Processor Licensing States
All states now require Contract Processors and Underwriters to be licensed.
Also, Kentucky requires w-2 Processors to be licensed too.
The following 26 states have Exempt Company Registrations that only cost $100 to file per state. You would still need to license an MLO, which would cost about $300 to $600 per state, and require completion of education and testing for the MLO. Many of the states would require you to obtain a surety bond from an insurance company to file with the state that would cost between $200 to $1,000 per state. My service fee would be half of my normal service fee per state. My normal service fee per state is $450 to $795 depending on the number of states.
CA, CT, HI, IA, ID, IL, IN, KY, MA, MD, MI, MN, MT, NC, ND, NH, NV, OR, PA, RI, SD, TN, VA, WA, WV, WY
The following 24 states and DC do not have Exempt Company Registrations, however, I recommend making contact with these states to see if they have an option for an Exemption Company Registration that can be filed outside of the NMLS somehow. If that option is not available, then you would have to actually obtain a Mortgage Broker License in these states. The costs for the mortgage broker licensing is on average between $1,500 and $2,500 per state, including the Foreign Entity Fee, License Fee, and Surety Bond Fee. You would still need to license an MLO, which would cost about $300 to $600 per state, and require completion of education and testing for the MLO. My service fee would be my normal service fee per state, which is $450 to $795 depending on the number of states.
AK, AL, AR, AZ, CO, DC, DE, FL, GA, KS, LA, ME, MO, MS, NE, NJ, NM, NY, OH, OK, SC, TX, UT, VT, WI
New York has an Exempt Company Registration, but it can’t be used for Contract Processor Companies.
HUD Safe Act Final Rule
http://portal.hud.gov/hudportal/documents/huddoc?id=SAFERULE.pdf – See the last page Appendix C. Also see Page 38472, 38486, and 38494 for additional details.
Excerpt from HUD SAFE Act Final Rule – Processor Company needing one Licensed LO
Processor does not need an LO License if the processor:
Performs only clerical or support duties as an employee of a mortgage lender or mortgage brokerage firm, and who performs those duties at the direction of and subject to the supervision and instruction of an individual who is employed by the same employer and who is licensed in accordance with § 3400.103(a) (State licensing of loan originators).