License Renewals

Only a few states, i.e., New York, Virginia, and California, issue mortgage broker and mortgage lender licenses that never expire. The vast majority of the states issue licenses that expire every year. The rest of the states have licenses that are renewed every 2 years.

The Banking Department (or whatever they call it in each state) will send out a renewal application about 2-3 months in advance of the expiration date of the license. More and more, the renewal is done online and the information is inputted. Some of the smaller states have very streamlined renewal procedures. They just require that you notify them of any changes since the previous year. The more time-consuming ones need to include updated surety bonds, Certificates of Good Standing, and proof that continuing education was completed. It takes several weeks to get all of the documentation together so you have to be very organized and keep on top of each requirement to ensure that you can send in a complete renewal application.

What should you do if the renewal license application isn't complete and the deadline is drawing near? I send in whatever I have and forward any missing documentation as I receive it. I have found that most states will grant some leeway if the renewal application is in their office. At least then they know you are trying to renew your license. If you have missed the deadline because you are still waiting for one last piece of paper, the Banking Department will not let you continue to broker or originate loans and will assess fines for a late filing.

Most of the Banking Departments take several weeks past the expiration date of your license to process all of the renewal applications. They know that lenders may not let brokers close loans if the new license has not been issued. The Banking Departments will usually confirm with the lenders that a renewal license is pending and that the Department is allowing the broker to cintinue to close loans while the application is being processed.

What if you have decided that you do not wish to renew your license in a particular state? Check that state's requirements. Some states merely let the license lapse on its expiration date and no further action is necessary. Other states require you to let them know that you are not renewing and you must comply with that instruction. You never know when you might change your mind and want to re-apply.