What are the requirements to obtain a mortgage broker license?

A mortgage broker needs both a company credential and licensed individuals. The company files through NMLS on the Company Form (MU1), typically with a business plan, financial statements, and a surety bond in the amount the state requires. Each individual who takes applications or negotiates loan terms must complete at least 20 hours of NMLS-approved education, pass the SAFE MLO Test with 75% or better, and clear FBI fingerprint and credit checks.

Alabama mortgage broker applicants must file a written, sworn application with a $600 nonrefundable fee, plus a financial statement showing $25,000 of tangible net worth (the department may accept a surety bond in an amount it determines instead). At least one principal or executive officer must show 2 years of mortgage industry experience within the previous 4 years, and every principal or executive officer who originates mortgage loans must also hold an MLO license under the Alabama SAFE Act.

Alaska issues one Mortgage Broker/Lender license to companies through the Division of Banking and Securities. Requirements include a $75,000 electronic surety bond, an unaudited financial statement for the preceding fiscal year, two control persons, an Alaska registered agent and office, an Alaska business license, and a Certificate of Authority. The company must also submit an anti-money-laundering policy, a business plan, and organizational and management charts with the MU1 filing.

Arizona requires anyone who takes residential mortgage loan applications or negotiates loan terms to hold a loan originator license issued by the Arizona Department of Insurance and Financial Institutions (DIFI). You must complete 20 hours of NMLS-approved education, including 4 hours of Arizona law, pass the SAFE MLO test with a score of at least 75%, obtain an NMLS unique identifier, and submit fingerprints. Financial responsibility is shown through an employer surety bond of at least $200,000 or a $100 mortgage recovery fund payment.

The Arkansas Securities Department licenses mortgage brokers under the Fair Mortgage Lending Act. The company files Form MU1, plus control-person (MU2) and branch (MU3) records, through the Nationwide Multistate Licensing System (NMLS), and a separate branch license is required for each location. The broker must carry a surety bond of at least $100,000, rising to $150,000 or $200,000 as prior-year loan volume increases.

It depends on the regulator. A DRE broker applicant must be 18 or older, complete eight college-level courses, show two years of full-time salesperson experience within the last five years (or equivalent unlicensed experience or a four-year real estate degree), pass the broker exam, and pass a background check. A California Financing Law broker license instead requires no education or prior experience, but the company must meet net worth requirements and post a surety bond of at least $25,000.

To obtain a Colorado MLO license, you must complete 20 hours of NMLS-approved pre-licensing education (3 hours federal law, 3 hours ethics, 2 hours non-traditional mortgage lending, 2 hours Colorado-specific content, and 10 hours of electives) and pass the SAFE MLO exam with Uniform State Content. You must also submit fingerprints to the Colorado Bureau of Investigation, register with NMLS, and obtain both E&O insurance and a $25,000 surety bond before completing the application in both NMLS and the state E-license system.

A Connecticut mortgage broker company must file through NMLS and maintain at least $50,000 in tangible net worth. It must have a qualified individual at the main office, and any branch manager, with at least 3 years of mortgage business experience within the preceding 5 years and an active mortgage loan originator license. The company files a surety bond of at least $50,000, rising with loan volume, and its officers, partners, or members must hold individual MLO licenses if they meet the statutory MLO definition.

DC law (D.C. Code § 26-1103) prohibits anyone from acting as a mortgage broker without a license. An applicant must file through the Nationwide Multistate Licensing System (NMLS), pay the fees prescribed by the Commissioner, and file a surety bond issued by a surety company authorized in DC that stays in force while the license is active. Licenses are not transferable and must be posted at each place of business.

A Florida mortgage broker license is an entity-level license, separate from the individual loan originator license. The applicant must designate a qualified principal loan originator who has been licensed as a loan originator for at least 1 year or can show at least 1 year of active mortgage-related business experience. The application, filed through NMLS, requires a $425 nonrefundable fee plus the $100 fee under s. 494.00172 if required, and fingerprints and a credit report authorization for each control person.

