Your Complete New York Mortgage Broker License Guide [2020 Update]

Published: Mar 17, 2020
new york mortgage broker license

 

Mortgage professionals in the state of New York have to undergo a licensing procedure prior to starting their business.

In order to obtain your New York mortgage broker license, you have to meet a strict set of criteria set by state authorities. This ensures that you are a suitable professional who can offer services on mortgage loans for customers.

The New York State Department of Financial Services is the authority that oversees the activities of mortgage brokers and other financial professionals in the state. It sets the licensing criteria that you have to satisfy to get a license. 

The licensing procedure for mortgage companies in New York, however, is conducted via the Nationwide Mortgage Licensing System and Registry (NMLS). You need to submit your application and supporting paperwork through its website.

You can find out the details about the licensing procedure and requirements in the current guide. It can help you to launch your mortgage broker business with ease.

Choose a Mortgage License Type

There are different mortgage licenses and registrations that you can obtain in the state of New York:

  • Mortgage Broker Registration (company) – soliciting, processing, or negotiating mortgage loans for others
  • Mortgage Banker License (company) – advancing funds or issuing commitments to make mortgage loans
  • Mortgage Loan Servicer Registration (company) – receiving scheduled periodic payments from a borrower pursuant to the terms of a mortgage loan
  • Mortgage Loan Originator License (individual) – working with loan applications and negotiating loan terms 

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

Meet the New York Mortgage Broker License Requirements

The state Department has set specific criteria that each type of applicant has to satisfy. They are described below. 

Business Documents 

If you are applying for a New York mortgage broker, banker or loan servicer license (company licenses), you have to obtain a business registration from the NY Department of State. You need to showcase the formation documents with your application. Sole proprietors don’t need this registration. 

In addition, you need to provide the following documents:

  • Trade name (if applicable) 
  • Business plan
  • Organizational chart
  • Management chart
  • Resident/Registered Agent information
  • Primary contact employees information
  • Company staffing and internal policies
  • Disclosure questions
  • Control Person (MU2) attestation

Individuals applying for a NY mortgage loan originator license are exempt from most of these requirements, which are for companies. However, they do need to answer the disclosure questions.  

Provide a Surety Bond 

One of the main requirements that all applicants have to fulfill is to obtain a New York mortgage broker bond. It serves as a safety mechanism that guarantees your legal compliance. Thus, it protects the state and the general public.  

The bond amount differ, depending on the license type that you are applying for:

  • Mortgage Broker Registration – $10,000
  • Mortgage Banker License – $50,000
  • Mortgage Loan Servicer Registration – $250,000
  • Mortgage Loan Originator License – between $10,000 and $100,000, depending on the volume of NY loans originated in the last year

Your surety bond cost is set as a percentage of the required amount. It depends on the strength of your finances. The factors that matter include your personal credit score, company finances, and any fixed and liquid assets. The stronger your profile is, the lower the bond cost is likely to be. Applicants with stable profiles typically get premiums between 0.5% and 5% of the required bond amount.

Do you want to check the exact cost of your New York mortgage broker bond? Fill in the short form below! 

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Workers compensation insurance

All company applicants have to obtain workers compensation insurance when hiring employees. 

Criminal Background Check

Control persons for companies have to pass a FBI criminal background check. Individuals applying for a loan originator license need it as well, together with a state background check

Financial Statements

Company applicants have to authorize credit reports for all control persons. They are also necessary for individual applicants. 

Mortgage bankers and loan servicers have to provide a corporate financial statement. All company applicants also need to obtain personal financial statements for key personnel.  

Education and State Exams 

Mortgage loan originators have to complete at least 20 hours of NMLS-approved pre-licensure education courses. Then you have to successfully complete the state test.  

Complete the New York Mortgage Broker License Application

new york mortgage broker licenseWhen you have compiled all necessary documents, you can submit your application online via the NMLS website. 

You may have to mail some documents directly to the Department as well:

New York State Department of Financial Services 

Application Processing Unit 

One State Street 

New York, NY 10004

License and Registration Fees

The required licensing fees are as follows:

  • Mortgage Broker Registration – $1,500 application investigation fee, $100 NMLS initial processing fee 
  • Mortgage Banker License and Mortgage Loan Servicer Registration– $3,000 application investigation fee, $100 NMLS initial processing fee
  • Mortgage Loan Originator License – $379 application fee, $30 NMLS initial processing fee

In addition, the credit report fee is $15 per control person, while the FBI criminal background check fee is $36.25.

 

Have further queries about your NY mortgage license and bonding? You can reach us by calling at 877.514.5146.

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Robin Kix

Robin Kix

Robin Kix is currently the Renewal Department Manager. Since joining Lance Surety in 2014, she has helped thousands of businesses throughout the nation remain compliant at the federal, state and local level. She has significant experience supporting commercial bond lines, particularly in the automobile, transportation and construction industries. Robin and her team work together to create a positive customer service experience at the time of every policy renewal, whether that be finding the best pricing or offering additional assistance.