The Complete Pennsylvania Mortgage Broker License Guide [2020]

Published: Mar 2, 2020
pennsylvania mortgage broker license

 

Mortgage professionals in Pennsylvania have to undergo a licensing procedure with state authorities in order to launch their operations. You need to get a Pennsylvania mortgage broker license, so that you comply with applicable rules. 

The licensing body is the Pennsylvania Department of Banking and Securities. The process is handled by the Nationwide Multistate Licensing System and Registry (NMLS). 

In order to obtain a Pennsylvania mortgage licenses, you have to fulfill a range of requirements. You can delve into the details in the guide below. 

Choose a Mortgage License Type

There are different license types that you can apply for, depending on your exact activities: 

  • Mortgage Broker License (company) – negotiating and arranging first and secondary loans
  • Mortgage Lender License (company) – originating and closing first and secondary loans with own funds
  • Mortgage Loan Correspondent License (company) – originating and closing loans with wholesale table funders or other
  • Mortgage 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 Pennsylvania Mortgage Broker License Requirements

The Department has defined strict criteria that you have to satisfy, so that you can launch your mortgage business. They are slightly different for each license type. 

Business Documents 

When applying for a company license (broker, lender or loan correspondent), you have to provide your business registration documents from the Department of State. 

You also have to showcase the following documents:

  • Trade name (if applicable) – registration with the Department of State
  • Business plan
  • Organizational chart
  • Policies and procedures
  • Books and records location

Criminal Background Checks

You have to provide an FBI fingerprint check, as well as a criminal background history check from the Pennsylvania State Police. For companies, this applies for all control persons, including the qualifying individual. 

Credit Report and Financial Statements

You have to authorize a credit report for all license types. For mortgage companies in Pennsylvania, all control persons have to provide such a report.

In addition, you also have to showcase your latest financial statements for the previous fiscal year. 

Mortgage lenders in PA have to demonstrate proof of a line of credit or mortgage-funding capability of not less than $1,000,000.

Education and State Exams 

All applicants have to complete 20 hours of NMLS approved pre-licensure training, including 3 hours of Pennsylvania law. Then you also have to pass a state test

Provide a Surety Bond 

Most mortgage professionals in Pennsylvania have to provide a surety bond as a part of the licensing process. It ensures your legal compliance. 

The amounts of the Pennsylvania mortgage broker bond vary by license type: 

  • Pennsylvania mortgage brokers – between $50,000 and $150,000 depending on the amount of loan originations in the state, and $100,000 if accepting advanced fees
  • Mortgage lenders – between $100,000 and $500,000 depending on the amount of loan originations in the state
  • Mortgage loan correspondents – between $100,000 and $500,000 depending on the amount of loan originations in the state, and $100,000 if accepting advanced fees

The bonding process entails that you cover a small fraction of the required amount. It is based on the strength of your personal and business finances. Applicants with stable finances can expect rates between 0.5% and 5%.

Want to see the exact cost of your Pennsylvania mortgage broker bond? Fill in the short form below! 

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Complete the Pennsylvania Mortgage Broker License Application

pennsylvania mortgage broker licenseOnce you’ve made sure that you meet all licensing requirements, you can complete the application form for your license type. You can submit all documents online.

If some of the paperwork has to be sent to the Department, within 5 business days you have to mail it to:

Pennsylvania Department of Banking and Securities
Non-Depository Licensing Office
17 N 2nd Street, Ste 1300
Harrisburg, PA 17101-2290 

License and Registration Fees

When submitting your application, you also have to pay the applicable fees

  • Mortgage broker – $1,100, plus a $15 credit report fee per control person
  • Mortgage lender and loan correspondent – $1,600, plus a $15 credit report fee per control person
  • Mortgage originator – $230, plus a $15 credit report fee and $36.25 criminal background check fee

 

Have more questions about getting your Pennsylvania mortgage broker license and bonding? Don’t hesitate to call us 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.