Georgia requires the Mortgage Broker/Processor License for anyone who solicits, processes, places, or negotiates mortgage loans for others. You apply through the Nationwide Multistate Licensing System (NMLS) and must maintain a minimum tangible net worth as a continuing condition of licensure. A physical place of business has not been required since January 1, 2021, but an on-site manager must cover locations where you do business with consumers. A Georgia-licensed mortgage loan originator must be in place before approval, unless the company will act only as a processor.

A mortgage brokerage in Hawaii operates as a mortgage loan originator company (MLOC) under Chapter 454F. The company must file Form MU1 through the NMLS, maintain a principal place of business in Hawaii, and designate a Qualifying Individual who holds a Hawaii MLO license. Fees include a $900 principal-office application fee, $35 per control person, and a $300 Mortgage Loan Recovery Fund fee. Each originating individual needs an MLO license sponsored by the company.

A mortgage broker license in Idaho is a company license under the Idaho Residential Mortgage Practices Act, issued by the Idaho Department of Finance. The applicant must demonstrate financial responsibility, character, and fitness, and file unaudited financial statements through NMLS; a start-up company files only an initial Statement of Condition or a Balance Sheet. The Department reviews ratios such as current ratio, liabilities to assets, and tangible net worth, and it examines loan and business records periodically.

Illinois licenses individuals in this field as mortgage loan originators. You must be employed by an Illinois residential mortgage licensee, 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. The state application fee is $200, plus a $35 NMLS processing fee.

To obtain an Indiana mortgage loan originator license, complete at least 20 hours of NMLS-approved pre-licensing education, pass the SAFE test with a score of 75% or higher, and clear an FBI criminal background check and credit report filed through the Nationwide Multistate Licensing System (NMLS). You must also reside in a U.S. state or territory and be sponsored as a W-2 employee by an Indiana-licensed mortgage company. Independent contractors paid on a 1099 basis are not eligible for sponsorship.

A mortgage broker license is required to arrange or negotiate at least 4 mortgage loans or commitments secured by owner-occupied Iowa residential property in a calendar year. Applications go to the superintendent through the Nationwide Multistate Licensing System (NMLS), and each officer, director, and person in control must provide fingerprints and authorize an FBI background check. The applicant pays the fee set in Iowa Code 535B.4(10), plus $40 per additional branch location, and files a $100,000 surety bond, or $150,000 if annual residential loan volume exceeds $100,000,000.

Kansas does not issue a separate broker license; brokers hold the same Mortgage Company License as lenders, issued by the Kansas Office of the State Bank Commissioner through the Nationwide Multistate Licensing System (NMLS). The company pays a $400 application fee for its principal place of business, posts a surety bond of $50,000 to $125,000 depending on office location and origination volume, and must maintain a positive net worth. No course or test is required for the company itself; education and testing requirements attach to its individual loan originators.

A Kentucky mortgage loan broker applicant files a Nationwide Multistate Licensing System (NMLS) Company Form, individual forms for control persons, an audited financial statement or startup statement of condition, a surety bond of at least $50,000, certified organizational documents, and a Kentucky Secretary of State Certificate of Authority dated within 60 days. The licensing fee is $1,000, and the broker pays a flat $1,000 annual assessment, with renewal due by November 30.

A Louisiana mortgage broker license is issued by the Office of Financial Institutions through the NMLS, with a $500 application fee and a $400 annual renewal fee. Brokers must furnish a surety bond based on prior-calendar-year loan volume: $25,000 for volume up to $99,999,999, and $50,000 for $100,000,000 or more. An equal deposit at a federally insured Louisiana depository institution can replace the bond. Licenses expire December 31 each year.

Anyone who, for compensation, arranges or obtains an extension of credit for a consumer needs a loan broker license from the Maine Bureau of Consumer Credit Protection. The application is filed through NMLS with a $300 fee per license, and the broker must post a $25,000 surety bond for each licensed location. Maine imposes no net worth requirement and no physical in-state office, but the company must register as a foreign corporation with the Maine Secretary of State. The license runs one year, January 1 through December 31.

