires 20 hours of prelicensing education and a SAFE test score of at least 75%.

To work as a mortgage broker in Nebraska, you need a Mortgage Loan Originator license from the Nebraska Department of Banking and Finance. You must complete 22 hours of prelicensing education approved by the Nationwide Multistate Licensing System (NMLS), including 2 hours of Nebraska law, pass the SAFE MLO test, submit fingerprints and a credit report authorization, and be sponsored by a licensed mortgage banker or installment loan company before the license can be approved.

A Nevada mortgage broker operates under a company license from the Nevada Division of Mortgage Lending, filed through NMLS. The applicant pays a $1,200 state application fee, posts an electronic surety bond through NMLS scaled to annual loan production, and submits financial statements showing minimum net worth. Every licensed office must have a Qualified Employee, a licensed MLO with verifiable lending experience, present at the office most public hours, and offices must be physical in-state locations.

To hold a Residential Mortgage Broker license, a business entity must create an NMLS record, file Form MU1, and pay the $1,200 application fee. It must carry a $150,000 surety bond, which increases with closed loan volume, up to $300,000 at $100,000,001 or more. The entity also needs a Qualified Individual, an officer, director, partner, owner, or principal who meets every mortgage loan originator licensing criterion, and branch locations file Form MU3.

New Mexico requires mortgage brokers to hold a mortgage loan originator license. You must apply 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 have a surety bond or be sponsored by a mortgage loan company licensed and bonded in New Mexico.

New York requires anyone who solicits, processes, places, or negotiates mortgage loans for others to register with the Department of Financial Services under Banking Law Article 12-D. The applicant files through NMLS, posts a surety bond of $10,000 to $100,000 based on loan volume, and designates a qualifying individual with two years of credit analysis or underwriting experience; attorneys and real estate brokers are exempt from that rule. The qualifier must also hold an MLO license, and brokers place loans with licensed mortgage bankers or exempt organizations rather than lending directly.

To broker loans as an individual, you need a mortgage loan originator (MLO) license from the North Carolina Office of the Commissioner of Banks. You must be at least 18, complete 24 hours of approved prelicensing education, pass the SAFE test, clear credit and background checks, and be sponsored as a W-2 employee by a company licensed in the state. A sole proprietorship licensed as a mortgage broker must also hold the MLO license to personally originate loans.

To become a mortgage broker in North Dakota, you apply for the money broker company license through NMLS. You must show a $25,000 company net worth, file a $50,000 electronic surety bond in NMLS, and designate a Qualifying Individual, who is recommended to have at least three years of industry or supervisory experience. Personal financial statements dated within 30 days are required for anyone who directly or indirectly owns 25% or more of the applicant.

Becoming a mortgage broker in Ohio means obtaining the state's single Mortgage Loan Originator License, since the former separate broker licenses were consolidated in 2018. The requirements are 24 hours of NMLS-approved education including 4 hours of Ohio law, a passing SAFE test score, an FBI background check, a credit report, and sponsorship from a company licensed by the Division of Financial Institutions. You must also meet the state's character and financial-responsibility standards.

To become a mortgage broker in Oklahoma, you obtain the company-level Mortgage Broker License from the Oklahoma Department of Consumer Credit through NMLS. The company must designate a licensed mortgage loan originator to oversee operations, and any officers, owners, directors, or partners who act as loan originators must hold MLO licenses and pass background checks and credit reports. Criminal offenses may be a basis for denial, and the license renews annually through NMLS before December 1.

In Oregon, mortgage brokers employ loan originators who must hold individual mortgage loan originator licenses. As an individual, you must complete 20 hours of NMLS-approved pre-licensure education including 4 hours of Oregon content, pass the National Test with Uniform State Content, pass an FBI background check and credit review, and file Form MU4 through NMLS. Your employer must request sponsorship in NMLS before you may originate loans, and the company must provide a surety bond between $50,000 and $200,000 based on its Oregon origination volume.

