COMMERCIAL Mortgage Broker Licensing Requirements by State
Don KonipolBusiness Member
Investor 路 The Woodlands TX / Avon, CT 路 Member since 2009 路 6k+ posts 路 10k+ votesCOMMERCIAL Mortgage Broker Licensing Requirements by State
Most Popular Reply
Jay HinrichsBusiness Member
Real Estate Consultant 路 Summerlin, NV 路 Member since 2014 路 45k+ posts 路 66k+ votesQuote from @Don Konipol:
There has always been many questions as to if one needs to be licensed to engage in COMMERCIAL mortgage brokering/origination or RESIDENTIAL INVESTMENT property mortgages. Here is a list of states divided into three categories, based on my internet research. If you have any corrections to make please let us know.
States which DO NOT require licensing for originating or negotiating a loan secured by commercial real estate nor a loan secured by non owner occupied residential real estate
ALASKA
ARKANSAS
COLORADO
CONNECTICUT
DC
DELAWARE
FLORIDA
GEORGIA
HAWAII
IOWA
INDIANA
KANSAS
KENTUCKY
INDIANA
KANSAS
LOUISIANA
MASS
MARYLAND
MAINE
MISSOURI
MISSISSIPPI
MONTANA
NORTH CAROLINA
NEBRASKA
NEW HAMPSHIRE
NEW MEXICO
OHIO
OKLAHOMA
PENNSYLVANIA
RHODE ISLAND
SOUTH CAROLINA
TENNESSEE
TEXAS
WASHINGTON
WISCONSIN
WEST VIRGINIA
States which DO NOT require licensing for originating or negotiating a loan secured by commercial real estate but DO require licensing for a loan secured by non owner occupied residential real estate
IDAHO
MINNESOTA
OREGON
UTAH
VIRGINIA
States that DO require licensing for both residential and commercial real estate loan origination and brokering
ARIZONA
CALIFORNIA
ILLINOIS
MICHIGAN
NEW YORK
NORTH DAKOTA
NEW JERSEY
NEVADA
SOUTH DAKOTA
Good list Don.
One thing I notice is so many lenders say they are located in Las Vegas. And a quick search U find they have no license so you know they are fakes without going any further..
Will Add in CA there are 3 ways to do the Private loans.. CA RE Broker ( which I have) standard state MLO and NMLS and Consumer finance license.
22 Replies
- Real Estate Consultant 路 [email protected] 路 Member since 2024 路 51 posts 路 10 votes2y
Thanks, Don, for taking the time to put this together. Great insight!
- 2yJay HinrichsBusiness MemberReal Estate Consultant 路 Summerlin, NV 路 Member since 2014 路 45k+ posts 路 66k+ votes
Quote from @Don Konipol:
There has always been many questions as to if one needs to be licensed to engage in COMMERCIAL mortgage brokering/origination or RESIDENTIAL INVESTMENT property mortgages. Here is a list of states divided into three categories, based on my internet research. If you have any corrections to make please let us know.
States which DO NOT require licensing for originating or negotiating a loan secured by commercial real estate nor a loan secured by non owner occupied residential real estate
ALASKA
ARKANSAS
COLORADO
CONNECTICUT
DC
DELAWARE
FLORIDA
GEORGIA
HAWAII
IOWA
INDIANA
KANSAS
KENTUCKY
INDIANA
KANSAS
LOUISIANAMASS
MARYLAND
MAINE
MISSOURI
MISSISSIPPI
MONTANA
NORTH CAROLINA
NEBRASKA
NEW HAMPSHIRE
NEW MEXICO
OHIO
OKLAHOMA
PENNSYLVANIA
RHODE ISLAND
SOUTH CAROLINA
TENNESSEE
TEXAS
WASHINGTON
WISCONSIN
WEST VIRGINIA
States which DO NOT require licensing for originating or negotiating a loan secured by commercial real estate but DO require licensing for a loan secured by non owner occupied residential real estate
IDAHO
MINNESOTA
OREGON
UTAH
VIRGINIA
States that DO require licensing for both residential and commercial real estate loan origination and brokeringARIZONA
CALIFORNIA
ILLINOIS
MICHIGAN
NEW YORK
NORTH DAKOTA
NEW JERSEY
NEVADA
SOUTH DAKOTA
Good list Don.
One thing I notice is so many lenders say they are located in Las Vegas. And a quick search U find they have no license so you know they are fakes without going any further..
