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Alabama Requires Mortgage Brokers To Have A License And A Bond

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Alabama Mortgage Brokers are required to obtain a surety bond for licensure in the state.

The State of Alabama (AL) 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 (http://mortgage.nationwidelicensingsystem.org/Pages/default.aspx) 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. Obtain a minimum $25,000 surety bond 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 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. 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 31st through the NMLS.

Premiums for Alabama mortgage broker license bonds are based on credit and personal financials.

Did you know?

An Alabama mortgage banker must have a business address that is neither a residence nor is zoned residential.

Information:

Download: State of Alabama Zoning Attestation (http://mortgage.nationwidelicensingsystem.org/slr/StateForms/AL4-Zoning-Attestation.pdf)
NMLS Application Portal (http://fedregistry.nationwidelicensingsystem.org/Pages/default.aspx)
Information:
State of Alabama: New Applicant Compliance (http://mortgage.nationwidelicensingsystem.org/slr/StateForms/AL5-Surety-Bond-Requirements.pdf)
Forms:
Criminal History Information Release Form (http://mortgage.nationwidelicensingsystem.org/slr/StateForms/AL2-Dept-of-Public-Safety-Release-Form.pdf)
NMLS - Alabama Mortgage Broker License Instructions (http://mortgage.nationwidelicensingsystem.org/slr/PublishedStateDocuments/AL-Mtg-Broker-New-App-Checklist.pdf)
Laws
Alabama Mortgage Licensing Act (http://alisondb.legislature.state.al.us/alison/CodeOfAlabama/1975/161711.htm)
Alabama Mortgage Broker Licensing Act (http://alisondb.legislature.state.al.us/alison/CodeOfAlabama/1975/153643.htm)

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