Changing Your Address, Name, Owners, Control Person

There are a thousand things to do when you move your offices, change your company’s name, add new owners or when your control person (the person who has the day-to-day operations responsibilities or have the necessary number of years in the mortgage industry for your company to keep its license) leaves. Don’t forget to notify the state agency who regulates your license.

Nowadays, before you have any type of change to your company, you must start with notifying your state regulator in advance of the change by making changes through the Nationwide Mortgage License System (NMLS). You need to update your MU1 company record. Most states require a change of address fee to be paid when you notify them of your move. If your company has moved, all of your loan originators need to change their MU4 records to show their current employment address. If you have FHA approval, you need to change your address in the FHA Connection. Many states require that, in addition to making changes to your NMLS record, you submit a copy of your new lease.

When you change owners and control, most states treat you almost as a new applicant for a license. You are allowed to close all of the loans in your pipeline, but you are not allowed to solicit new business until the state regulators have approved the change of control. The change of control application process is fairly similar to the new application process – the new controlling shareholder or member must submit all of the information that the original owner initially submitted on the NMLS (MU1 and MU2) and also submit fingerprints, legal documents evidencing the change of control, personal financials and credit reports, resume, and must answer disclosure questions regarding criminal convictions, bankruptcies, regulatory problems, and litigation.

Of course, there are fees to be paid to the state regulators for each change that you notify them of, which vary by state.

Make sure you plan to notify your state regulators on a timely basis. Most states have laws or regulation on how much notice you must provide to the state. Failure to notify the regulators of these changes can leave you open to penalties, fines, and regulatory action.

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