The Full Iowa Mortgage Broker License Guide

Category: Uncategorized
Published: Oct 28, 2020
Iowa mortgage broker license


Anyone in Iowa who makes or negotiates more than four mortgage loans in a calendar year is required to obtain a mortgage license.

Mortgage broker and mortgage banker licenses in the state are regulated by the Iowa Division of Banking (IDOB). The license application process itself is conducted through the Nationwide Mortgage Licensing System (NMLS) though.

Do you want to apply for an Iowa mortgage broker license? Here’s what you need to do!

Mortgage License Types in Iowa

There are two different types of mortgage licenses for companies in Iowa. These are:

  • Mortgage Banker License
  • Mortgage Broker License

To obtain any of these two licenses, you need to fulfill several licensing requirements. These requirements are the same for both licenses.

Meet The Iowa Mortgage Broker License Requirements

Before you can submit your license application through NMLS, you must meet the following licensing requirements:

Business Documents

Your first is to form a business entity with the Iowa Secretary of State. You will not be able to operate a mortgage broker company without creating a business entity.

You will need to submit the following business documents when applying for a license:

  • Financial statements
  • Certificate of other trade name (if applicable)
  • Formation documents
  • Certificate of good standing / Certificate of authority

You can also see the full list of the required documents in the official mortgage application checklists for both licenses.

Provide a Surety Bond

Applicants for both the mortgage broker and the mortgage banker license need to submit an Iowa mortgage broker bond as part of their license application.

Upon initially applying for your license, the bond must be in an amount of $100,000. Later, when renewing your license, you will need to post $100,000 if you’ve made loans up to $100,000,000, and a $150,000 bond for loans upward of $100,000,000.

To get bonded, you must pay a rate that is equal to a small fraction of the total bond amount.

This rate, or bond premium, is determined by the surety on the basis of several different financial factors. These include your personal credit score, financial statements, assets, and more.

Applicants who have good finances will typically get bonded at a rate between 0.5% and 5% of the total amount of their bond.

Do you want to know how much it would cost to get bonded? Complete the brief bond form below and we will provide you with a free quote!

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Criminal Background Check

When completing your online application, you will need to authorize an FBI criminal background check. People who must pass a background check include direct owners, indirect owners, as well as all executive officers of the company.

Complete the Iowa Mortgage Broker License Application

To complete your mortgage broker application, and attach all of the above documents, you need to register in NMLS.

The application form includes Company form MU1 and Individual form MU2. You will need to provide basic information about the company and all applicants in the forms, as well as your registered agent(s).

License and Registration Fees

The licensing costs for mortgage brokers and bankers in Iowa include:

  • $100 NMLS initial processing fee
  • $400 Iowa mortgage license application fee
  • $36.25 per authorized criminal background check

You will be notified once your application has been reviewed and your license has been issued.

Renewing Your Iowa Mortgage Broker License

Licenses expire yearly on December 31. You must make sure to submit your license renewal application and documents by December 1. The renewal fee for mortgage brokers is $200, and $400 for mortgage bankers.

If you are late with your renewal application, you will need to pay an additional late renewal fee of $10 for each day in which you are late.

Is there anything else you want to know regarding the licensing and bonding process for Iowa mortgage brokers? Call us at 877.514.5146 to speak to one of our surety professionals!

 

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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.