Will Add in CA there are 3 ways to do the Private loans.. CA RE Broker ( which I have) standard state MLO and NMLS and Consumer finance license. - Investor 路 Campton, NH 路 Member since 2010 路 287 posts 路 144 votes2y
Quote from @Don Konipol:
There has always been many questions as to if one needs to be licensed to engage in COMMERCIAL mortgage brokering/origination or RESIDENTIAL INVESTMENT property mortgages. Here is a list of states divided into three categories, based on my internet research. If you have any corrections to make please let us know.
States which DO NOT require licensing for originating or negotiating a loan secured by commercial real estate nor a loan secured by non owner occupied residential real estate
ALASKA
ARKANSAS
COLORADO
CONNECTICUT
DC
DELAWARE
FLORIDA
GEORGIA
HAWAII
IOWA
INDIANA
KANSAS
KENTUCKY
INDIANA
KANSAS
LOUISIANAMASS
MARYLAND
MAINE
MISSOURI
MISSISSIPPI
MONTANA
NORTH CAROLINA
NEBRASKA
NEW HAMPSHIRE
NEW MEXICO
OHIO
OKLAHOMA
PENNSYLVANIA
RHODE ISLAND
SOUTH CAROLINA
TENNESSEE
TEXAS
WASHINGTON
WISCONSIN
WEST VIRGINIA
States which DO NOT require licensing for originating or negotiating a loan secured by commercial real estate but DO require licensing for a loan secured by non owner occupied residential real estate
IDAHO
MINNESOTA
OREGON
UTAH
VIRGINIA
States that DO require licensing for both residential and commercial real estate loan origination and brokeringARIZONA
CALIFORNIA
ILLINOIS
MICHIGAN
NEW YORK
NORTH DAKOTA
NEW JERSEY
NEVADA
SOUTH DAKOTA
Thanks Don! Glad I'm working the New Hampshire market! 馃檪
- 1yDevin PetersonBusiness MemberLender 路 Sarasota, FL 路 Member since 2022 路 2k+ posts 路 689 votes
Does anyone know the regulation behind licensed MLOs brokering or originating commercial loans in states that don't require licensing under a different company from the one the MLO is currently sponsored by who is NMLS regulated? Does that make sense? Recently had a conversation with an MLO who had their license with Company A (NMLS regulated) and then on the side, this person conducted commercial-only business loan-related activity by starting their own LLC (company B) in the states where no mortgage licenses are required. Does that make sense? Can anyone verify this is OK or is it state by state-regulated based on their individual jurisdiction?
ProAlpha Capital55 Reviews - Lender 路 Charleston, SC 路 Member since 2019 路 1k+ posts 路 1k+ votes1y
Quote from @Devin Peterson:
Does anyone know the regulation behind licensed MLOs brokering or originating commercial loans in states that don't require licensing under a different company from the one the MLO is currently sponsored by who is NMLS regulated? Does that make sense? Recently had a conversation with an MLO who had their license with Company A (NMLS regulated) and then on the side, this person conducted commercial-only business loan-related activity by starting their own LLC (company B) in the states where no mortgage licenses are required. Does that make sense? Can anyone verify this is OK or is it state by state-regulated based on their individual jurisdiction?
This is state by state as far as I have found. I asked this question with the SC BFI and am waiting for an opinion. They didnt seem thrilled about the idea but didnt outright say No, either.
- Investor 路 VA 路 Member since 2015 路 21k+ posts 路 19k+ votes1y
Quote from @Devin Peterson:
Does anyone know the regulation behind licensed MLOs brokering or originating commercial loans in states that don't require licensing under a different company from the one the MLO is currently sponsored by who is NMLS regulated? Does that make sense? Recently had a conversation with an MLO who had their license with Company A (NMLS regulated) and then on the side, this person conducted commercial-only business loan-related activity by starting their own LLC (company B) in the states where no mortgage licenses are required. Does that make sense? Can anyone verify this is OK or is it state by state-regulated based on their individual jurisdiction?
Yes I understand what you are noting, and I believe on the commercial side of things they are typically not putting their names on the docs like you do for a resi loan but just brokering/underwriting it and collecting a fee as a 1099. I know people who do this and I do not believe there are issues with it, but speak to an attorney and they should probably notify the company if they are an employee of that company that they are doing this. Most companies would require this type of disclosure since its similar to what they are doing
7e investments53 Reviews - 1yDevin PetersonBusiness MemberLender 路 Sarasota, FL 路 Member since 2022 路 2k+ posts 路 689 votes
Quote from @Patrick Roberts:
Quote from @Devin Peterson:
Does anyone know the regulation behind licensed MLOs brokering or originating commercial loans in states that don't require licensing under a different company from the one the MLO is currently sponsored by who is NMLS regulated? Does that make sense? Recently had a conversation with an MLO who had their license with Company A (NMLS regulated) and then on the side, this person conducted commercial-only business loan-related activity by starting their own LLC (company B) in the states where no mortgage licenses are required. Does that make sense? Can anyone verify this is OK or is it state by state-regulated based on their individual jurisdiction?
