Housing is a hot market, but in many states, including Minnesota, several factors are making it difficult for some individuals to break into home ownership. These factors include rising home prices, increasingly high demand, reduced inventory, and the ever-rising building costs associated with new home construction. Median home prices are rising fast and are now at a record high for the state. In fact, Zillow predicts a 4.6 percent increase in home values throughout Minnesota.
As a mortgage professional, your skills are even more critical to these homebuyers who are looking for financing that meets their budgetary needs and gives them the best options for purchasing that first home. Here are 5 things you need to know about getting your mortgage licensing in Minnesota.
What Are the Education and Application Requirements?
In order to receive a mortgage broker license in the state of Minnesota, you are going to also need a mortgage loan originator license to do business. For this, you will need to complete 20 hours of Nationwide Mortgage Licensing System (NMLS) approved pre-licensure education courses. These must be completed before you can start your application. Other key aspects that you need for your application include a passing score on both the National and Minnesota SAFE tests; fingerprints for a background check, which includes checking for an FBI criminal history; credit report authorization; and a sponsorship by a licensed mortgage originator company. With all these items in place, you can complete a mortgage broker license application.
Is a Brick and Mortar Necessary?
Depending on the state, they may require that you actually have a brick and mortar location within the state to be licensed. However, Minnesota does not require that type of location. Additionally, they do not have any special location requirements for businesses expanding into the state. You also only need to apply for a branch license if your branch office will be located in the state of Minnesota.
Do You Need Audited Financials?
The requirement for audited financials can vary from state to state. Some prefer them, while others do not request them. It is important to check with your state to determine the requirements, as some states may ask for them if you already complete them as part of your business process. Minnesota does not request them at all, even if you complete them as part of your organization’s procedures.
Bond Amounts and Your Net Worth
Minnesota requires that you have a bond amount of $100,000 in order to receive a license. At the same time, you do not have a net worth requirement, unlike other states that want you to meet a specific net worth level before allowing you to get a mortgage broker’s license.
Do You Need a Qualified Individual?
Many states have put a Qualified Individual requirement in place, meaning that you need to have a specific type of representative in the state. Their duties can vary from state to state. However, the state of Minnesota has no such requirement, meaning that you do not need to add that cost to the licensing process.
We Can Help with Your Mortgage Licensing in Minnesota
If you are already licensed in another state, working with the Mortgage Licensing Group can help you to submit a clean and accurate application that can result in a faster approval in Minnesota.
As you can see, Minnesota has a fairly simple application process and their requirements are fairly straightforward. If you are looking to get your mortgage broker license and need assistance in the process, contact us. We can walk you through the process, giving you the benefit of our experience.
The Mortgage Licensing Group, Inc. is a full-service mortgage licensing firm headquartered in Southern California that is recognized throughout the industry as an experienced and reliable service provider. Established in 2006, our company has been on the forefront of the ever-changing rules and regulations, helping alleviate the often daunting task of meeting the diverse state licensing requirements for our clientele.