mortgage broker licensing

Mortgage Broker Licensing Requirements for New York

ByNick Graham

In New York, mortgage broker licensing is required for anyone who wants to originate residential loans in NY.

Getting a Mortgage License

What type of license will you need? The National Mortgage Licensing System (NMLS) is the best place to start to research which license you may need for your company. This site holds information and provides a median/platform for the states and licensees to communicate. It offers a wealth of information to help you through the process.

The state of New York offers mortgage broker licenses & registration, depending on your needs. Common options include:

  • Mortgage Banker License – allows companies to issue commitments and advance funds for mortgage loans.
  • Mortgage Broker Registration – allows companies to accept, solicit, process, and negotiate mortgage loans with lenders on behalf of third parties.
  • Mortgage Loan Servicer Registration – allows companies to receive and make payments from borrowers.

Refer to the NMLS’ New York State Licensing Requirements for a complete list.

The NMLS Procedure

Once you decide which license to pursue, you’ll have to fill out the necessary paperwork with NMLS. This requires you to fill out the application form found on the NMLS website. Additionally, many forms must be pulled directly from the NY state website. You will have to fill out a form for each control person as well.

Submit a complete application in the NMLS and ship the required hard copies to NY, along with the relevant fees. This will include an initial processing fee, a New York application fee, and credit report fees for each control person.

The Surety Bond Requirement

To get a mortgage broker license, you will need to post a surety bond based on the license/registration issued. Bond amounts vary from $10,000 to $100,000 based on the volume of business you handle within a year.

The bonding criterion aims to ensure compliance within New York state. It guarantees you’ll follow New York rules and regulations, which protect any customers you service within the state.

To get bonded, you’ll be required to post a small percentage of the required bond amount as a yearly bond premium. Good credit and stable finances will ensure the lowest rates available.

Licensing Fees

Licensing is paid directly through NMLS and is non-refundable. At the broker level, you’ll pay investigation, processing, credit report, and fingerprint fees. Individual licenses will also be required to pay the above fees, as well as an exam fee and an FBI background check fee.

Application Processing

Once an application is deemed complete, it will be published in New York’s Department of Financial Services’ weekly bulletins.

An incomplete application will receive a written notice of the matters that must be addressed and a 30-day time period in which to fix the problem and file the appropriate documentation.

Once approved, the applicant will have to submit the required surety bond for complete registration. The applicant will also attend a conferral meeting and receive the registration certificate to complete the process.

If denied, the applicant will receive notice of denial.

Getting Step-By-Step Help

Getting a mortgage broker license in New York is a process. With the proper research and tools, you’ll reach your destination with success.

For many along this journey, helpful guidance provides just the right amount of hand-holding to ensure the outcome. Contact us today for more information or to speak to a representative about specific questions for New York requirements.