Your Succinct Ohio Mortgage Broker License Guide

Published: Aug 14, 2019
ohio mortgage broker license

 

If you want to launch your operations as a mortgage broker in Ohio, you have to get acquainted with the licensing procedure in the state. 

In order to obtain an Ohio mortgage broker license, you need to satisfy a list of criteria set by the relevant authorities. In this way, they ensure that you are suitable to operate in the capacity of a broker. The procedure entails providing an Ohio mortgage broker bond

The requirements for an Ohio mortgage broker license

In 2017, a new law was introduced, which changed the definitions of mortgage professionals and the process you have to undergo in order to conduct your activities in the state. Now all mortgage lenders, brokers, and servicers have to obtain a Residential Mortgage Lending Act (RMLA) Certificate of Registration from the Division of Financial Institutions at the Ohio Department of Commerce.

The Certificate allows a licensee to engage in the following activities:

  • First and second mortgage brokering 
  • First and second mortgage lending 
  • First and second mortgage servicing 
  • Manufactured housing financing 
  • Reverse mortgage brokering and lending 
  • Lead generation 
  • Mortgage loan modifications

Previously, the active laws were the Mortgage Brokers Act and the Mortgage Loan Act. The new Residential Mortgage Lending Act (RMLA) consolidates the licensing procedure for lenders and brokers and for loan originators. In addition, the old definition of a mortgage broker was rather complex, while now it is simplified to mean an entity that obtains or helps in the obtaining of a loan from a lender in the name of a customer.

In order to apply for an Ohio mortgage broker license, you have to complete the licensing process through the website of the Nationwide Multistate Licensing System & Registry (NMLS). You can consult the full details about the requirements

You have to complete and submit the following documents:

  • Company Form (MU1)
  • Financial statements
  • Registered agent information
  • Primary contact employees
  • Disclosure questions
  • Designated operations manager information
  • Form MU2, FBI criminal background check and credit report for each control person
  • Business entity formation documents
  • Business plan, management chart and document samples
  • Surety bond 

The registration fee is $500, while the NMLS processing fee is $100. You also have to pay $36.25 per person for the FBI criminal background check for MU2 persons. Credit reports cost $15 per person.

Obtaining a mortgage broker bond

ohio mortgage broker license

Even after the legislative changes of 2017, mortgage professionals in Ohio still have to obtain a surety bond in order to receive a state license. The bonding amount has to be between $50,000 (plus $10,000 for additional location) and $150,000. The exact sum is set as 0.50% of the licensee’s aggregate loan amount of residential mortgage loans originated in the previous calendar year.  

The purpose of the bond requirement is to guarantee that you will comply with state laws in your activities as a mortgage broker. The term of your surety bond has to match your registration term with the Department of Commerce. Additionally, you have to use its official bond form

The bonding process entails that you pay a fraction of the required bond amount. It is based on the strength of your personal and business finances. If your profile is solid, you can expect to pay about 0.5% to 5% of the bond amount. Thus, if you have to post a $100,000 surety bond, your premium can be between $500 and $5,000. 

Would you like to get assistance with your Ohio mortgage broker license and bonding? You can contact us at 877.514.5146 to speak with our bonding experts. 

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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.

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