Your North Carolina Mortgage Broker License Guide

If you’re considering to launch a mortgage brokerage in North Carolina, it’s essential to get acquainted with the licensing process that you have to go through. 

You need to obtain a NC mortgage broker license from the state Commissioner of Banks. The procedure entails fulfilling a number of requirements, which are set in order to guarantee that you are capable of practicing the mortgage profession. One of the most important criteria that you have to meet is to post a North Carolina mortgage broker bond. 

In the sections below, you can find the licensing requirements and more information on how to get the necessary bonding. 

How to become a mortgage broker in NC

The North Carolina Commissioner of Banks regulates the activities of mortgage brokers in the state. It sets the licensing requirements that you have to satisfy, so that you’re deemed the right to operate. 

The definition of a residential mortgage broker is an individual or a business who:

• Accepts or offers to accept an application for a mortgage loan
• Solicits or offers to solicit a mortgage loan
• Negotiates the terms or conditions of a mortgage loan
• Issues mortgage loan commitments or interest rate guarantee agreements to borrowers

The licensing process is handled via the Nationwide Multistate Licensing System & Registry (NMLS). You need to complete the relevant application form and provide the following:

• Resident / registered agent information
• Evidence of meeting the minimum liquid asset requirement of $10,000
• Information about chosen qualifying individual, including their resume
• For each control person (including the qualifying individual): credit report and FBI criminal background check
• Answers to disclosure questions
• Financial statements
• Business plan
• Secretary of State documents 
• Business entity formation documents
• Organizational chart and ownership chart
• Lease agreement
• Copy of your Anti-Money Laundering Program
• Surety bond ($75,000 for a first license)  

You also need to cover the required fees, which include:

• $1,250 licensing fee
• $100 NMLS processing fee
• $15 credit report fee and $36.25 FBI investigation fee per control person

In addition, if you want to operate from more than one location in North Carolina, you need to complete Form MU3 and meet the requirements for branch locations. 

Obtaining your mortgage broker bond

Posting a surety bond is one of the indispensable requirements for getting your NC mortgage broker license. The bond amounts are the following:

• $75,000 for a first-time application and for yearly loan volume below $10 million
• $125,000 for loan volume between $10 million and $50 million
• $250,000 for loan volume above $50 million

The larger bond amounts are based on your annual loan volume as of December 31st of the respective year. 

The goal of the bonding is to safeguard the interests of your customers and ensure that you will follow the legal framework in the state, namely the North Carolina Secure and Fair Enforcement (S.A.F.E.) Mortgage Licensing Act. If you engage in fraudulent or otherwise illegal activities as a mortgage broker in the state, you can receive a bond claim. 

In order to get bonded, you have to cover a small fraction of the required bond amount. It is typically between 0.5% and 5% for applicants with stable finances. This means that for your initial bond of $75,000, your bond premium may be as low as $375 to $3,750.

Do you have more questions about obtaining your NC mortgage broker license and bond? Don’t hesitate to contact us at 877.514.5146.