The Commonwealth of Massachusetts, Consumer Affairs and Business Regulation, Division of Banks, through the National Mortgage Licensing System, 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.
The Mortgage Lender license requirements are as follows:
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 balance sheet is required. Applicants must have a minimum net worth of $200,000.
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. Provide bank account information including any personal lines of credit.
13. 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.
14. Obtain a certificate of Authority or Good Standing Certificate from the Office of the Secretary of State of the Commonwealth of Massachusetts.
15. Obtain a surety bond from SuretyGroup.com based on the volume of closed loans for the previous 12 months.
|Aggregate of Total Annual Loans Closed||Minimum Bond Amount|
|$250,000,000 or more||$500,000|
|$250,000,000 - $249,999,999||$250,000|
|Up to $49,999,999||$100,000|
The premium that you pay for a Massachusetts Mortgage Lender Bond is dependent on credit, the bond amount, and/or personal and business financial statements.
The Commonwealth of Massachusetts requires mortgage lender licenses must be renewed by December 31 of each year.