The State of Louisiana, Office of Financial Institutions, through the National Mortgage Licensing System, is tasked with the licensing of the residential mortgage industry including mortgage lenders, mortgage brokers, wholesale mortgage lenders, mortgage originators and mortgage processors.
The Louisiana Revised Statutes Title 6, Chapter 14 Part 1, defines the licensing of residential mortgage brokers and mortgage lenders.
1. Complete education and pass the examination.
2. Complete the application through the NMLS system and pay the applicable filing fee, credit report fee, and FBI Criminal Background Check fee.
3. Each direct owner, executive officer, indirect owner is required to authorize an FBI criminal background check and must submit fingerprint cards.
4. A credit report authorization is required for each person of control for the business.
5. Provide an organizational chart indicating the structure of the company.
6. Provide formation documentation for applicants that are partnerships, corporations, or limited liability companies.
7. Provide a copy of the mortgage loan origination agreement.
8. Complete the Employer Coverage Affidavit if applicable, if residential mortgage loan originators will be employed.
9. Provide verification of the warehouse line of credit.
10. Indicate on the application any trade names or dba’s that will be used.
11. Provide a copy of a Certificate of Corporate Resolution for each person that will have the authority to act on behalf of the licensee for any issue that must be addressed by the Office of Financial Institutions.
12. Provide a copy of the applicant’s promissory note for each type of loan to be written.
13. A minimum $25,000 surety bond is required for total loans under $99,999,999 originated in the previous calendar year. Obtain a $50,000 for total loans over $100,000,000 originated in the previous calendar year. The bond form must include the full legal name and must match the name of the applicant. Instead of a bond, a certificate of deposit of equal amount to the bond may be filed with the state.
The premium that you pay for a Louisiana Residential Mortgage Lending Bond is dependent on credit and the bond amount required.
The State of Louisiana requires each residential mortgage branch location must be separately authorized.