ALABAMA MORTGAGE BROKER AND LOAN ORIGINATOR LICENSING

Transcription

1 ALABAMA MORTGAGE BROKER AND LOAN ORIGINATOR LICENSING Alabama Mortgage Licensing Act, Ala. Code et seq. 1 directly or indirectly solicits, processes, places or negotiates loans a borrower. Mortgage loans include 1 st or subordinate loans on 1-4 family owneroccupied dwellings in Alabama, if occupied as principal residence of the borrower. Originator Licensing and Rules N/A. 12 hours of approved continuing education in primary and subordinate financing transactions (to be completed by officers and principals of the licensee who are actively involved in daily operations of the licensee).. Net Worth Financial statement submitted with license application must demonstrate minimum tangible net worth of $25,000. Financial statement must be not more than 90 days old and prepared by a CPA (per the license application m, 3/03 version). Yes. All licensed brokers must maintain a principal place of business in Alabama. s are annual and expire 12/31. Related $100 license investigation fee; $500 initial license fee. Annual license renewal fee = $ There is a 10% penalty late renewals. d brokers must appoint a registered agent. Application license must include resumes of principals/officers, brokerage agreement to be used with customers, letters of reference, and general plan of business. Application must be submitted on the Department s yellow m, NOT photocopied m. Mortgage broker licensees must notify regulator of specified events including change of address, filing of bankruptcy, institution of license revocation proceedings, or felony conviction of its officers or directors (15 day notice), change of principals or directors (30 day notice). Banking Department may examine licensees as necessary, but at least every 24 months. e pays the examination fee. Civil penalty up to $3,000 may be imposed violation of a Banking Department cease-anddesist order, or $15,000 if the violations are knowing. Willful violations of licensing law are misdemeanors. Alabama State Banking Department Bureau of Loans 401 Adams Avenue Suite 680 Montgomery AL (334) (334) (fax) 1 Those who make consumer loans from a principal place of business in Alabama are required to be licensed by the Banking Department under the Consumer Finance Law, Ala. Code et seq. 2 e may claim exemption from renewal fee if 50% or more of its loans are made to low and moderate income borrowers and licensee is not subject to encement action by any government agency.

2 ALASKA MORTGAGE BROKER AND LOAN ORIGINATOR LICENSING ne Related N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A

3 ARIZONA MORTGAGE BROKER AND LOAN ORIGINATOR LICENSING Mortgage and Mortgage Bankers Act, Ariz. Rev. Stat et seq. See also regulations of the State Banking Department, Ariz. Admin. Code tit. 20 Art 9. directly or indirectly makes, negotiates, or offers to make or negotiate a loan, compensation. Mortgage loans include all loans secured by s or deeds of trust on Arizona property, not just residential loans. Originator Licensing A licensee must appoint a responsible individual who is a resident of Arizona with the required experience. The responsible individual must be in active management of the licensee s office. Mortgage broker licenses issued to entities cover the entity s officers, directors and employees, but independent contractors are not considered employees. Ariz. Rev. Stat (E). Loan originators are not individually licensed but a licensee may not hire a person without conducting a reasonable background investigation (the results must be kept at least 2 years). Three years experience in brokerage, lending or a related business, during the 5 years immediately preceding the application a broker license. Partial credit toward experience is available if one has experience as member of the bar, paralegal, loan underwriter, real estate broker, escrow officer, and the like. 24 hours of classroom education and success on a test administered by the State Banking Department. Coursework must include law, negotiable instruments, broker law, escrow agent law, recordkeeping requirements, principal and agent law, arithmetical computations, real estate lending principles, RESPA, TILA and securities law. 3 $10,000 brokers whose investors are solely institutional investors and $15,000 others. Ariz. Rev. Stat (H)., but an applicant a license must submit current financial statements with the application. Yes; each licensee must maintain a principal place of business in the state. Ariz. Rev. Stat (F). s are annual; license year is October 1 through September 30. s not renewed by October 31 expire. Related $800 application fee the 1 st office and $250 each additional office, plus $29 fingerprint processing fee each set of fingerprints submitted. renewals due annually; renewal fee is $250 if the broker negotiates or closes 50 or fewer loans in the preceding calendar year, 4 and $500 otherwise, plus $200 each branch. Knowing failure to comply with the Mortgage and Mortgage Bankers Act subjects a person to a $5,000 civil penalty. tice of change of a licensee s office location must be given to the Banking Department within 5 days of the change; if the responsible individual changes, notice of the fact must be given within 10 days. A licensee has 90 days to replace its responsible individual. Mortgage broker licenses are not transferable. Arizona State Banking Department 2910 N. 44 th Street Suite 310 Phoenix AZ (602) (602) (fax) 3 The examination and course of study requirements can be waived a person applying a broker license who has been a licensee or a responsible person within the six months immediately prior to the submission of the application. 4 Loans included in the calculation of volume include all loans, not just Arizona loans, per Arizona Banking Department s Substantive Policy Statement. MB-4 (9/29/95).