This is state by state as far as I have found. I asked this question with the SC BFI and am waiting for an opinion. They didnt seem thrilled about the idea but didnt outright say No, either.
Yeah, it is based on the state's regulators. NMLS call center said they have no problem with it but it strikes me as odd that the MU4 filing requires you to disclose other 'financial related activity'.
ProAlpha Capital55 Reviews - 1yDevin PetersonBusiness MemberLender 路 Sarasota, FL 路 Member since 2022 路 2k+ posts 路 689 votes
Quote from @Chris Seveney:
Quote from @Devin Peterson:
Does anyone know the regulation behind licensed MLOs brokering or originating commercial loans in states that don't require licensing under a different company from the one the MLO is currently sponsored by who is NMLS regulated? Does that make sense? Recently had a conversation with an MLO who had their license with Company A (NMLS regulated) and then on the side, this person conducted commercial-only business loan-related activity by starting their own LLC (company B) in the states where no mortgage licenses are required. Does that make sense? Can anyone verify this is OK or is it state by state-regulated based on their individual jurisdiction?
Yes I understand what you are noting, and I believe on the commercial side of things they are typically not putting their names on the docs like you do for a resi loan but just brokering/underwriting it and collecting a fee as a 1099. I know people who do this and I do not believe there are issues with it, but speak to an attorney and they should probably notify the company if they are an employee of that company that they are doing this. Most companies would require this type of disclosure since its similar to what they are doing
Yes Chris I agree - I think if anything it's not illegal state-wide or federally, since commercial lending is NMLS-recognized. However, it could be a conflict of interest between the MLO and the sponsoring company. It seems like this would have to be some preset terms under employment agreements. Other than that, the NMLS specifies no restrictions on the matter.
ProAlpha Capital55 Reviews - Lender 路 Charleston, SC 路 Member since 2019 路 1k+ posts 路 1k+ votes1y
Quote from @Devin Peterson:
Quote from @Patrick Roberts:
Quote from @Devin Peterson:
Does anyone know the regulation behind licensed MLOs brokering or originating commercial loans in states that don't require licensing under a different company from the one the MLO is currently sponsored by who is NMLS regulated? Does that make sense? Recently had a conversation with an MLO who had their license with Company A (NMLS regulated) and then on the side, this person conducted commercial-only business loan-related activity by starting their own LLC (company B) in the states where no mortgage licenses are required. Does that make sense? Can anyone verify this is OK or is it state by state-regulated based on their individual jurisdiction?
This is state by state as far as I have found. I asked this question with the SC BFI and am waiting for an opinion. They didnt seem thrilled about the idea but didnt outright say No, either.
Yeah, it is based on the state's regulators. NMLS call center said they have no problem with it but it strikes me as odd that the MU4 filing requires you to disclose other 'financial related activity'.
When I spoke with BFI on the phone earlier this year, it seemed like they were concerned with licensees engaging in unsupervised activities like private and commercial lending. In SC, you can only be employed by one regulated lender at a time per the state, and they seemed to think this was related.
The over-regulation in the mortgage industry is really ridiculous. For instance, you have to notify the state in writing if you leave a lender and tell them why. Rumor has it that SC is trying to require state licensure for commercial lending as well. Theyre currently busy with over-regulating RE investors at the moment with vague wholesaling laws, so we'll see. This kind of govt nosiness and overreach is why I initially decided against the financial planning industry before starting in credit.
- 1yJay HinrichsBusiness MemberReal Estate Consultant 路 Summerlin, NV 路 Member since 2014 路 45k+ posts 路 66k+ votes
Quote from @Devin Peterson:
Quote from @Chris Seveney:
Quote from @Devin Peterson:
Does anyone know the regulation behind licensed MLOs brokering or originating commercial loans in states that don't require licensing under a different company from the one the MLO is currently sponsored by who is NMLS regulated? Does that make sense? Recently had a conversation with an MLO who had their license with Company A (NMLS regulated) and then on the side, this person conducted commercial-only business loan-related activity by starting their own LLC (company B) in the states where no mortgage licenses are required. Does that make sense? Can anyone verify this is OK or is it state by state-regulated based on their individual jurisdiction?
