Many of us would like to work from home for many reasons - to save on rent, you like the short commute, or maybe you need to take care of your children. But are you allowed to work from home?
As with most of the questions that come up, the answer is it depends on the state in which you wish to originate or broker loans. Some states absolutely prohibit home offices. Other states permit home offices, so long as certain requirements are met. The usual requirement is that zoning laws permit home offices. If your local ordinance prohibits home offices, then your banking department will not permit you to have a home office. Some states allow a home office if it has a separate entrance and you maintain an office separate from the rest of your house.
If your state does allow home offices, remember that regardless of whether the office is the main office or just one person working from his house, that office location must be licensed. Also remember that anyone working from his home who is originating or brokering loans must be licensed as a loan originator.
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Showing posts with label mortgage lender licensing. Show all posts
Showing posts with label mortgage lender licensing. Show all posts
Tuesday, February 16, 2010
Friday, June 19, 2009
Out-of-Date Information
I have been helping mortgage lenders and brokers get their licenses for over 10 years. I’ve been blogging about licensing and compliance for about 2 years. Much of the information that I needed to know when I first starting working with mortgage companies is useless. Even some of the information that I published in my blog back in 2007 is now wrong.
The laws in the mortgage licensing area keep changing to keep up with events that are happening in our country to the financial industry. When I first started working in this area of law, there were a handful of states that did not require licensing at all. I’ve watched as all of the states passed laws to require the licensing of mortgage companies and then loan originators. Although there are some states now that do not require the licensing of loan originators, that will be a memory in about a year, when the federal SAFE Act becomes fully implemented.
If you are going to try to get yourself licensed without any help, you need to know that the information that you are relying upon is the most up-to-date out there. As I become aware of new legislation, new regulations and new compliance requirements, I write a blog entry about the changes so you can stay current. There are companies that you can subscribe to that will send updates to you when there are changes to the law in any state that yo uare interested in. Unfortunately, most of my clients don’t have time to read those updates or don’t understand them. Another way to get information is to read what is on the website of the regulatory agency that is in charge of mortgage lender, broker or loan originator licensing. The agencies go by different names in different states – they may be the Banking Department or the Department of Financial Institutions or the Commissioner of Banks. In California, it is the Department of Corporations (who would have guessed?). And sometimes, even after reading what’s on the website, I still call the agency and ask to speak to the reviewers in the licensing department. They can’t give legal advice (not that I’m asking for any advice) but they can tell me if the information on their website is current and answer questions about what is on their website or about an announcement about a change in their laws that I’ve received in the mail. You should do the same.
Always make sure that the information that you are working with is as up-to-date as it can be. If you are following a law that has been changed, you are not following the correct law and you could be subject to penalties and fines.
The laws in the mortgage licensing area keep changing to keep up with events that are happening in our country to the financial industry. When I first started working in this area of law, there were a handful of states that did not require licensing at all. I’ve watched as all of the states passed laws to require the licensing of mortgage companies and then loan originators. Although there are some states now that do not require the licensing of loan originators, that will be a memory in about a year, when the federal SAFE Act becomes fully implemented.
If you are going to try to get yourself licensed without any help, you need to know that the information that you are relying upon is the most up-to-date out there. As I become aware of new legislation, new regulations and new compliance requirements, I write a blog entry about the changes so you can stay current. There are companies that you can subscribe to that will send updates to you when there are changes to the law in any state that yo uare interested in. Unfortunately, most of my clients don’t have time to read those updates or don’t understand them. Another way to get information is to read what is on the website of the regulatory agency that is in charge of mortgage lender, broker or loan originator licensing. The agencies go by different names in different states – they may be the Banking Department or the Department of Financial Institutions or the Commissioner of Banks. In California, it is the Department of Corporations (who would have guessed?). And sometimes, even after reading what’s on the website, I still call the agency and ask to speak to the reviewers in the licensing department. They can’t give legal advice (not that I’m asking for any advice) but they can tell me if the information on their website is current and answer questions about what is on their website or about an announcement about a change in their laws that I’ve received in the mail. You should do the same.
Always make sure that the information that you are working with is as up-to-date as it can be. If you are following a law that has been changed, you are not following the correct law and you could be subject to penalties and fines.