Pennsylvania broker applicants file a company MU1 form through NMLS and must name a qualifying individual: a management-level officer at the principal place of business who holds a mortgage originator license or meets its requirements, including 20 hours of pre-licensing education with 3 hours of Pennsylvania law and a passed SAFE test. The company also needs a surety bond sized to origination volume, background checks, a tax certification, a business plan, and formation documents.

A Rhode Island loan broker company must appoint a Qualifying Individual who holds an active Rhode Island MLO license, works as a W-2 employee, is present at the licensed location for the majority of operating hours, and lives within a reasonable commuting distance. The company must post a $20,000 surety bond through NMLS, upload financial statements, and provide a Certificate of Good Standing dated within 60 days before filing. Credit reports are required for directors, executive officers, the Qualifying Individual, and owners with 10% or more direct ownership.

To become a licensed mortgage broker in South Carolina, you need at least 3 years of experience in financial services, or 3 years with a federally insured depository institution or an approved mortgagee; qualifying college coursework can substitute for one year. You must also post a company surety bond of at least $25,000 and apply through the Nationwide Multistate Licensing System (NMLS). The Department of Consumer Affairs charges a $550 initial fee plus a one-time $200 processing fee.

To act as a mortgage broker in Tennessee, an individual needs a Mortgage Loan Originator license from the Tennessee Department of Financial Institutions. You must complete 20 hours of NMLS-approved pre-licensing education, including 2 hours of Tennessee law, pass the SAFE MLO test, and file an MU4 application through NMLS with fingerprints for an FBI criminal history check and a credit report authorization. The company-level mortgage lender or loan broker license is a separate, employer-level requirement that carries its own surety bond.

To become a mortgage broker in Texas, you first need the individual Residential Mortgage Loan Originator license from the Department of Savings and Mortgage Lending. Create an NMLS account, complete 23 hours of NMLS-approved pre-licensing education including 3 hours of Texas law, pass the SAFE MLO test, and file the MU4 with fingerprint and credit checks. A licensed mortgage company must then sponsor you in NMLS, and the Department must approve the sponsorship before you can originate. Independent contractor processors and underwriters need the same license.

In Utah, brokering and retail origination of closed-end residential first mortgages is regulated by the Utah Division of Real Estate (DRE). You must complete 20 hours of NMLS-approved prelicensing education plus Utah-specific prelicensing education from a Utah-approved school, completed within the 12 months before you apply. You must also pass the SAFE MLO test, which includes the Uniform State Test, and file an MU4 application through NMLS with fingerprints, a credit report authorization, and a sponsoring mortgage company's sponsorship request.

To act as a mortgage loan originator in Virginia, you must complete at least 20 hours of NMLS-approved pre-licensing education and pass the SAFE MLO test. The state commission will not issue a license if you have had an MLO license revoked in any jurisdiction, or if you were convicted of a felony in the past 7 years (or at any time, if the felony involved fraud, dishonesty, breach of trust, or money laundering). You must also meet financial responsibility standards, register with a unique NMLS identifier, and be covered by a surety bond.

A mortgage broker in Washington is a company license issued by the Department of Financial Institutions (DFI) through the Nationwide Multistate Licensing System (NMLS). Requirements include appointing a Designated Broker who has passed the Washington Designated Broker Test and documented mortgage-related experience, paying the $1,001 application fee, filing a $20,000 electronic surety bond through NMLS, and holding a Washington business license. Each control person must also authorize a credit report and criminal background check.

To become a mortgage broker in Wisconsin, the business obtains a company-level Mortgage Broker License: a $750 application fee, at least $100,000 in minimum net worth maintained at all times, and reviewed financial statements filed annually within six months of fiscal year end. The broker must employ at least one Wisconsin-licensed mortgage loan originator, and each branch office needs its own license at $350. Applications and renewals are filed through NMLS.