4 ARKANSAS MORTGAGE BROKER AND LOAN ORIGINATOR LICENSING Fair Mortgage Lending Act, Ark. Code Ann et seq. See also administrative rules of the Arkansas Securities Commissioner as applicable to broker (effective 4/1/03). directly or indirectly does any of the following compensation: (1) accepts or negotiates loans; (2) solicits or offers to solicit loans; (3) negotiates the terms or conditions of loans; (4) issues loan commitments or rate lock guarantees to borrowers. Ark. Code Ann Loan originators are individually licensed by the Arkansas Securities Commissioner. Mortgage brokers employees whose duties are merely clerical and administrative are not required to be licensed. A broker that employs loan officers must provide a list of the loan officers to the Arkansas Securities Department, and ensure that each loan officer is licensed. If a loan officer s employment terminates, the employer must notify the Securities Department within 30 days. At least 3 years of lending experience. (If the applicant is a corporation or partnership, one of its partners or officers must have the required experience.) N/A $50,000 $25,000 s are renewed annually within 120 days of the licensee s fiscal year-end. Related $750 nonrefundable license application fee the main office, plus $100 each branch office. renewal fee is $350 the main office and $100 each branch. (There is a $50 per day late fee renewals filed late, up to 30 days maximum; after 30 days, the unrenewed license expires.) Application loan officer license requires $50 fee and $50 annual renewal. Change of control application requires payment of a $100 fee Each branch must have a branch manager; the branch manager is responsible the business conducted at that location. Changes in branch managers must be reported to the Securities Commissioner within 30 days. Mortgage broker licenses are not transferable. changes that must be reported are changes in address, location of records, and change in control of the licensee. Arkansas Securities Department Heritage West Building Suite E. Markham Little Rock AR (501) (501) (fax)

5 CALIFORNIA MORTGAGE BROKER AND LOAN ORIGINATOR LICENSING (REAL ESTATE BROKER LAW) 5 Real Estate Broker Law, Cal. Bus. Prof. Code et seq. See also regulations of the Real Estate Commissioner, Cal. Code of Regulations, Title 10, Chapter 6, Art. 16. (1) brokers or negotiates loans 6 secured directly or collaterally by liens on real property, or (2) buys and sells promissory notes secured by real estate. Cal. Bus. Prof. Code (d), (e). Persons who negotiate loans on behalf of licensed real estate brokers (i.e., brokers licensed under the real estate law) must be individually licensed as real estate salespersons. Each real estate broker licensee (other than a sole proprietor) must have a designated officer who is responsible the supervision and control of the licensee s business. A designated officer must have his or her own real estate license. At least 2 years of full-time licensed salesperson experience within the 5 years prior to applying a real estate broker license. 7 or equivalent experience may be substituted the 2 years experience. d real estate brokers must complete 45 hours of continuing education over the 4-year license period. Yes; a licensed real estate broker must maintain a place of business in Calinia the transaction of business. Cal. Bus. Prof. Code period is 4 years. s may be filed 90 days bee the license expires. Related $165 a corporate applicant a real estate license. $120 a real estate license issued to an individual. Late renewal fee is $248 brokers and $180 salespersons. If a real estate broker does business using a fictitious or trade name, the trade name must be filed with the county clerk in the counties where the name is used. Branch offices are separately licensed. A person acting as a real estate broker without a license is subject to a fine up to $10,000, imprisonment up to 6 months, or both. (The fine is up to $50,000 if the offender is a corporation.) Real estate broker licenses are not transferable. Real estate brokers must notify the Commissioner of Real Estate within 5 days of employing any salesperson. If the designated officer changes, the real estate broker must file change ms with the Department of Real Estate. Department of Real Estate 2201 Broadway P.O. Box Sacramento CA (916) (916) (fax) 5 The real estate law applies to those brokers who do not lend money, make the credit decision in a transaction or service loans. 6 The term negotiation excludes certain activities when permed by employees of a licensed real estate broker, including preparing ads loan transactions, distributing circulars or flyers relating to loans, providing factual inmation about loans if the inmation is prepared by the real estate broker/employer, entering inmation on application ms or into computer databases, and preparing and mailing verification of, employment, deposit and rent ms. These and other limited activities do not rise to the level of negotiation requiring a license. See Cal. Code Reg. tit in lieu of the required experience can include any of the following: (1) college graduation with A.A. degree plus completion of real estate courses and 1 year full-time employment as licensed Calinia sales-person; (2) 4-year college degree + completion of 8 required courses; or (3) admission to practice law in any state.

6 COLORADO MORTGAGE BROKER AND LOAN ORIGINATOR LICENSING Related ne N/A N/A N/A N/A N/A N/A N/A N/A Colorado has a broker law that defines a broker as a person, association or firm that negotiates or attempts to negotiate a loan a borrower a fee or commission, but this law does not require brokers to be licensed. See Colo. Rev. Stat (6). N/A

