Mortgage broker regulations vary widely from state
to state. Some impose significant educational requirements, others
demand proof of sound financial footing. Five states impose no regulations
at all. Others call mortgage brokers by different names, or exempt
those that deal in first mortgages, or license offices but not individuals.
Here are the highlights of each state.
| STATE |
REGULATOR (linked to Web site, where available)
|
CONSUMER HOTLINE
|
NUMBER OF LICENSED BROKERS
|
SELECTED REQUIREMENTS
|
| Alabama |
State Banking Department
|
1-334-242-3452
|
Alabama issues a consumer credit license, but does not specifically
regulate mortgage brokers.
|
No specific educational or experience requirements.
|
| Alaska |
Dept.
of Commerce and Economic Development, Division of Banking,
Securities and Corporation
|
1-907-465-2521
|
None. Alaska licenses small loan companies, but not individual
mortgage brokers.
|
No specific education or experience requirements.
|
| Arizona |
State
Banking Department
|
1-602-255-4421 ext. 118
|
Approximately 627 mortgage brokers.
|
Required to maintain a surety for $10,000 to $15,000. Must
have three years of experience in lending and pass a written
exam.
|
| Arkansas |
Securities
Department
|
1-501-324-9260
|
Approximately 222 licensed mortgage loan brokers and companies;
plus about 540 more that have filed proof that they're exempt
from licensing.
|
Required to maintain a net worth of $25,000. No specific education
or experience required.
|
| California |
Department
of Real Estate; Department
of Corporations
|
1-916-227-0782;
1-213-736-2741
|
300,000 real estate brokers who may engage
in mortgage broker activities; 191 mortgage lenders.
|
Licensees aren't subject to specific financial
requirements; brokers and lenders must each meet educational
requirements and pass exams. You may check the license and
disciplinary status of individual real estate brokers through
the state's online
database.
|
| Colorado |
Department
of Law, Uniform
Consumer Credit Code Unit
|
1-303-866-4494
|
Not available
|
No specific education or experience requirements.
|
| Connecticut |
Consumer
Credit Division
|
1-860-240-8299
|
Approximately 1,436 licensed first mortgage lenders/brokers.
|
Required to maintain a surety bond for $40,000. No specific
education or experience requirements.
|
| Delaware |
Office
of the State Bank Commissioner
|
1-302-739-4235
|
Approximately 569 brokers.
|
Mortgage brokers must maintain a bond of $25,000. No specific
education or experience requirements.
|
| District
of Columbia |
Office of Banking and Financial Institution
|
1-202-727-1563
|
Not available
|
Began licensing mortgage brokers in 1997. Brokers are required
to maintain a surety bond ranging from $12,500 to $50,000.
No specific education or experience requirements.
|
| Florida |
Office
of the Comptroller, Department of Banking and Finance
|
1-850-410-9895
|
Approximately 20,000 mortgage brokers.
|
State issues four types of mortgage broker/lender licenses;
mortgage broker is by far the most common. Mortgage brokers
are not subject to any specific financial requirements. Applicants
for a broker's license must pass a written test.
|
| Georgia |
Department
of Banking and Finance
|
1-770-986-2812
|
Approximately 2,750 mortgage brokers or lenders are licensed
or registered.
|
Mortgage brokers are required to maintain a net worth of $25,000
or surety bond for $50,000. No specific education or experience
requirements.
|
| Hawaii |
Department
of Commerce and Consumer Affairs
|
1-808-587-3222
|
Not available
|
Maintain a surety bond for $50,000. Mortgage brokers have
no specific education or experience requirements; designated
principal mortgage solicitors must have two years experience.
|
| Idaho |
Department
Of Finance
|
1-208-332-8004
|
Approximately 391 licensed mortgage brokers and 663 licensed
mortgage lenders.
|
A surety bond for $10,000 for home office and additional $10,000
for each office outside of Idaho. Applicants for mortgage
banker/broker license must have three years experience in
residential mortgage lending.
|
| Illinois |
Office
of Banks and Real Estate
|
1-312-793-3000
|
Approximately 1,000 brokers.
|
Mortgage brokers must maintain a fidelity bond for $100,000
and surety bond for $20,000. Licensees must pass a test or
have three years experience in real estate financing.
|
| Indiana |
Secretary
of State, Securities Division
Department
of Financial Institutions
|
1-317-232-6684 (first mortgages)
1-317-232-3955 (second mortgages)
|
Not available
|
Registered loan brokers are required to post a $25,000 bond.
