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Florida Mortgage Lender License: 5 Things to Know

Florida Mortgage Lender License

The mortgage industry is booming, especially in South Florida.

In 2015, South Florida experienced a loan volume up 70% from the previous year!

With the mortgage industry back on track, now is the perfect time to get into the mortgage lending business! First, you’re going to need a license and each state has its own mortgage license requirements.

Here are 5 things you need to know about getting a Florida Mortgage Lender License.

Who Needs a Florida Mortgage Lender License?

Entities looking to sell or offer a mortgage loan for money or gain, whether directly or indirectly, need the license. Making a mortgage loan is closing a mortgage loan in a customer’s name and, if applicable, offering or committing to advance funds for the loan.

Who Doesn’t Need a Mortgage Lender License?

Entities who don’t need to have this license  include those who:

  • Are trustees given court authority
  • Sell their own fixed property and receive money for the purchase
  • Only service loans as a federal, state, or municipal agent
  • Make non-residential mortgage loans and only sell to institutions

Individuals who make a mortgage loan or sell a mortgage may not require a license. This person must have attained the mortgage through their own funding and not be affiliated publicly with a mortgage lending business.

You Need to Fill Out an MU1 Form

To apply for a Florida Mortgage Lender License, you must submit an MU1 form through NMLS. A control person, such as a principal loan originator, must be listed on the MU1 form and needs to fill out an additional MU2 form.

There is a required application and guarantee fund fee of $500 and $100 respectively. You also need to pay the $100 NMLS processing fee.

If you ever run into difficulties with the law, you’ll need to include this documentation.

You need to submit an audited financial statement for the most recent year that aligns with U.S. accepted accounting principles. The statement must show a net worth of at least $63,000. If applicable, a statement by the parent corporation will work.

You Will Need a Reliable Control Person

The Control person you list on your MU1 must be reliable and well credited.

You should pay the $38.75 fee for the control person to undergo an FBI and Criminal Background Check. This check will involve live fingerprint scanning. If there were prior criminal legal issues, your control will need to include documentation regarding these incidents.

You should also pay the $15 fee for the control person to check their credit report. The control should have good credit and be able to provide documentation for any issues or areas of concern.

After all proper forms, documentation, and fees are submitted, the Florida Office of Regulation will review it. Pending approval, you may or may not be granted a Florida Mortgage Lender License.

Making an Amendment

Amendments to the MU1 may be required by NMLS. Some of these changes may be updated in the appropriate MU1 section, while others may require an Advance Change Notice with documentation.

Advance Change Notice revisions are needed when:

  • The company’s legal name and/or status is changed
  • The company’s main address is relocated
  • The company starts using other trade names
  • If you want to amend the Control Affiliate
  • If you want to identify an affiliate or subsidiary
  • If the percentage of ownership needs to be changed
  • If the indirect owner’s record needs to be amended
  • If you need to change the affiliated industry type or states

Now that you know what some of the requirements for your Mortgage Lender License, is it time for you to get into the mortgage business in Florida? If you have any further questions concerning mortgages and Florida’s or any other states requirements, feel free to contact us.