7 CONNECTICUT MORTGAGE BROKER AND LOAN ORIGINATOR LICENSING For brokering first loans: ndepository First Mortgage Lenders and Mortgage Act, Conn. Gen. Stat. 36a-485 et seq. For brokering second loans: Second Mortgage Act, Conn. Gen. Stat. 36a-510 et seq. 8 For brokering first loans: directly or indirectly negotiates, solicits, arranges, places or finds a first loan to be made by a lender, and earns compensation the eft. For brokering second loans: yes, same definition as above, but second s. Loan originators must be registered with the Department of Banking by their broker employer. A loan originator may not originate loans more than one employer simultaneously. Conn. Gen. Stat. 36a-486(b). Loan officers do not include the officers of a corporation licensed as a broker, the general partner of a partnership licensed as a broker, the members of a limited liability company licensed as a broker, or the sole proprietor of a sole proprietorship licensed as a broker. At each licensed location of the broker, a supervisor with at least 3 years of experience in the business. experience must be gained in the previous 5 years (per license application). ( must be documented on the license application m.) $40,000 $25,000 (documented by financial statement not more than 6 months old) s expire on September 30 of evennumbered years. s due by September 1. Related $400 nonrefundable application fee; annual license renewal fee = $400. Fee to register a loan originator (first s) = $100 (paid every two years, along with the broker s license renewal). Loan originator registration (second s) = $50. Late filing fee late renewal of license = $100. When a loan originator s employment is terminated, the employing broker must notify the Department of Banking. applicants who are sole proprietors must provide their social security number and federal tax ID number. s are not transferable. Separate license required each branch office. Each first loan made or brokered without a license subjects the person to a civil penalty up to $7,500. Connecticut Banking Department Consumer Credit Division 260 Constitution Plaza Hartd CT (860) (860) (fax) 8 Although there are two separate licensing laws depending on whether first or secondary loans are brokered, a person licensed under the secondary loan act is not required to have a license to originate first loans if he originates or brokers loans under the second license and the number of first s brokered is fewer than 12 in a period of 12 consecutive months.

8 DELAWARE MORTGAGE BROKER AND LOAN ORIGINATOR LICENSING Originator Licensing and Rules Mortgage Loan Broker Act, 5 Del. Code See also operating regulations adopted by the State Bank Commissioner, Del. Admin. Code tit does the following compensation or gain, either directly or indirectly: (1) negotiates or offers to negotiate, arrange or solicit loans on behalf of borrowers; or (2) holds himself out as able to serve as agent any person in an attempt to obtain a loan; or (3) holds himself out as agent to negotiate the terms and conditions of loans on behalf of a lender, if not the employee of the lender. N/A (employees of licensed brokers are exempt from licensing and may act under their employer s license) ne $25,000 (letter of credit $25,000 may be substituted) In-State Office s are annual and expire on 12/31. Related $250 investigation fee application licensure; $250 annual license fee. If licensee maintains its loan files outside Delaware, annual supervisory fee of at least $1,000 is charged ($500 minimum if loan files maintained in state). d brokers must maintain agent service of process in Delaware. applicant must provide 3 business references. Each branch office must have a separate license. (s will not be issued to net branches.) s are not transferable. Changes of name, address, and changes of partners, officers, and directors must be provided to the State Bank Commissioner. Violations of the Mortgage Loan Broker Act subject to fine of $50- $200 each offense, plus imprisonment up to 3 months. Delaware State Bank Commissioner 555 E. Loockerman Street Suite 210 Dover DE (302) (302) (fax) 9 Mortgage Loan Broker Act applies to both first and second loans secured by owner-occupied Delaware residential real property.

9 DISTRICT OF COLUMBIA MORTGAGE BROKER AND LOAN ORIGINATOR LICENSING Mortgage Lender and Broker Act, D.C. Code Ann et seq. See also administrative rules of the Department of Banking and Financial Institutions (Code of District of Columbia Municipal Regulations, Tit. 26A, Ch. 11, Mortgage Lenders and ). 10, compensation, directly or indirectly accepts or offers to accept an application a loan, 11 solicits or offers to solicit a loan on behalf of a borrower, or offers to negotiate terms and conditions of a loan on behalf of a lender. D.C. Code (10). If the loan is payable to the broker, the broker must be licensed as a lender, not a broker (i.e., table-funding brokers are considered lenders). Originator Licensing N/A ne specifically required, but applicant must have sufficient financial responsibility, business experience and general fitness to engage in business as a broker. applicant must sign an affidavit that he/she meets these criteria (attachment E of license application m). amount depends on volume of business in previous 3 years: if none, bond is $12,500. If up to $1MM, bond is $12,500; if greater than $3MM, bond is $50,000 (maximum bond a single office). Maximum bond multiple offices applying licenses simultaneously = $200K. applicant must capitalize the business with at least $10,000. D.C. Code Ann (b)(3). In lieu of capital the broker can submit evidence of a bank line of credit at least $10,000 (per license application m). s expire one year after their effective date. D.C. Mun. Regs. tit. 26A, R Annual fees are assessed on or bee 4/25 annually and assessment must be paid by 5/25. Related n-refundable license investigation fee = $100; non-refundable application fee = $500. Annual license fee = $500. (Total of $1,100 must be submitted with application license.) renewal fee = $400 + $6.60 per loan brokered in the previous license period. 12 D.C. Mun. Regs. tit. 26A, R Late fee late filing of renewal application = $300. D.C. Mun. Regs. tit. 26A, R Late fee failure to file annual report timely: $50 per business day the report is late. Each branch office must have its own license. s are not transferable; notice must be given to the Superintendent of Banking upon change of location, closing of any office, identity of any new principal officer, member, partner or director. Each director, senior officer, partner and principal must consent to a background check (per license application) and provide a personal financial report and biographical inmation. Company credit report must be provided with license application. Corporations, LLCs, etc. must provide evidence of good standing (authority to do business in DC). d brokers must maintain resident agent in D.C. Penalty acts in violation of licensing law while unlicensed = $1,000 per violation. D.C. Mun. Regs. tit. 26A, R Department of Insurance, Securities and Banking First St. NE Washington DC (202) (202) (fax) 10 Effective date of the Municipal Regulations is March 5, Mortgage loan is limited to 1-4 family residential properties; a license is not required to broker commercial loans. 12 Maximum annual assessment regardless of number of loans brokered in previous license year is $50,000. D.C. Mun. Regs. tit. 26A, R Formerly known as the Department of Banking and Financial Institutions; On March 1, 2004, the Council of the District of Columbia adopted a law combining the Department of Insurance and Securities Regulation with the Department of Banking and Financial Institutions. The new agency is the Department of Insurance, Securities and Banking (DISB).

