Commercial Mortgage Broker - License Required where you reside or work?

Question

Hello - I’m interested in brokering hard money loans on investment properties (non owner-occupied SFHs, multifamily, other commercial) but am residing in a state that requires a license.

Is a license required where you reside or where the property is? Does it matter where the lender is based as long as they meet the licensing within that state?

Would I be able to avoid a licensing requirement if I only do business in states where a license is not required? For example, residing in California but brokering hard money loans in Florida with no license?

Erik Estrada · Answer

Are they 1-4 Unit properties or 5+ Unit? If it's a commercial loan (5+Units) most states do not require any licensing. However for 1-4 Unit properties, it may be challenging since some states and lenders will require you to be licensed to do business purpose loans for 1-4 Unit property types. I would recommend just getting one. It will make your life easier since potential clients will be able to look you up on the NMLS website to verify you are a legit loan broker. You will also have an easier time getting signed up with wholesale lenders that may require you to be licensed to do loans with them.

Chris Seveney · Answer

@Jordan Niemann

Not legal advice

My understanding is if the state the loan is in does not require a license then you would not require one.

Commercial Mortgage Broker - License Required where you reside or work?

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