The Commonwealth of Massachusetts, Consumer Affairs and Business Regulation, Division of Banks, through the National Mortgage Licensing System (NMLS), is tasked with the licensing of mortgage lenders, mortgage brokers, and mortgage loan originators.
The Code of Massachusetts Regulation 42.03, defines the licensing of mortgage lenders and mortgage brokers.
Mortgage Broker license requirements include:
1. Complete education and pass the examination and must have a minimum of five years full-time mortgage loan experience or the equivalent in part-time experience.
2. Complete the application through the NMLS system and pay the applicable filing fee, license fee, credit report fee, Massachusetts investigation fee and Criminal Background Check fee.
3. Complete the primary and non-primary contact employee information.
4. A credit report is required for each person of control for the business (control persons of publicly traded companies of publicly traded companies are not required to provide personal credit reports).
5. Complete the authorization for FBI criminal background check for all individuals listed on the company form.
6. Complete the Control Person Attestation for any person directly or indirectly that owns 25% or more interest of the company.
7. Provide formation documentation for applicants that are partnerships, corporations, or limited liability companies.
8. The Resident Agent or Registered Agent must be completed on the application.
9. Provide a Business Plan, Management Chart and Organizational Chart.
10. Provide an audited financial statement prepared and signed by a Certified Public Accountant, 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. If applicant is a new business, an initial audited or reviewed balance sheet is required. Applicants must have a minimum net worth of $25,000.
11. Provide information as to where records will be kept and the types of software used in the Business Address field of the application under the Books & Records Comment Section.
12. Indicate on the application any trade names or dba’s that will be used. DBA’s and trade names must be registered with the applicable municipality of government agency. If more than one dba or trade name is used (up to eight), a separate mortgage license must be applied for each.
13. Obtain a certificate of Authority or Good Standing Certificate from the Office of the Secretary of State of the Commonwealth of Massachusetts.
14. A $75,000 surety bond is required for the license. After purchasing your bond, the surety will upload the bond directly into the NMLS ESB system.
15. List the qualifying individual of the business which can be an on-site manager or branch manager. If more than one branch the main address is to be used for the qualifying individual.
16. If applicant answers Yes to any of the Disclosure Questions, provide complete details and provide any applicable documents.
17. Provide two years parent financials (if applicable) and submit directly to the Massachusetts Division of Banks.
18. Provide a W-9 obtained from the IRS. Do not use a personal social security number on the W-9. Submit directly to the Massachusetts Division of Banks.
19. Provide third party evidence of experience for persons in control of the business to prove three years of continuous full time mortgage business experience or part-time equivalent of three years. Submit directly to the Massachusetts Division of Banks.
20. For any negative or derogatory credit remarks, provide a letter of explanation if applicable. Submit directly to the Massachusetts Division of Banks.
The premium that you pay for a Massachusetts Mortgage Broker Surety Bond is dependent on credit and personal and/or business financial statements.
The Commonwealth of Massachusetts requires that mortgage broker licenses must be renewed by December 31 of each year.