10 FLORIDA MORTGAGE BROKER AND LOAN ORIGINATOR LICENSING Mortgage Brokerage and Lending Act, Fla. Stat et seq. 15 See also administrative rules of the Department of Financial Services, Fla. Admin. Code Ch. 3D-40 ( Rules Regulating Mortgage Brokerage ). is engaged compensation either directly or indirectly in acceptance of applications loans, solicitation of loans on behalf of borrowers, negotiation of terms or conditions of loans on behalf of lenders, or negotiation of sales of existing loans to institutional lenders. Originator Licensing Each associate of a broker must be identified to the Department of Financial Services by his or her employing broker and if the associate acts as a broker (see definition in previous column), he or she must be individually licensed as a broker. An associate is a person employed by or acting as independent contractor a broker. The report of associates must be updated quarterly and include the person s social security number, name and other identifying inmation. 16 The principal broker a licensee must have at least 1 year of experience as a principal broker or have been actively involved in the business 1 year. 14 Pre-requisite to licensing: 24 hours of classroom education on primary and subordinate financing, plus success on an examination. 17 Fla. Admin. Code 3D , 3D Continuing education during license period: 14 hours of education of which at least 4 cover the Mortgage Brokerage and Lending Act and its regulations. 18 Fla. Admin. Code 3D In-State Office (in-state office requirement was repealed in 1999). s issued to individual brokers are renewed biennially beginning 9/1 of each oddnumbered year. 19 Fla. Admin. Code 3D s issued to brokerage businesses are renewed biennially beginning 9/1 of each evennumbered year. Fla. Admin. Code 3D Related Mortgage broker license issued to a natural person: $200 application fee; $23 fingerprint processing fee. Mortgage broker business license: $425 application fee main office + 23 fingerprint processing fee each 10% or greater owner, CEO and each director. Application fee branch office license = $225. fee is $375 principal office, $225 each branch. An individual may obtain a license as a broker; a business that employs brokers is licensed as a brokerage business. A person licensed as a broker cannot be simultaneously associated with more than one licensed brokerage. A brokerage business must have a designated principal broker; this person must be in control of and supervise the business. A broker must notify the Department of Financial Services within 30 days of any change in its principal broker. changes that must be reported include change of address, officer or director, conviction of any crime involving fraud, and bankruptcies. Fla. Admin. Code 3D s are not transferable. Branch offices are separately licensed. Each branch must have designated branch broker who is in control of the business. Fla. Admin. Code 3D A fictitious name used by a licensee must be filed registered with the Florida Secretary of State. Department of Financial Services Office of Financial Regulation 200 East Gaines Street Tallahassee FL (850) (850) (fax) Acting as a broker without a license is 3 rd degree felony. 14The required education must be taken at an accredited school. 15 The licensing law covers those who broker residential loans, and loans on commercial property or property containing 5 or more residential dwelling unites if the borrower is a natural person or the lender is a non-institutional investor. Fla. Stat (18). Lien priority of the loan is immaterial. 16 A broker who violates the rule on reporting associates may be fined up to $500 and his license may be suspended. Fla. Admin. Code R. 3D (5). 17 Test-taker must achieve 75% correct answers on a test of 100 multiple-choice questions, taken within 3 hours. Passing score is good 1 year from test date. Fla. Admin. Code 3D Cutoff date the test is the 15th of the month preceding the month in which the applicant desires to take the test (per bulletin of the Department). Testing conducted at sites throughout Florida. Test must be passed within 90 days of Department s consideration of license application. 18 e must keep records of the completion of the continuing education at least 4 years. 19 An initial broker license is valid the remainder of the biennial license period which it is issued (Mortgage Broker Application Instructions, p. 2). Example: if license issued on 12/103, it is valid until 9/1/05.

