The Commonwealth of Kentucky, Department of Financial Institutions, Public Protection Cabinet, through the National Mortgage Licensing System, is tasked with the licensing of mortgage companies, mortgage brokers, master services and sub servicers.
The Kentucky Revised Statutes Chapter 286.8, defines the licensing of mortgage loan brokers, mortgage loan companies, and mortgage loan originators.
Mortgage Company license requirements are as follows:
1. Submit proof the pre-licensure education.
2. Complete the application through the NMLS system and pay the applicable filing fee, state fee, credit report fee, and FBI Criminal Background Check fee.
3. A credit report is required for each person of control for the business.
4. Provide an organizational chart indicating the structure of the company.
5. Provide formation documentation for applicants that are partnerships, corporations or limited liability companies.
6. Provide an audited financial statement prepared by a CPA, dated within 90 days of the business fiscal year end. Submitted financials must include a balance sheet, income statement, statement of cash flows and any relevant notes. Applicants must prove a minimum net worth of $1,000,000.
7. The Resident Agent or Registered Agent must match the name listed with the Secretary of State.
8. Indicate on the application any trade names or dba’s that will be used.
9. Provide a Certificate of Authority or a Good Standing Certificate issued by a Secretary of State.
10. If applicant answers Yes to any of the Disclosure Questions, provide complete details and any applicable documents.
11. A $250,000 surety bond is needed and is a requirement for licensure. The bond form will need to include the full legal name of the applicant and must match the name on the application.
The premium that you pay for a Kentucky Mortgage Company Bond is dependent on credit, and business and personal financial statements.
The State of Kentucky requires mortgage company licenses must be renewed by November 30 of each year and expire on December 31 of each year.