Latest Updates as to Commercial Mortgage Broker Licensing Requirements

[Don Konipol]

Commercial, non owner occupied residential and business purpose real estate mortgage loans are handled under state authority and jurisdiction.

Here’s the latest information 

37 states do NOT require licensure of any kind for brokering  commercial mortgage or residential investment mortgage loans 

5 states (Virginia, Utah, Oregon, Minnesota, and Idaho require licensure for brokering residential investment mortgage loans but not for brokering commercial mortgage loans.  Utah, Oregon and Idaho require a mortgage broker license; Virginia and Minnesota require a real estate broker license.

8 states (Arizona, California, Illinois, Michigan, North Dakota, New Jersey, Nevada and South Dakota require licensure for brokering both commercial mortgage and residential investment mortgage loans. Arizona, Nevada and South Dakota require a mortgage broker license. California, Michigan and New Jersey require a real estate broker license. Illinois require a loan broker license and North Dakota requires a money broker license.

Hope this helps 

[Chris Seveney]

Thanks for the update.

The other key thing i will add for lenders is to understand which states do and do not allow prepayment penalties