11 Georgia Residential Mortgage Act, Ga. Code Ann et seq. See also rules of the Department of Banking, Ga. Admin. Code ch and , which apply to licensed brokers. Yes. Residential Mortgage Act requires the licensing of persons who broker loans made to natural persons if the loan is secured by an interest in 1-4 family residential property located in Georgia, excluding rental homes and second homes. Mortgage brokers and loan processors are licensed. Loan processors are persons who collect and/or verify inmation necessary to underwrite a loan application, including those who review applications, order credit reports, surveys and the like; obtain verifications of income or deposits, provide escrow account analyses or disclosure ms the loan, and so th. Ga. Comp. R Regs R The employees of a licensee are not required to be separately licensed if they work exclusively the licensee under the supervision of the licensee and compensation is not reported on a Form GEORGIA MORTGAGE BROKER AND LOAN ORIGINATOR LICENSING Yes; brokers must have at least 2 years of verifiable full time experience. Ga. Comp. R Regs R This experience must be documented with a letter from the previous employer and W-2 wage statements. Yes; licensees must complete at least 40 hours of education as a condition of licensing. Four of the hours must be on Georgia law and regulations. $50,000 unless the applicant has minimum net worth of $100,000. $100, unless the applicant provides a surety bond of $50,000. Georgia has reciprocity; an out of state broker can obtain a Georgia license without an in-state office if the home state of the applicant permits Georgia brokers to obtain a license without maintenance of an in-state office. Ga. Code s are annual and expire on June 30 with renewals available from April 1. There is a $300 fee late renewals. Related $250 nonrefundable license investigation fee + annual license fee of $ $30 fee each processing of fingerprint cards, if required. Branch office license fee is $350; if an individual broker has more than 1 location, additional locations after the 1 st pay a $25 fee per license year. application must include the applicant s policies handling consumer complaints. Principal officers, directors and 10% or greater shareholders must provide background statements, authorization credit checks and financial statements; the Department may also require fingerprints. A licensee must check background of his employees within 90 days of their hire date, and do a criminal background check of branch managers. The criminal background check and credit report check on branch managers must be submitted to the Department. Certain changes must be reported to the Department, including change of location, opening of new office, change of owners or management, entry of judgment against the licensee, or claims against the licensee s surety bond. Violation of the licensing law is a misdemeanor, subject to fine up to $1,000, imprisonment up to 1 year or both. Georgia Department of Banking and Finance 2990 Brandywine Road Suite 200 Atlanta GA (770) (770) (fax) 20 net worth was increased from $25,000 to $100,000 effective July 1, Annual license fee was increased from $400 to $500 effective August 17, See Ga. Comp. R Regs R (4).

12 HAWAII MORTGAGE BROKER AND LOAN ORIGINATOR LICENSING Mortgage and Solicitors Act, Haw. Rev. Stat et seq. does the following, directly or indirectly, gain or compensation: makes, negotiates, acquires or offers to make, negotiate or acquire a loan on behalf of a borrower. Mortgage solicitors are individuals not licensed as brokers, but who perm the services of a broker. Employees of licensed brokers who act as loan solicitors must be separately licensed. At least 1 officer or member of the applicant must have 2 years of experience in primary or subordinate financing. N/A $15,000 N/A Yes; every licensed broker must maintain a principal place of business in Hawaii. Haw. Rev. Stat (i). The place of business must comply with local zoning codes (see the application m, Instructions ). Biennial licenses expire on 12/31 of even numbered years. Failure to renew by 12/31 in evennumbered years is an automatic feiture of the license (per application instructions). Related Mortgage brokers: If license applied between 1/1 of odd-numbered year and 12/31 of odd-numbered year, $320; if license applied between 1/1 of even-numbered year and 12/31 of even-numbered year, $185. Mortgage solicitors: If license applied between 1/1 of odd-numbered year and 12/31 of odd-numbered year, $145; if license applied between 1/1 of even-numbered year and 12/31 of even-numbered year, $85. A broker must be at least 18 years old. Branch offices are separately licensed. Corporations and partnerships must be registered with the Business Registration Division, Department of Commerce, as a condition to licensing. Business entities applying a license must appoint a designated principal -- this is the person that must satisfy the experience requirements. If a licensed solicitor terminates employment with a licensed broker, the solicitor s license must be returned to the Professional and Vocational Licensing Division. Changes in office location must be reported to the regulator. Violation of the licensing law is punishable by a fine up to $1,000 or imprisonment up to 1 year, or both. Department of Commerce and Consumer Affairs Professional and Vocational Licensing Division P.O. Box 3469 Honolulu HI (808) (808) (fax)

13 IDAHO MORTGAGE BROKER AND LOAN ORIGINATOR LICENSING Idaho Residential Mortgage Practices Act, Idaho Code et seq. does the following compensation or gain: directly or indirectly accepts applications 1-4 family residential loans, assists or offers to assist in preparation of loan applications on behalf of borrowers, or offers to negotiate the terms of loans with any person making loans. Persons employed on a full-time basis by a licensed broker, and persons employed by not more than 1 licensed broker on a parttime basis, are exempt from licensing (they may act under their employer s license). Idaho Code (7). A broker and the person in charge of the broker s principal place of business must have at least 3 years experience in residential lending. Idaho Code (2). N/A $10,000 plus an additional $10,000 bond each branch office. $10,000. s are annual and must be renewed by 8/31. Related $200 nonrefundable application fee; annual fee of $100 the license. Department of Finance may examine licensed brokers at its discretion; licensee pays the cost of the examination. Applicant a license must submit ms to be used in its business along with the license application. es must report certain changes to the regulator, including change of address, consolidation of locations, closing any office, and changes in management. Failure to obtain a license, if one is required, is a felony. Department of Finance may seek fine up to $5,000 each violation of the licensing law. Idaho Department of Finance P.O. Box Boise, ID (208) (208) (fax) umer/consumer_home.asp

