If you want to become a mortgage broker in New York you need to get a mortgage broker license. The New York Department of Financial Services (DFS) is responsible for overseeing the licensing process. They establish various requirements brokers must fulfill before they can receive a license.
In this guide, we’ll outline all the licensing requirements and give you a step-by-step process for getting your mortgage broker license in New York.
Who needs a mortgage broker license in New York?
Before you apply for a mortgage broker license, you need to determine which broker license is appropriate for your business. There are numerous licenses for financial professionals in the State of New York. Among these are several licenses for mortgage-related business.
Licensing for mortgaging activities is done through the Nationwide Mortgage Licensing System (NMLS). Below are the most common types of mortgage company licenses in New York:
- Mortgage Broker License: This license lets companies accept, solicit, process, or negotiate mortgage loans on behalf of third-party home buyers.
- Mortgage Banker License: This license lets companies issue commitments and advance funds to issue mortgage loans.
- Mortgage Loan Servicer Registration License: This license lets companies receive loan payments from borrowers as well as make payments to borrowers for mortgage conversions.
- Mortgage Loan Originator (MLO) License: This license lets individuals engage in mortgage loan origination activities
Mortgage brokers must have at least two years of credit analysis or underwriting experience to be eligible for a mortgage broker license.
Process of getting a New York mortgage broker license
Step 1: Register your business
Before you apply for your mortgage broker license, you must register your business with the New York Department of State, Division of Corporations. You can file all the necessary paperwork online through the DOS website.
If your business is a limited liability company (LLC), partnership, or corporation you will need a Federal Employee Identification Number from the Internal Revenue Service to complete the process.
Step 2: Get a surety bond
Mortgage brokers are required to post a New York surety bond as part of the licensing process. The bonds serve as a guarantee that the licensed broker will comply with all license regulations. They also protect the state in the event the mortgage broker becomes insolvent.
The required bond amount for New York mortgage broker bonds is $10,000. You only need to pay a small percentage of this total amount as a premium, typically between 1% and 5%. When the surety company issues your bond they will determine your premium based on your experience, credit history, and financial standing.
Step 3: Submit fingerprints
All control persons in your mortgage brokerage business must submit fingerprints to the DFS. You can learn more about the fingerprinting process and requirements on the DFS website.
Step 6: Complete license application
After you have met all the requirements, you are ready to complete the mortgage broker license application. You can find the application checklist on the NMLS website. You will have to provide the following documents when submitting your application:
- Company Form (MU1)
- Credit report
- Business plan
- Formation documents
- Surety bond form
- Certificate of Authority issued by the Secretary of State
You will need to pay the following fees when submitting your mortgage broker license application:
- $100 NMLS processing fee
- $1,500 investigation fee
- $15 credit report fee
Once you have gathered everything you need, you can mail the application packet to the New York DFS at the following address:
New York State Department of Financial Services
Attention: Mortgage Banking
Application Processing Unit
One State Street
New York, NY 10004
New York mortgage broker license frequently asked questions
How much does it cost to get a mortgage broker license in NY?
New York mortgage brokers must pay $1,615 in fees to receive their license. This includes an initial processing fee, an investigation fee, and a credit report fee.
Mortgage brokers must also purchase a surety bond, which can cost as low as $100.
Who licenses mortgage brokers in NY?
The Department of Financial Services handles licensing for mortgage brokers in New York. They process applications through the Nationwide Mortgage Licensing System.
How EZ Surety Bonds can help with a New York mortgage broker license
These are all the steps needed to become a licensed mortgage broker in New York. When you’re ready to start the licensing process, EZ Surety can offer you a free online quote for your New York mortgage broker bond.
We provide competitive premiums and quick turnarounds for dealers of all experience levels and financial standings. Apply online today or get in touch today to learn more.