In Maryland, mortgage brokering requires the company-level Mortgage Lender License, issued by the Office of Financial Regulation through NMLS for a business engaged in mortgage lending under Financial Institutions Article, Section 11-501 et seq. Individual employees who take applications or negotiate loan terms must each hold an MLO license. Each MLO needs 20 hours of NMLS-approved prelicensing education, a passing SAFE test score of at least 75%, fingerprint and credit checks, and a surety bond, which a sponsoring company's bond can satisfy.

A Michigan mortgage broker (company) license is issued by the Department of Insurance and Financial Services under the Mortgage Brokers, Lenders, and Servicers Licensing Act 173 of 1987. Companies apply through NMLS, submit a surety bond through the NMLS electronic bond function, and file a financial statement disclosure (form FIS 2053). A company license does not authorize an individual to originate loans; each person originating mortgages must also hold an MLO license unless statutorily exempt. The license expires December 31 and must be renewed on or before December 15.

To obtain a mortgage broker license in Minnesota, you apply for the Residential Mortgage Originator company license from the Department of Commerce through NMLS. You must register your business with the Minnesota Secretary of State, file a $125,000 surety bond, and show relevant experience. The initial fee is $1,000 and the annual renewal is $500. Out-of-state companies do not need a Minnesota office but may need to register as a foreign corporation with the Secretary of State.

A Mississippi mortgage broker company license requires a $2,000 initial fee, a $50,000 surety bond, and FBI criminal background checks for MU2 individuals. The application must include an organizational chart, a detailed business plan, company policies and procedures, and proof of commercial zoning for any in-state location. A qualifying individual must be an owner or employee with at least 2 years of experience directly related to mortgage activities.

A residential mortgage loan broker license from the Missouri Division of Finance requires an application through NMLS, a full-service Missouri office open to the public with adequate staff, and a surety bond of at least $50,000 that scales with loan volume up to a statutory maximum of $1,000,000. All directors, owners, partners, and others who influence company management must pass criminal background and credit investigations. The company must also show mortgage broker or lender experience and pay a $300 application fee plus a $600 annual license fee.

A Montana mortgage broker applies through NMLS and pays a $500 application fee, reduced to $100 for a broker entity owned by a Montana-licensed MLO. The broker must designate a mortgage loan originator as designated manager, and that person must have 3 years of MLO experience. Brokers must carry a surety bond of $25,000, $50,000, or $100,000 depending on annual loan volume, but they have no minimum net worth requirement. The main office and every branch must be licensed, and all locations must be within the United States or a territory.

Nebraska regulates mortgage lending companies under the Residential Mortgage Licensing Act through the Nebraska Department of Banking and Finance, using NMLS. A company applying for a mortgage banker license pays a $400 application fee plus $75 for each branch office, and must post a surety bond starting at $100,000 that also covers its mortgage loan originators. The bond scales with closed and serviced loan volume, up to $200,000 for companies over $25 million. Individuals who take applications or negotiate terms for the company need their own Mortgage Loan Originator licenses.

To obtain a Nevada mortgage broker license, the company files through NMLS and pays a $1,200 application fee to the Nevada Division of Mortgage Lending. The company posts an electronic surety bond through NMLS sized to annual loan production, submits financial statements showing minimum net worth, and maintains an Information Security Program. Each licensed office must have a Qualified Employee, a licensed mortgage loan originator with verifiable real-estate lending experience, and offices must be physical in-state locations.

A New Hampshire mortgage broker company files through the Nationwide Multistate Licensing System (NMLS). Requirements include $25,000 in positive net worth maintained at all times, an electronic surety bond, and a Qualifying Individual with at least 3 of the preceding 5 years of supervisory mortgage experience, working full-time at the principal office. The filing also requires an Affirmation Form, Form U-2, a Statement of Prior Activity, an AML/BSA policy, and formation documents. Foreign companies must maintain a registered agent in New Hampshire.

A Residential Mortgage Broker license in New Jersey is a company license issued by the Department of Banking and Insurance. The business must file Form MU1 through the NMLS, pay a $1,200 application fee, obtain a $150,000 surety bond, and designate a Qualified Individual who meets all mortgage loan originator criteria: 20 hours of education including 4 New Jersey hours, the SAFE test, and background checks. Each branch office requires Form MU3 and a $1,000 fee.