14 ILLINOIS MORTGAGE BROKER AND LOAN ORIGINATOR LICENSING Illinois Residential Mortgage Act, 205 ILCS 635/1 et seq. See also the rules of the Commissioner of Banks and Real Estate, 205 Ill. Admin. Code tit. 38, 1050 et seq. brokers a loan to or the benefit of a natural person and the loan is made primarily personal, family or household purposes and is secured by a on residential real property or certificates of stock in a cooperative housing corporation. 22 Loan originators are required to be licensed individually unless (1) employed by a licensed broker, and (2) registered by the employer with the Commissioner of Banks and Real Estate. 23 Employees of licensed real estate brokers that do not hold their own licenses may not act more than one licensed broker. 205 ILCS 635/1-4(d) (3). Also, the application m the license requires the applicant to list all independent brokers or agents who are compensated assistance in permance of regulated acts (including name, address and social security number). Officers and directors of the applicant must have at least 3 years experience in real estate finance and fair lending or have completed a course of study in real estate finance within 9 months of receiving a license. $20,000. Ill. Admin. Code tit $35,000 a broker not engaged in lending. This will increase to $50,000 two years after the effective date of P.L (Laws of 2003). Audited financial statements are required of new license applicants (dated within 90 days)., if the broker has net worth of at least $100,000 and a $100,000 fidelity bond; otherwise, the broker must have a full service office in Illinois. A fullservice office is one with staff adequate to handle communications with borrowers and answer questions on the loan applications. es are biennial. fee is $2,600 a 2- year period. s filed late are subject to $500 fine first 30 days and $1,000 thereafter until renewed. Individual branches are individually licensed. tice of Intent to Establish Additional Full Service Office must be accompanied by $250 fee. 24 Related n-refundable license application fee = $1,500 (certified check or money order); license fee = $1, For provisional registration of loan originators (from 7/1/04 to 12/31/04), a fee of $125 per loan originator. (See footnote 1 below.) fees are processed in Springfield IL office and should be mailed to that office (see Regulatory Agency column). d brokers must maintain a fidelity bond of $100,000 covering employees in a position to receive or handle money or make entries in the licensee s books. e must report certain situations to the Commissioner of Banks and Real Estate, including change of address or name, change in officers or directors, change in inmation reported on an application a license, occurrence of bankruptcy, or demand repurchase of a loan. Foreign corporations seeking licenses must obtain certificate of authority to do business in Illinois (per license application instructions). Department of Financial and Professional Regulation, Division of Banks and Real Estate 310 South Michigan Avenue Suite 2130 Chicago IL (312) (312) (fax) Address license fees: Office of Banks and Real Estate Bureau of Residential Finance 500 East Monroe Street Springfield IL The Office of Banks and Real Estate adopted emergency rules registration of loan originators, effective April 30, 2004 providing provisional registration of loan originators. The provisional registration period is July 1, 2004 through December 31, After December 31, 2004, a regular certificate of registration is required in order a person to act as a loan originator. See Ill. Admin. Code tit. 38, et seq. 23 The requirement a licensed broker to register its loan originator employees with the Commissioner of Banks and Real Estate became effective on June 1, With the notice of full service office, the office lease and employment contract with the office manager must be included (per instructions to the application m). 25 The $1,200 license fee is billed to the applicant when the application is approved and must be paid within 10 days or the approval of license will be cancelled (per the application m).

15 INDIANA MORTGAGE BROKER AND LOAN ORIGINATOR LICENSING Loan Broker Act, Ind. Code et seq. promises to procure a loan any person or assist a person in procuring a loan from a third party, or if the person promises to make a loan to any person or is involved in loan origination activities. Loan originators employed by loan brokers must be registered with the Securities Commissioner. Ind. Code hours of academic instruction in loan brokerage is required all persons who originate loans or negotiate loan terms with borrowers. Ind. Code (d). $50,000 Yes (application m requires applicant to list place of business to be maintained by the loan broker in Indiana). s expire on January 1 in the year after the year in which they were issued. Related Initial fee filing a license application = $200. renewal fee = $200. Loan brokers must appoint an agent service of process. If a loan originator employed by a licensed loan broker terminates his employment, that fact must be reported to the securities commissioner. Securities commissioner may impose a civil penalty up to $10,000 each violation of the Loan Broker Act. Ind. Code (a). Secretary of State Securities Division 302 West Washington St. Room E-111 Indianapolis IN (317) (317) (fax)

16 IOWA MORTGAGE BROKER AND LOAN ORIGINATOR LICENSING Mortgage Bankers and Act, Iowa Code 535B.1 et seq. negotiates, arranges or attempts to negotiate or arrange more than 4 first loans on Iowa residential property. N/A -- a person who acts solely as an employee or agent of a licensed broker is not required to be separately licensed. $15,00 brokers engaged only in brokerage; $30,000 if the broker is also engaged in banking. Net Worth (but a recent financial statement must accompany the application a license). The financial statement must be audited or reviewed by an independent CPA. In-State Office s expire on 6/20 in the year after they are issued. applications must be filed by June 1. Related $500 application fee; $200 license renewal fee. Foreign corporation applicants broker license must be qualified to do business in Iowa. Mortgage brokers must identify on the license application those institutions to whom they have brokered loans in the past 12 months. Iowa Division of Banking 200 E. Grand Avenue Suite 300 Des Moines IA (515) (515) (fax)

