Getting a Mortgage Broker License in Georgia: A Step by Step Guide

Published: May 24, 2019
georgia mortgage broker license

 

Mortgage brokers in Georgia have to undergo a licensing procedure with state authorities, similarly to brokers in the rest of the U.S.

If you want to launch your mortgaging business, you will have to meet a range of requirements in order to obtain a Georgia mortgage broker license. They ensure you fit the standards of the state for conducting such professional activities.

One of the main criteria that you have to fulfill is to post a state mortgage broker bond. It functions as a safety net that protects the licensing authorities and your customers in case you engage in fraudulent or illegal actions.

In this guide, you can find details about the licensing and bonding procedure for your Georgia mortgage brokership, so that you can kickstart your business with ease.

Fulfilling the Georgia mortgage broker license requirements

The Georgia Department of Banking and Finance oversees the activities of mortgage professionals in the state. It has set the requirements that you need to meet to be granted a mortgage broker license.

The license allows you to engage in the following activities:

  • First, second and reverse mortgage brokering
  • Foreclosure consulting/foreclosure rescue
  • Home equity lending/lines of credit
  • High-cost home loans  
  • Third party mortgage loan processing  
  • Lead generation  
  • Mortgage loan modifications  
  • Manufactured housing financing

As with other specialists from the financial industry, the licensing procedure for mortgage brokers in Georgia is handled via the Nationwide Mortgage Licensing System (NMLS). You need to submit a completed application and full documentation via its website.

The paperwork that you have to send includes:

  • Completed Company Form (MU1)
  • Formation documents
  • Business plan
  • Organizational and management chart
  • Resident/Registered Agent information
  • Primary contact employees information
  • Disclosure questions
  • Control Person (MU2) attestation
  • FBI and state criminal background check for MU2 individuals
  • $150,000 surety bond

The relevant fees that you have to cover are:

  • $400 license fee
  • $250 application investigation fee
  • $100 NMLS initial processing fee
  • $15 credit report per control person
  • $36.25 FBI criminal background check

You have to renew your license on an annual basis. The renewal period is between  November 1 – December 31.

Obtaining your surety bond

georgia mortgage broker license

As noted in the previous section, providing a Georgia mortgage broker bond is one of the indispensable requirements that you have to satisfy to get your state license. The bond amount is $150,000. The purpose of the bonding is to protect your customers against damages they may suffer in case you transgress from your legal obligations. This number is the maximum compensation that can be obtained on proven bond claims.

In order to get bonded, you don’t need to pay the full amount of $150,000. The bond premium is only a fraction of this amount, which is determined on the basis of your financial situation. The factors that determine it include your personal credit score, company financials, and any fixed or liquid assets that you showcase. Your bond cost is likely to be lower if these indicators are in good shape.

The rates for applicants with good credit are in the range of 1% to 5%. Thus, your bond premium can be as low as $1,500 to $7,500 if your finances are stable.

Have any further queries about the licensing and bonding process for Georgia mortgage brokers? Our bonding experts can help you. You can reach us at 877.514.5146.

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Victor Lance is the founder and president of Lance Surety Bond Associates, Inc. He began his career as an officer in the U.S. Marine Corps, serving two combat tours. As president of Lance Surety, he now focuses on educating and assisting small businesses throughout the country with various license and bond requirements. Victor graduated from Villanova University with a degree in Business Administration and holds a Masters in Business Administration (MBA) from the University of Michigan's Ross School of Business.