Processor Licensing States
All states now require Contract Processors and Underwriters to be licensed.
Also, Kentucky requires w-2 Processors to be licensed too.
Exempt Company Registrations – Some states have this option. 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.
Mortgage Broker Company License – Some states 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.
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).
Example of Licenses Held by Nationwide Contract Processing Firm. May not be accurate list.
STATE LICENSE TYPE
Alabama Mortgage Brokers License
Arizona Mortgage Broker License
Arkansas Mortgage Broker License
California BRE – Real Estate Corporation License Endorsement
Colorado Mortgage Company Registration
District of Columbia Mortgage Broker License
Florida Mortgage Broker License
Georgia Mortgage Lender License
Illinois Residential Mortgage License
Iowa Mortgage Broker License
Kansas Mortgage Company License
Louisiana Residential Mortgage Lending License
Maryland Mortgage Lender License
Minnesota Residential Mortgage Originator License
Mississippi Mortgage Broker License
Montana Mortgage Broker License
Nebraska Mortgage Banker License
New Hampshire Mortgage Broker License
New Jersey Residential Mortgage Broker License
New Mexico Mortgage Loan Company License
Oklahoma Mortgage Broker License
Oregon Mortgage Lending License
South Carolina DCA – Mortgage Broker License
Tennessee Mortgage License
Texas SML – Mortgage Company License
Washington Mortgage Broker License
West Virginia Mortgage Broker License
Wisconsin Mortgage Broker License
STATE LICENSE TYPE
Connecticut Exempt Registration
Idaho Exempt Entity Registration
Indiana * None
Kentucky Exempt Company Registration
Maine * None
Massachusetts Exempt Company Registration
Michigan Exempt Company Registration
Nevada Exempt Company Registration
North Carolina Exempt Company Registration
North Dakota Exempt Company Registration
Pennsylvania Partially Exempt Mortgage Company Registration
South Dakota Exempt Mortgage Company Registration
Virginia Exempt Company Registration
Wyoming Exempt Company Registration
* Authorized to conduct business per IN DFI & SOS regulators. No licence or exempt registration available to hold as a 3rd party mortgage service provider.
* Authorized to conduct business per ME regulator. No license or exempt registration available to hold as a 3rd party mortgage services provider.