Wednesday, October 8, 2008
Renewals on the NMLS
You should have received an email from the Nationwide Mortgage License System (NMLS) notifying you that the renewal season is about to start. If you live in a state that has transitioned onto the NMLS, you need to renew your license. For states whose license period was not the calendar year, this may seem strange. When you moved your licensing record onto the NMLS, you were advised that all licenses would, in the future, expire on December 31st. Renewal fees for some states were prorated to accommodate the change in renewal dates.
In order to renew all of the licenses that you have on the NMLS, you need to review your records to make sure that all of the information is accurate. You can start doing that as of October 13th. Even if there are no changes, you must attest that your records are accurate. Regardless of whether there are any changes, each state may require that you send in additional paperwork, such as financial statements, continuation certificates for surety bonds, or proof that continuing education requirements have been met. Those additional documents must be submitted to the licensing agency within 5 days of your renewing your license. To find out what additional documentation is required, you need to check the NMLS website here:
http://www.stateregulatoryregistry.org/AM/Template.cfm?Section=Renewals&Template=/CM/ContentDisplay.cfm&ContentID=17970
Don’t forget that, in those states that license individual loan officers, each loan officer must update his/her record and renew his/her license. After that is done, the company must finish up the loan officer renewal process. Renewal for the company cannot be completed until after loan officer licensing is finished.
Remember that all license renewals must be reviewed by the state banking departments so get your renewals done by December 1, 2008. If you wait, your license may expire before your renewal license is issued.
In order to renew all of the licenses that you have on the NMLS, you need to review your records to make sure that all of the information is accurate. You can start doing that as of October 13th. Even if there are no changes, you must attest that your records are accurate. Regardless of whether there are any changes, each state may require that you send in additional paperwork, such as financial statements, continuation certificates for surety bonds, or proof that continuing education requirements have been met. Those additional documents must be submitted to the licensing agency within 5 days of your renewing your license. To find out what additional documentation is required, you need to check the NMLS website here:
http://www.stateregulatoryregistry.org/AM/Template.cfm?Section=Renewals&Template=/CM/ContentDisplay.cfm&ContentID=17970
Don’t forget that, in those states that license individual loan officers, each loan officer must update his/her record and renew his/her license. After that is done, the company must finish up the loan officer renewal process. Renewal for the company cannot be completed until after loan officer licensing is finished.
Remember that all license renewals must be reviewed by the state banking departments so get your renewals done by December 1, 2008. If you wait, your license may expire before your renewal license is issued.
Tuesday, June 24, 2008
Alaska Joins the Licensing Club
The Alaska Mortgage Lending Regulation Act (AMLRA), AS 06.60, requires mortgage lenders, mortgage brokers, and originators operating in Alaska to become licensed, starting July 1, 2008. This new law does not permit anyone to be grandfathered so everyone who is doing mortgage lending or brokering in Alaska needs to get a license.
If you are already doing business as a lender or broker in Alaska (as evidenced by your current business license), you have until March 1, 2009 to get your license. But, if you want to start doing business in Alaska after June 30, 2008, you must be licensed.
The new law does not require a brick-and-mortar presence in Alaska so you can do all of your solicitation of business through the internet, mail, or telephone. Companies get a company license and loan officers each get their own licenses. Loan officers must undergo a background check, pass a test, and will be required to get 24 hours of continuing education every 2 years. A company owner who also originates loans must be licensed as an originator as well as getting the company license. The license fee for originators is $150.
The company must submit the license application, a $25,000 surety bond, and a $250 investigation fee and $500 license fee. All control persons of the mortgage company will have to undergo fingerprinting.
Applications are already available at the Alaska Banking Department website.
If you are already doing business as a lender or broker in Alaska (as evidenced by your current business license), you have until March 1, 2009 to get your license. But, if you want to start doing business in Alaska after June 30, 2008, you must be licensed.
The new law does not require a brick-and-mortar presence in Alaska so you can do all of your solicitation of business through the internet, mail, or telephone. Companies get a company license and loan officers each get their own licenses. Loan officers must undergo a background check, pass a test, and will be required to get 24 hours of continuing education every 2 years. A company owner who also originates loans must be licensed as an originator as well as getting the company license. The license fee for originators is $150.
The company must submit the license application, a $25,000 surety bond, and a $250 investigation fee and $500 license fee. All control persons of the mortgage company will have to undergo fingerprinting.
Applications are already available at the Alaska Banking Department website.
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