Yes I understand what you are noting, and I believe on the commercial side of things they are typically not putting their names on the docs like you do for a resi loan but just brokering/underwriting it and collecting a fee as a 1099. I know people who do this and I do not believe there are issues with it, but speak to an attorney and they should probably notify the company if they are an employee of that company that they are doing this. Most companies would require this type of disclosure since its similar to what they are doing
Yes Chris I agree - I think if anything it's not illegal state-wide or federally, since commercial lending is NMLS-recognized. However, it could be a conflict of interest between the MLO and the sponsoring company. It seems like this would have to be some preset terms under employment agreements. Other than that, the NMLS specifies no restrictions on the matter.
not sure its NMLS who actually regulates it NMLS is just licensing registration I think its still the states that regulate..thats why you need a MLO in a certain state then register with NMLS if you have a MLO.. I think.. that darn NMLS website is the most user unfriendly site I have ever seen.. - Investor 路 VA 路 Member since 2015 路 21k+ posts 路 19k+ votes1y
Quote from @Patrick Roberts:
Quote from @Devin Peterson:
Quote from @Patrick Roberts:
Quote from @Devin Peterson:
Does anyone know the regulation behind licensed MLOs brokering or originating commercial loans in states that don't require licensing under a different company from the one the MLO is currently sponsored by who is NMLS regulated? Does that make sense? Recently had a conversation with an MLO who had their license with Company A (NMLS regulated) and then on the side, this person conducted commercial-only business loan-related activity by starting their own LLC (company B) in the states where no mortgage licenses are required. Does that make sense? Can anyone verify this is OK or is it state by state-regulated based on their individual jurisdiction?
This is state by state as far as I have found. I asked this question with the SC BFI and am waiting for an opinion. They didnt seem thrilled about the idea but didnt outright say No, either.
Yeah, it is based on the state's regulators. NMLS call center said they have no problem with it but it strikes me as odd that the MU4 filing requires you to disclose other 'financial related activity'.
When I spoke with BFI on the phone earlier this year, it seemed like they were concerned with licensees engaging in unsupervised activities like private and commercial lending. In SC, you can only be employed by one regulated lender at a time per the state, and they seemed to think this was related.
The over-regulation in the mortgage industry is really ridiculous. For instance, you have to notify the state in writing if you leave a lender and tell them why. Rumor has it that SC is trying to require state licensure for commercial lending as well. Theyre currently busy with over-regulating RE investors at the moment with vague wholesaling laws, so we'll see. This kind of govt nosiness and overreach is why I initially decided against the financial planning industry before starting in credit.
you can thank 2008 and all the fraud that went on for that. Like any state or federal government, something happens and they swing way to far in the other direction,
I applied for licensing in california and they will not accept federal fingerprints. They need their own set for their requirements and not accept the ones in the FBI database - like WTF - what a money grab. Georgia fines you everyday you submit a late quarterly report... Off by a day its like a$250 or $500 fine. Its insane.
7e investments53 Reviews - Lender 路 Charleston, SC 路 Member since 2019 路 1k+ posts 路 1k+ votes1y
Quote from @Chris Seveney:
Quote from @Patrick Roberts:
Quote from @Devin Peterson:
Quote from @Patrick Roberts:
Quote from @Devin Peterson:
Does anyone know the regulation behind licensed MLOs brokering or originating commercial loans in states that don't require licensing under a different company from the one the MLO is currently sponsored by who is NMLS regulated? Does that make sense? Recently had a conversation with an MLO who had their license with Company A (NMLS regulated) and then on the side, this person conducted commercial-only business loan-related activity by starting their own LLC (company B) in the states where no mortgage licenses are required. Does that make sense? Can anyone verify this is OK or is it state by state-regulated based on their individual jurisdiction?
This is state by state as far as I have found. I asked this question with the SC BFI and am waiting for an opinion. They didnt seem thrilled about the idea but didnt outright say No, either.
Yeah, it is based on the state's regulators. NMLS call center said they have no problem with it but it strikes me as odd that the MU4 filing requires you to disclose other 'financial related activity'.
When I spoke with BFI on the phone earlier this year, it seemed like they were concerned with licensees engaging in unsupervised activities like private and commercial lending. In SC, you can only be employed by one regulated lender at a time per the state, and they seemed to think this was related.
