Alabama Mortgage Brokers are required to obtain a surety bond for licensure in the state.
The Alabama State Banking Department administers through the National Mortgage Licensing System, the licensing of Mortgage Brokers.
The Alabama Mortgage Brokers Licensing Act and the Alabama Secure and Fair Enforcement for Mortgage Licensing Act of 2009 (SAFE ACT) defines the requirements for the Alabama mortgage broker license.
The requirements for licensing include:
1. Completion of the required licensing documents through the NMLS - National Mortgage Licensing System and pay the applicable fee.
2. If a partnership, corporation or limited liability company, provide a certified copy of a corporate charter, articles of incorporation, articles of organization and operating agreement or partnership, whichever is applicable.
3. Provide resume’s for the previous 5 years for all owners, principals and executive officers.
4. A minimum $25,000 surety bond is required for licensure. The minimum surety bond amount is for an aggregate amount of originated or funded mortgage loans of not more than $25,000,000 during the prior calendar year. A $50,000 surety bond is required if the aggregate amount of originated or funded mortgage loans exceed $25,000,001 during the prior calendar year but are not more than $100,000,000. Aggregate loan amounts over $100,000,000 will require a $75,000 surety bond. Surety bonds must be renewed annually.
5. Businesses that are formed outside of Alabama, submit a Certificate of Existence issued by the Alabama Secretary of State.
6. If applicant answers "Yes" to any of the Disclosure Questions, provide complete details and any applicable documents .
7. Provide copies of driver licenses of all owners.
8. For each person with 10% or more ownership and the executive officer (if applicable), complete the Authorization for Background Check and Release.
9. Submit a credit report authorization for each control person and the executive officer.
10. Licenses must be renewed each year by December 31 through the NMLS.
The premium that you pay for an Alabama Mortgage Broker Surety Bond is based on credit and the bond amount required. If the bond amount is over $50,000, personal and/or business financial statements will be required.
An Alabama mortgage banker must have a business address that is neither a residence nor is zoned residential.
Our Surety Bond Specialists are ready to assist you with your bonding needs.
Hours: 8:00-5:00 CST, Monday through Friday