New Mexico licenses mortgage brokers as mortgage loan companies under the Mortgage Loan Company Act. Requirements include applying through NMLS, designating a Qualified Individual who holds a New Mexico MLO license in Approved status with 2 years of relevant experience in the preceding 4 years, maintaining an initial $50,000 surety bond, and submitting an unaudited financial statement dated within 90 days of fiscal year end. Each of the application, license, and supervisory fees is $500.

To register as a New York mortgage broker, you file through NMLS and pay a $1,500 application fee under Banking Law section 591-a, plus fingerprints for a criminal background check. You must have, or employ, a qualifying individual with two years of verifiable credit analysis or underwriting experience; New York-licensed attorneys and real estate brokers are exempt from that experience requirement. You must also post a surety bond of $10,000 to $100,000 based on your New York application volume, and DFS reviews the credit of control persons.

A mortgage broker company in North Carolina must be licensed by the North Carolina Office of the Commissioner of Banks unless exempt, and it applies through the Nationwide Multistate Licensing System (NMLS). The company must carry a surety bond starting at $75,000, adjusted each year by loan origination volume, and must certify $10,000 in continuing liquidity. The qualifying individual and each branch manager must have at least 3 years of residential mortgage lending experience.

North Dakota issues the company-side mortgage license as a money broker license, filed through NMLS. Requirements include a company net worth of $25,000 (NDCC 13-04.1-04.2), an electronic surety bond of $50,000 filed in NMLS, and a designated Qualifying Individual, who is recommended to have three or more years of industry or supervisory experience. The application also requires formation documents, a business plan, and a copy of the privacy notice to be used in North Dakota transactions.

Ohio issues one Mortgage Loan Originator License for individuals. You must complete 24 hours of NMLS-approved pre-license education including 4 hours of Ohio law, pass the SAFE test with a score of 75% or better, submit fingerprints for an FBI background check, authorize a credit report, and meet character and financial-responsibility standards. A company licensed by the Division of Financial Institutions must also sponsor your license before you can originate loans.

The Oklahoma Mortgage Broker License is a company-level license under 59 O.S. § 2095.2(13), issued by the Oklahoma Department of Consumer Credit through NMLS. The applicant entity must designate a licensed mortgage loan originator to oversee operations, and officers, owners, directors, or partners who act as MLOs must be licensed MLOs themselves and pass background checks and credit reports. The license is valid for one year beginning January 1 and must be renewed through NMLS before December 1 each year.

To obtain an Oregon mortgage loan originator license, you must complete 20 hours of NMLS-approved pre-licensure education, including 4 hours of Oregon-specific content, and pass the National Test with Uniform State Content. You must also submit Form MU4 through NMLS, pass an FBI background check, and authorize a credit report. Finally, an Oregon-licensed mortgage company must sponsor your license; without sponsorship, the license is issued as inactive and you may not originate loans.

Submit a company application (Form MU1) through NMLS with the Rhode Island Department of Business Regulation. Each location needs a Qualifying Individual who holds an active Rhode Island MLO license, works as a W-2 employee, is present at the location for the majority of operating hours, and lives within a reasonable commuting distance. A loan broker must post a $20,000 surety bond, upload financial statements, and provide a Certificate of Good Standing dated within 60 days of filing.

A South Carolina mortgage broker license is issued by the Department of Consumer Affairs. You must have at least 3 years of experience in financial services, submit the application through NMLS, and pay a $550 initial fee plus a one-time $200 processing fee, along with credit report and FBI background check costs. The brokerage must also post a surety bond of at least $25,000, scaled to $40,000 or $55,000 at higher loan volumes. Licenses expire December 31 and renew between November 1 and December 31.

You need a license from South Dakota's Division of Banking before acting as a mortgage broker, and you must register and maintain a unique identifier through the Nationwide Multistate Licensing System (NMLS). You must furnish fingerprints for an FBI criminal history check and authorize the director to obtain a credit report. You must also submit and maintain a surety bond in an amount reflecting your total loans originated, but not less than $25,000. The initial mortgage broker license fee may not exceed $500.