17 KANSAS MORTGAGE BROKER AND LOAN ORIGINATOR LICENSING Kansas Mortgage Business Act, Kan. Stat. Ann et seq. See also administrative rules of the State Bank Commissioner applicable to brokers, Kan. Admin. Code et seq. Yes, a broker license is required if the person is engaged in business, meaning, compensation or gain, directly or indirectly making, originating, servicing, soliciting, placing, negotiating, acquiring, selling, or arranging 1-4 family residential loans others. A broker s loan originators must be registered. Loan originators must be individually registered with the Department of Banking. Registration is accomplished by identification of the loan originator on the license application of the employing broker and submission of Form G with the application. The Department of Banking may conduct a records investigation on any loan originator. 26 N/A Loan originators must complete at least 8 hours of education annually. Varies, depending on whether the broker maintains an office in Kansas. If yes, bond is $50,000. wise, bond is $100,000 plus minimum net worth of $50,000. Depends on whether the broker maintains a Kansas office. If so, no minimum net worth required. wise, $50,000. s are biennial and are renewed in oddnumbered years. applications must be filed at least 30 days bee a license expires. ( ms are mailed 60 days bee license expiration according to the application m instructions. ) Related $600 nonrefundable application fee the principal place of business + $200 each branch office. There is a $75 registration fee per registered loan originator. There is a $25 fee to amend inmation provided on a license application. Biennial license renewal fee is $400. A loan originator may be employed by only 1 broker at a time. The General Instructions to the application m (rev. 6/2003) states that It is the opinion of the Kansas Secretary of State that companies exclusively engaged in the business are exempt from registering with the Kansas Secretary of State as eign corporations. Kansas State Bank Commissioner 700 SW Jackson Street Suite 300 Topeka KS (785) (785) (fax) 26 A loan originator means a person whose job responsibilities include direct contact with borrowers during the loan origination process, including soliciting, negotiating, acquiring, arranging or making loans others, obtaining personal or financial inmation from borrowers, assisting with preparation of loan applications or other documents, quoting loan rates or terms, or providing required disclosures. Loan originators do not include persons whose responsibilities are solely clerical.

18 KENTUCKY MORTGAGE BROKER AND LOAN ORIGINATOR LICENSING Mortgage Loan Companies and Loan Act, Ky. Rev. Stat. Ann et seq. See also regulations of the Office of Financial Institutions on brokers, Ky. Admin. Regs. (KAR) 12:002 to 12:095. Yes, if a person brokers loans on 1-4 family residential property in Kentucky, or holds himself out as an agent of borrowers or lenders. Loan officers are required to be registered with the Office of Financial Institutions effective July 1, Loan officers must be W-2 employees of licensed brokers, according to the Department of Financial Institutions; independent agents may not act as loan officers unless licensed as brokers.. For brokers, a 30 hour training course, unless the applicant a broker license has held a broker license from another state at least 1 year. Ky. Rev. Stat (6). For loan officers, at least 12 hours of education annually, at least 6 of which are in the classroom - effective July 1, $50,000 (a letter of credit or escrow agreement a savings certificate may be substituted the bond)., but per the instructions to the license application, a new venture must be capitalized sufficiently to carry on a new business. Initial balance sheet and 12- month projected cash flow statement must be included with the application m. Yes, since September 24, 2003, a broker must have a physical office in Kentucky. The physical office cannot be a post office box; it must have a street address and be accessible to the general public, holding itself open at regular business hours. There are special requirements use of a residence as a place of business (must comply with zoning requirements, etc.). KAR 12:075. s expire on June 30 and must be renewed annually by June 20. Late renewals result in a $250 reinstatement fee. Related Initial investigation fee $350 principal office + $250 each branch office. Initial license fee = $450 per year the principal office + $250 per year each KY branch office licensed simultaneously, if application filed between July 1 and December 3, and $150 per year the principal office of the broker + $100 per year each KY ranch office licensed simultaneously, if application filed between January June 30. Persons whose responsibilities are merely clerical and loan processing personnel are not considered loan officers. A loan processor can work under the supervision of a broker or loan officer to gather inmation, request inmation, assemble loan files and the like, without registration. Foreign corporations seeking broker licenses must qualify to do business in Kentucky. The eign corporation qualification must have been in place at least 6 months bee the application is filed. Persons with more than 10% ownership in an applicant, and the applicant s officers and directors, must agree to authorize a credit report. Greater than 10% owners must provide signed, current financial statements. If applicant plans to have branch offices, the branch office manager must be identified each branch. Department of Public Protection Office of Financial Institutions 1025 Capital Center Drive Suite 200 Frankt, KY (502) (502) (fax) Loan officer registration fee is $50. Those filing claim of exemption from licensing must pay $150 fee The requirement registration of loan officers was added by Ch. 64, Laws of 2003 (H.B. 287), effective June 24, HUD approved es are exempt from licensing but must file exemption certificate and pay exemption fee (per inmation on website, visited 6/15/04).

19 LOUISIANA MORTGAGE BROKER AND LOAN ORIGINATOR LICENSING Residential Mortgage Lending Act, La. Rev. Stat. Ann. 6:1081 et seq. is engaged, compensation, in direct loan origination and funding, or offering to negotiate, place or find a residential loan another person. Yes, an originator must be licensed. An originator is a person who interviews consumers in connection with applications loans; but not a person whose responsibilities are merely clerical. A W-2 employee of a licensed broker who operates under the control of the licensee and works only one licensee is not an originator required to have an individual license. (Policy Statement, Office of Financial Institutions, August 2003.) Loan originators must file a separate license application m and provide consent a background investigation. N/A 10 hours of continuing education per license year. La. Rev. Stat. 6:1094.C (1). There is reciprocity with other states whose continuing education requirements are equivalent to or higher than Louisiana's. [La. Rev. Stat. 6:1094.D. $50,000 as substitute minimum net worth of $50,000; otherwise, no surety bond required. $50,000 or more as evidenced by a financial statement prepared by an independent CPA. 29 (Pledge of deposit account or $50,000 surety bond may substitute.). s expire annually on December 31; renewal filings are due on December 1. Related Initial application fee broker license = $400; annual license renewal = $300. Initial application fee loan originator license = $100. Fee change of employment of licensed originator = $50. Those exempt from licensing but subject to registration must pay a $400 registration fee. Foreign corporations applying broker license must be qualified to do business in Louisiana. All corporate entities may engage in brokerage only through individual licensees with broker or originator licenses. An agent service of process in Louisiana must be appointed. If a loan originator changes his employment, notice of that fact must be given to the Commissioner of Financial Institutions within 30 days. Filing fee is $50 ($100 if the filing is late). Office of Financial Institutions P.O. Box Baton Rouge, LA (225) (225) (fax) 29 Financial statement showing the required minimum net worth cannot be more than 18 months old at time of license renewal.