No specific education or experience requirements. The state
makes available an online
complaint form.
|
| Iowa |
Division of Banking
|
1-515-281-4014
|
Approximately 415 mortgage brokers and lenders.
|
Must maintain a surety bond for $15,000. No specific education
or experience requirements.
|
| Kansas |
Office
of the State Bank Commissioner
|
1-785-296-2266
|
Approximately 400 licensed mortgage brokers.
|
Mortgage brokers are not required to meet any specific requirements.
|
| Kentucky |
Department
of Financial Institutions
|
1-502-573-3390
|
Approximately 180 licensed mortgage loan brokers, 160 licensed
mortgage loan companies.
|
Must maintain a surety bond for $50,000. Applicants for a
mortgage loan broker license must complete a 30-hour training
course.
|
| Louisiana |
Office
of Financial Institutions
|
1-225-925-4660
|
Approximately 259 licensed loan brokers.
|
Must maintain a surety bond for $25,000. No specific education
or experience requirements.
|
| Maine |
Office
of Consumer Credit Regulation
|
1-207-624-8527
|
Approximately 350 brokers.
|
Registered credit services organizations, which include loan
brokers, must maintain a bond in the amount of $10,000. No
specific education or experience requirements.
|
| Maryland |
Division
of Financial Regulations
|
(410) 333-6830
|
Approximately 1,843 mortgage brokers and lenders.
|
Mortgage lenders are required to maintain a surety bond ranging
from $15,000 to $75,000. Mortgage lenders must have three
years experience.
|
| Massachusetts |
Division
of Banks, Consumer Compliance Unit
|
1-617-956-1500, ext. 501
|
Approximately 434 mortgage brokers.
|
Mortgage brokers must demonstrate financial responsibility
but aren't required any specific requirements. Brokers must
show a year's experience in the field; related course work
can trim the experience requirement.
|
| Michigan |
Financial
Institutions Bureau
|
1-517-73-3460
|
Approximately 1,380 licensed mortgage brokers, lenders and
servicers.
|
Mortgage brokers are required to maintain a net worth of $25,000
and a bond for $25,000. No specific education or experience
requirements.
|
| Minnesota |
Department of Commerce
|
1-651-296-2488
|
Not available
|
As of Aug. 1, 1999, the state created two new licenses --
"residential mortgage originators" and "residential mortgage
servicers."
|
| Mississippi |
Department
of Banking and Consumer Finance
|
1-601-359-1350
|
Mississippi doesn't license mortgage brokers. Through its
Consumer Loan Broker Act, it does impose some modest regulation.
|
Brokers are not required to meet any specific regulations.
|
| Missouri |
Division
of Finance
|
1-573-751-3242
|
Approximately 436 mortgage brokers.
|
Mortgage brokers are required to maintain a net worth of $25,000
and a surety bond for $20,000. No specific educational or
experience requirements.
|
| Montana |
Department
of Commerce, Division of Banking and Financial Institutions
|
1-(406) 444-2091
|
Not available
|
Lenders for first mortgages are not required to obtain a license;
nor are they subject to any financial, educational or experience
requirements.
|
| Nebraska |
Department
of Banking and Finance
|
1-402-471-2171
|
Approximately 326 licensed mortgage lenders.
|
No specific educational or experience requirements.
|
| Nevada |
Department
of Business and Industry, Financial Institutions Division
|
1-702-687-4259
|
Not available
|
No financial requirements; applicants for a mortgage company
license must employ someone with accounting and at least two
years mortgage-lending experience.
|
| New
Hampshire |
Banking
Department
|
1-603-271-3561
|
Approximately 300 mortgage brokers.
|
First-mortgage brokers must maintain a surety bond for $20,000.
No specific educational or experience requirements.
|
| New
Jersey |
Department
of Banking and Insurance
|
1-609-984-2777
|
Approximately 1,600 mortgage brokers.
|
Brokers are required to have a net worth of $50,000 and a
bond for $50,000.
|
| New
Mexico |
Regulations
and Licensing Department, Financial Institutions Division
|
1-505-827-7100
|
Approximately 800 mortgage loan companies and brokers.
|
Must maintain a $25,000 surety bond. No specific educational
or experience requirements.
|
| New
York |
Banking
Department
|
1-212-618-6681
|
Approximately 1,700 first-mortgage brokers.
|
Mortgage brokers may be asked to post a $25,000 bond. No specific
educational or experience requirements.
|
| North
Carolina |
Office
of the Commissioner of Banks
|
1-919-733-3016
|
Approximately 579 mortgage brokers.
|
Must maintain a $25,000 surety bond. No specific educational
or experience requirements.
|
| North
Dakota |
Department Of Banking and Financial Institutions
|
1-701-328-9935
|
Approximately 165 mortgage lenders and brokers.
|
Must maintain a surety bond for $25,000. No specific educational
or experience requirements.
|
| Ohio |
Department
Of Commerce, Division of Financial Institutions
|
1-614-644-9574
|
Approximately 918 mortgage brokers.
|
Mortgage brokers must maintain a net worth of $25,000 and
have an associate's degree in finance, banking or business
administration; or three years experience in financial services.
|
| Oklahoma |
Department
of Consumer Credit
|
1-800-448-4904
|
Approximately 213 loan brokers.
|
Brokers must have two years continuous experience in the residential
mortgage loan industry, real estate sales or lending industry.
