The State of Arkansas Securities Department administers through the National Mortgage Licensing System, the licensing of mortgage brokers, mortgage servicers and mortgage bankers.
The Arkansas Rules of the Fair Mortgage Lending Act defines the requirements for a mortgage broker license, a mortgage servicer license or mortgage banker license.
The requirements for licensing include:
1. Completion of the required licensing documents through the National Mortgage Licensing System (NMLS) and pay the applicable fee.
2. Obtain a Certificate of Authority/Good Standing Certificate issued through the Secretary of State and upload into the NMLS system.
3. Obtain a $100,000 surety bond. The name of the principal must match the full legal name of the applicant including any DBA or Trade Name. A $150,000 is required if the aggregate amount of originated or funded mortgage loans that are secured by real property exceed $10,000,000 but not more than $25,000,000 during the prior calendar year. A $200,000 bond is required if the aggregate amount of originated or funded mortgage loans that are secured by real property exceed $25,000,000 during the prior calendar year. Bond increases must be completed by March 31st of each year. Bonds must be renewed annually.
4. Businesses that are partnerships, corporations, limited liability companies must submit a formation documentation such as partnership agreements, articles of incorporation or an operating agreement. If the applicant business was formed outside of Arkansas, submit proof of authorization to do business.
5. Submit audited financial statements prepared by a CPA-if an established business, balance sheet, income statement, statement of changes in Shareholder Equity, Statement of Cash Flows and any relevant notes, and dated within fifteen months from the date of the application. If a new entity, submit an initial balance sheet.
6. If applicant is using a DBA or Trade Name, provide a copy of the Registration of Fictitious Name from the Arkansas Secretary of State.
7. If applicant answers Yes to any of the Disclosure Questions, provide complete details and any applicable documents.
8. Mortgage banker licenses must be renewed each year by December 31st through the NMLS.
9. Applicants can apply for a combination of mortgage broker, mortgage banker and/or mortgage servicer license
Premium for an Arkansas mortgage banker license bond is based on credit and personal financials.
Arkansas does not require a brick and mortar building in the state. Get more Arkansas Mortgage FAQs here.
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