20 MAINE MORTGAGE BROKER AND LOAN ORIGINATOR LICENSING Maine Consumer Credit Code, Me. Rev. Stat. Ann. tit. 9-A et seq. (dealing with credit service organizations). Yes, persons who arrange extensions of credit or provide assistance to consumers seeking extensions of credit. Such persons are licensed as credit services organizations. N/A $10,000 s must be renewed by 1/31 annually. Annual renewal fee is $100. Related $200 application fee credit services organization license. Annual renewal fee is $100. Application a credit services organization license must include the ms and sample agreements the broker will use with consumers. Maine Department of Professional and Financial Regulation Office of Consumer Credit Regulation 35 State House Station Augusta ME (207) (207) (fax) p/ccp_index.htm

21 MARYLAND MORTGAGE BROKER AND LOAN ORIGINATOR LICENSING Mortgage Lender, Law, Md. Fin. Inst. Code et seq. See also regulations of the Division of Financial Regulation (Code of Maryland Regulations), COMAR a fee or consideration, directly or indirectly aids or assists a borrower to obtain a loan if the person providing the assistance is not named as the lender in the loan agreement. (If the person arranging the loan is the payee of the loan, even in a tablefunded transaction, he is a lender, not a broker.) Originator Licensing and Rules N/A. Employees acting within the scope of their employment a person who is either licensed or exempt from licensing are not required to be individually licensed. An individual or sole proprietor applicant a broker license must have at least three years of business experience, documented by a current resume showing positions held, duties and responsibilities, and beginning and ending dates. From the Division of Financial Regulation s website, md.us/finance/mortga gel.htm#corp, visited 7/14/04. statutory requirements experience of applicants that are entities (corporations, partnerships, LLCs). Covered employees 31 must complete at least 20 hours 32 of continuing education in connection with their employer s license renewal. COMAR Yes; amount depends on whether the broker has done business in the previous 36 months: if not, $15,000. wise, bond depends on volume of business in Maryland, ranging from $25,000 (aggregate amount of all Maryland loans under $3MM) to $75,000 (more than $10MM in business in Maryland). 34 runs concurrently with license period., but financial statements dated within 12 months must be provided with license application. In-State Office Mortgage broker license is valid 2 years and expires on 12/31 of oddnumbered year following its issuance. Related Investigation fee filing license application = $100. fee = $1,000 if application license filed during evennumbered year; $500 otherwise. (Same fees branch offices.) renewal fee = $1,000. If the broker s principal place of business is outside Maryland, he must appoint an agent service of process in Maryland. All out-ofstate applicants must obtain a good standing certificate from Department of Taxation. Applicant license must provide fingerprints and criminal history records check (this applies to president, officer, director and principals of a corporate applicant). Branch offices are separately licensed. 35 Business credit report must be provided with license application (if a new business, personal credit report on president and 10% or greater shareholders). Willful violation of Mortgage Lender Law is a misdemeanor, subject to fine up to $5,000 and imprisonment up to 1 year or both. Unlicensed person cannot collect a brokerage fee, interest or costs on a loan. e must notify the regulator of changes of control, relocation of office, and similar. Department of Labor, Licensing and Regulation Division of Financial Regulation 500 rth Calvert Street Room 402 Baltimore MD (410) (410) (fax) 30 application can be filled out and submitted electronically through this webpage: 31 Branch manager and persons who accept loan applications or negotiate loan terms with borrowers are covered employees. However a "covered" employee does not include an employee who has been employed by the licensee less than six months bee the expiration of the licensee s current license, and has no prior experience as a covered employee with any other licensee (per the regulator s website, viewed 7/14/04). 32 The 20 hours must include at least the following: Ethics 2 hours; Federal Real Estate Settlement Procedures Act (RESPA) compliance 2 hours; Federal Truth in Lending compliance 2 hours; Federal Equal Credit Opportunity Act/Fair Lending compliance 2 hours; Maryland law update 2 hours; Federal law update 2 hours; Electives 8 hours. 33 There is a reduced continuing education requirement (6 hours) a person who was a covered employee with any licensee the immediately preceding 10 years, as follows: Ethics 2 hours; Maryland law update 2 hours; Federal law update 2 hours. 34 The bond applies to each office, but if 5 or more license applications or license renewals are filed simultaneously, a bond of $375,000 will cover all offices regardless of volume of Maryland business or number of offices. Md. Fin. Inst. Code The bond amount must be recalculated on 12/31 of each even-numbered year and licensee must provide a bond rider adjusting the amount if appropriate. COMAR However, bond multiple branches may be provided through a single blanket bond if licenses applied or renewed simultaneously. See column on surety bonds.