Mortgage Broker Licensing Facts

mortgage broker licensing

Mortgage brokers are individuals that act as associates for licensed mortgage brokerage companies or other lenders that happen to be qualified under a particular state’s statutes. A mortgage broker licensing qualification helps mortgage brokers as it gives them authorization to solicit loans (mortgage) on behalf of borrowers and to also accept applications as well as to negotiate mortgage loans in the name of lenders.


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State Test
To apply for mortgage broker licensing a mortgage broker must fulfill certain conditions including passing a state’s test as well as submitting certain forms and being above the age of eighteen. There are a number of schools that provide mortgage broker licensing courses that aim mainly to impart complete knowledge regarding mortgage lending fundamentals in a simple and concise manner. There are a number of subjects that must be studied and passed when taking mortgage broker training including subjects such as basic provisions related to mortgages, state as well as federal laws, mathematics, secondary mortgage markets as well as the entire loan cycle that begins when an application is filed and which culminates after proper servicing has been provided.

To apply for mortgage broker licensing requires planning ahead since it is not permissible to make or even broker mortgage loans without already having a license or being qualified for exemption from mortgage broker licensing requirements. An exemption from mortgage broker licensing means that you don’t need to comply with the licensing requirements, though in effect it also means that you will be regulated in some other way. Banks, and subsidiaries of banks as well as attorneys are generally the ones that get exemption from mortgage broker licensing and the same is the case with real estate brokers as well as sellers that deal in property business that involves back seller financing.

Some states also provide exemption from mortgage broker licensing to lenders that are already approved with the US Department of Housing and Urban Development. An independent mortgage broker is often employed to advice people and to help them obtain information regarding benefits as well as conditions related to mortgages which should then help these people understand what it takes to make a commitment for a long term (such as twenty-five years) that is time required to repay their mortgage loan.

In case you want to run a mortgage business you will need to then get mortgage broker licensing and the best course of action for you then would be to apply for the license at least three months prior to when you plan on starting your mortgage brokerage business to ensure that you get your license well before commencing your business.

Gina Wilson

Another post from Gina Wilson – Credit & Loans Specialist Blogger.

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