A Tennessee mortgage loan broker license is a company license. The company applies through NMLS and must show at least 3 years of relevant mortgage industry experience within the 5 years before applying, through its designated managing principal. It must also file a surety bond: $90,000 at first issuance and the following year, then tiered by prior-year Tennessee residential loan volume ($45,000 under $10 million, $90,000 at $10 million to under $50 million, $135,000 at $50 million or more). Individual MLOs must separately meet the education, testing, and background requirements.

Anyone who takes residential mortgage loan applications or negotiates their terms for compensation needs a Texas Residential Mortgage Loan Originator license. Requirements include 23 hours of NMLS-approved pre-licensing education (20 national hours plus 3 hours of Texas law), a passing SAFE MLO test score, an FBI fingerprint check, a credit review, and U.S. citizenship or lawful alien status. A felony conviction in the preceding 7 years, or one involving fraud or dishonesty, bars licensure. A licensed mortgage company must sponsor you before you may originate.

In Utah, brokering closed-end residential first mortgages requires a mortgage loan originator license from the Division of Real Estate. You must show honesty, integrity, truthfulness, competency, and financial responsibility; obtain an NMLS unique identifier; complete 20 hours of national prelicensing education plus the Utah-specific education required by the division within the 12 months before applying; pass the national exam with the Uniform State Test; and submit fingerprints, a credit report authorization, and a social security verification form.

Vermont requires a mortgage broker license for any company or person that, for compensation or gain, negotiates, places, assists in placing, or finds mortgage loans (other than commercial loans) on Vermont real property for others. The company must post a surety bond of at least $25,000, with the required amount rising as Vermont origination volume grows, and record a registered agent with the Vermont Secretary of State. Each location needs a separate license filed through NMLS, and authorized individuals must be W-2 employees whose MLO licenses are sponsored in NMLS.

A mortgage broker license in Virginia is a company license under Chapter 16 of state law. The company files Form MU1 and its control persons file Form MU2 through the Nationwide Multistate Licensing System and Registry (NMLS), and the company must maintain a surety bond of at least $25,000, an amount the Commissioner may raise based on loan volume. The application fee is not refundable, and unlike lenders, a broker-only company does not have to show a minimum level of funds available for the business.

A Washington Mortgage Broker license is a company credential issued by the Department of Financial Institutions through NMLS. Requirements include appointing a Designated Broker with two years of mortgage-related experience who has passed the Designated Broker Test, a $20,000 electronic surety bond issued through NMLS before filing, Washington Secretary of State registration (unless a sole proprietorship), a Washington Business License, and trust-account compliance under RCW 19.146.050 and WAC 208-660-410.

A West Virginia mortgage broker license requires a $350 license fee, plus fingerprint processing costs and any Nationwide Mortgage Licensing System (NMLS) processing fees. The applicant must show tangible net worth of at least $10,000 and file an electronic surety bond through NMLS: $50,000 for annual originations up to $3 million, $75,000 above $3 million up to $10 million, and $100,000 above $10 million. Brokers participating in table-funded loans must file a $150,000 bond, and every broker pays $5 per residential mortgage loan brokered each year.

A Wisconsin Mortgage Broker License goes to the company, not the individual. The business pays a $750 application fee, must maintain at least $100,000 in net worth at all times, and submits reviewed financial statements annually, no later than six months after fiscal year end. The broker must employ at least one Wisconsin-licensed mortgage loan originator, and a mortgage banker must also hold a broker license before brokering Wisconsin residential loans.

Wyoming licenses mortgage brokers through the Division of Banking, and applications are filed through the Nationwide Multistate Licensing System (NMLS). Company requirements include financial statements, a business plan, FBI background checks for control persons, a Certificate of Good Standing dated within 60 days of filing, formation documents, management and organizational charts, and a surety bond. The initial surety bond is $25,000, and at each annual renewal it is adjusted to $25,000, $50,000, or $100,000 based on the prior year's Wyoming loan volume.