Also, they must have a trust account in a federally insured
bank in Oklahoma.
|
| Oregon |
Department
of Consumer and Business Services, Division of Finance and
Corporate Securities
|
1-503-378-4140
|
Approximately 1,500 mortgage lenders.
|
Licensed mortgage brokers required to maintain a surety bond
for $10,000
|
| Pennsylvania |
Department
of Banking
|
1-717-787-1854
|
Approximately 1,361 first-mortgage brokers and 733 secondary-mortgage
brokers.
|
First-mortgage brokers must maintain a bond for $100,000.
No specific educational or experience requirements.
|
| Puerto
Rico |
Office
of the Commissioner of Financial Institutions
|
1-787-723-3131,ext. 2341
|
Approximately 178 licensed mortgage institutions and intermediaries.
|
Mortgage brokers must have five years experience in the industry,
or a college degree and two years experience.
|
| Rhode
Island |
Department
of Business Regulations, Division of Banking
|
1-401-222-2405
|
Approximately 800 licensed loan brokers and lenders.
|
Licensed brokers must have a net worth of $10,000 and post
a $10,000 bond, plus $5,000 for each additional office. No
specific educational or experience requirements.
|
| South
Carolina |
Department
of Consumer Affairs
|
1-803-734-9452, ext. 134. The department will accept faxed
requests only to 1-803-736-9365
|
Approximately 320 mortgage loan brokers.
|
Must maintain a surety bond for $10,000. To obtain a license,
brokers must have worked for two years as a loan originator,
or one year of experience if educational standards are met.
Eight hours of continuing education each year required.
|
| South
Dakota |
Division of Banking
|
1-605-773-3421
|
Not available
|
No minimum financial requirements, no specific educational
or experience requirements.
|
| Tennessee |
Department
of Financial Institutions
|
1-615-741-8186
|
Approximately 1,069 mortgage companies.
|
Mortgage lenders and loan brokers must maintain a net worth
of $25,000 and a surety bond for $25,000. No specific educational
or experience requirements.
|
| Texas |
Savings and Loan Department
|
1-512-475-1350
|
None
|
Mortgage brokers are not required to be licensed until Jan.
1, 2000
|
| Utah |
Department
of Financial Institutions
|
1-801-538-8830
|
Approximately 2,000 residential mortgage brokers, lenders
and servicers.
|
No minimum financial requirements, no specific educational
or experience requirements.
|
| Vermont |
Department of Banking, Insurance, Securities & Health
Care Admin.
|
1-802-828-3307
|
Approximately 400 mortgage brokers and lenders.
|
Brokers must maintain a bond for $10,000. No specific educational
or experience requirements.
|
| Virginia |
State Corporation Commission, Bureau
of Financial Institutions
|
1-804-371-9657
or 1-800-552-7945
|
Approximately 820 mortgage brokers and lenders.
|
Brokers must maintain a surety bond for $5,000. Some experience
in mortgage banking is required.
|
| Washington |
Department
of Financial Institutions, Division of Consumer Services
|
1-360-902-8703
|
Not available
|
Mortgage brokers must maintain a surety bond for $20,000 to
$60,000. Applicants must pass an exam or demonstrate two years
experience in the field. Licensees must fulfill yearly continuing
education requirements.
|
| West
Virginia |
Division
of Banking
|
1-304-558-2294
|
Approximately 110 licensed secondary mortgage lenders and
brokers.
|
Must maintain a net worth of $10,000 and a bond for $25,000.
No specific educational or experience requirements.
|
| Wisconsin |
Department of Financial Institutions
|
1-608-267-3332
|
Approximately 5,161 loan solicitors and 5,118 loan originators.
|
Loan companies must maintain a net worth of $50,000, but no
specific financial, educational or experience requirements
are applied to individuals.
|
| Wyoming |
Division
of Banking
|
1-307-777-7797
|
Not available; Wyoming does not regulate first mortgage lenders
except under extraordinary conditions -- such as when they
issue a mortgage with an interest rate of greater than 18%.
|
No minimum financial requirements, no specific educational
or experience requirements.
|
|
SOURCE: 1999 State & Federal Mortgage
Banking Regulators Guide, by Robert S. Lotstein. Published
by Mortgage Press, Ltd.; additional research by Julie Bandy,
Dani Arthur and Naomi Gaff of Bankrate.com
|
