The Full Maryland Mortgage Broker License Guide [2020]

Published: Apr 6, 2020
maryland mortgage broker license

 

Do you want to launch a mortgage business in Maryland? In order to start your new endeavor, you have to obtain a Maryland mortgage broker license. 

Mortgage professionals have to meet the requirements set by the Maryland Commissioner of Financial Regulation, which is the state authority. The Nationwide Multistate Licensing System and Registry (NMLS) handles the licensing procedure. 

To get started, you can become familiar with the criteria for obtaining a license in the guide below. 

Choose a Mortgage License Type

Mortgage brokers in Maryland can obtain the following license types:

  • Mortgage Lender License (company) – engaging in the mortgage lending business as a lender, servicer, or broker
  • Mortgage Loan Originator License (individual) – taking a loan application or offering or negotiating the terms of a mortgage loan

You can find the full list of license types on the NMLS website.

Meet the Maryland Mortgage Broker License Requirements

The licensing requirements for Maryland mortgage lenders are rigorous. You can get acquainted with them in the following sections.  

Business Documents 

If applying as a company, you have to register your business entity in the state via the Maryland Business Express portal. 

Besides providing your formation documents, you also have to attach the following to your application:

  • Trade name (if applicable) 
  • Business plan
  • Organizational chart
  • Registered Agent information

For individual license applicants, the requirement is to answer the disclosure questions. 

Provide a Surety Bond 

Mortgage companies in Maryland have to obtain a surety bond. The Maryland mortgage broker bond requirement is necessary only for mortgage lender license applicants.

The bond amount that you have to post depends on your volume of mortgage business in the last 12 months:

  • Under $3 million – $50,000
  • Between $3 million and $10 million – $100,000
  • Over $10 million – $150,000

The bond cost that you have to pay is a fraction of the required amount. It depends on your personal and business finances. The stronger they are, the lower your price would be. If your profile is solid, you can get rates between 0.5% and 5%.

Want to check the exact price of your mortgage broker bond? Fill in the short form below! 

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Criminal Background Check

Passing the FBI criminal background check is necessary for all license types. 

Credit Report and Financial Statements

You have to provide credit report authorization as a part of the licensing process. 

Applicants for a mortgage lender license also have to showcase their financial statements. If you will be lending money secured by a dwelling or residential real estate, you also have to meet the minimum net worth requirements. They are between $25,000 and $25,000, depending on your aggregate lending in the last 12 months. 

Education and State Exams 

If you are applying for a mortgage loan originator license, you have to complete 20 hours of NMLS approved pre-licensure education. It should include 3 hours of Maryland mortgage-related law and 2 hours of Maryland finder’s fee law. 

Complete the Maryland Mortgage Broker License Application

maryland mortgage broker licenseOnce you have collected all the necessary paperwork, you can apply online via the NMLS website. 

Some of the documents have to be mailed to the state Commissioner:

Maryland Commissioner of Financial Regulation 

Attn: Licensing Unit 

500 N Calvert Street, Suite 402 

Baltimore, Maryland 21202

License and Registration Fees

The licensing fees that you have to cover are:

  • Mortgage Lender License – $1,000 initial licensing fee, $1 investigation fee, $100 NMLS processing fee
  • Mortgage Loan Originator License -$225 initial licensing fee, $1 investigation fee, $30 NMLS processing fee

The credit report fee is $15 per control person, and the FBI criminal background check fee is $36.25.

 

Have more questions about obtaining your Maryland mortgage license and bonding? Don’t hesitate to get in touch with us at tel:877.514.5146.

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John Williams

John Williams

John Williams is currently the Director of Sales for Lance Surety. Since joining the company in 2011, he has served in various roles throughout the organization, working his way up to now managing our team of licensed agents. As a licensed property & casualty agent, John has become extremely knowledgeable in all facets of the surety industry, including commercial, court and contract bonds. Under his leadership, John’s team has helped thousands of businesses throughout the country meet their license and bonding requirements.