The over-regulation in the mortgage industry is really ridiculous. For instance, you have to notify the state in writing if you leave a lender and tell them why. Rumor has it that SC is trying to require state licensure for commercial lending as well. Theyre currently busy with over-regulating RE investors at the moment with vague wholesaling laws, so we'll see. This kind of govt nosiness and overreach is why I initially decided against the financial planning industry before starting in credit.
you can thank 2008 and all the fraud that went on for that. Like any state or federal government, something happens and they swing way to far in the other direction,
I applied for licensing in california and they will not accept federal fingerprints. They need their own set for their requirements and not accept the ones in the FBI database - like WTF - what a money grab. Georgia fines you everyday you submit a late quarterly report... Off by a day its like a$250 or $500 fine. Its insane.
Yep. There's talk of rolling back some of Dodd Frank with the new administration, so we'll see. The states can be ridiculous as well. I do not do business in CA under any circumstances. Same for a lot of the northeast states.
- Investor 路 VA 路 Member since 2015 路 21k+ posts 路 19k+ votes1y
Quote from @Jay Hinrichs:
Quote from @Devin Peterson:
Quote from @Chris Seveney:
Quote from @Devin Peterson:
Does anyone know the regulation behind licensed MLOs brokering or originating commercial loans in states that don't require licensing under a different company from the one the MLO is currently sponsored by who is NMLS regulated? Does that make sense? Recently had a conversation with an MLO who had their license with Company A (NMLS regulated) and then on the side, this person conducted commercial-only business loan-related activity by starting their own LLC (company B) in the states where no mortgage licenses are required. Does that make sense? Can anyone verify this is OK or is it state by state-regulated based on their individual jurisdiction?
Yes I understand what you are noting, and I believe on the commercial side of things they are typically not putting their names on the docs like you do for a resi loan but just brokering/underwriting it and collecting a fee as a 1099. I know people who do this and I do not believe there are issues with it, but speak to an attorney and they should probably notify the company if they are an employee of that company that they are doing this. Most companies would require this type of disclosure since its similar to what they are doing
Yes Chris I agree - I think if anything it's not illegal state-wide or federally, since commercial lending is NMLS-recognized. However, it could be a conflict of interest between the MLO and the sponsoring company. It seems like this would have to be some preset terms under employment agreements. Other than that, the NMLS specifies no restrictions on the matter.
not sure its NMLS who actually regulates it NMLS is just licensing registration I think its still the states that regulate..thats why you need a MLO in a certain state then register with NMLS if you have a MLO.. I think.. that darn NMLS website is the most user unfriendly site I have ever seen..Speaking of licensing, are you licensed in NV or found a way around it in nevada as you need to have a brick and mortar.
7e investments53 Reviews - 1yJay HinrichsBusiness MemberReal Estate Consultant 路 Summerlin, NV 路 Member since 2014 路 45k+ posts 路 66k+ votes
Quote from @Chris Seveney:
Quote from @Jay Hinrichs:
Quote from @Devin Peterson:
Quote from @Chris Seveney:
Quote from @Devin Peterson:
Does anyone know the regulation behind licensed MLOs brokering or originating commercial loans in states that don't require licensing under a different company from the one the MLO is currently sponsored by who is NMLS regulated? Does that make sense? Recently had a conversation with an MLO who had their license with Company A (NMLS regulated) and then on the side, this person conducted commercial-only business loan-related activity by starting their own LLC (company B) in the states where no mortgage licenses are required. Does that make sense? Can anyone verify this is OK or is it state by state-regulated based on their individual jurisdiction?
Yes I understand what you are noting, and I believe on the commercial side of things they are typically not putting their names on the docs like you do for a resi loan but just brokering/underwriting it and collecting a fee as a 1099. I know people who do this and I do not believe there are issues with it, but speak to an attorney and they should probably notify the company if they are an employee of that company that they are doing this. Most companies would require this type of disclosure since its similar to what they are doing
Yes Chris I agree - I think if anything it's not illegal state-wide or federally, since commercial lending is NMLS-recognized. However, it could be a conflict of interest between the MLO and the sponsoring company. It seems like this would have to be some preset terms under employment agreements. Other than that, the NMLS specifies no restrictions on the matter.
not sure its NMLS who actually regulates it NMLS is just licensing registration I think its still the states that regulate..thats why you need a MLO in a certain state then register with NMLS if you have a MLO.. I think.. that darn NMLS website is the most user unfriendly site I have ever seen..Speaking of licensing, are you licensed in NV or found a way around it in nevada as you need to have a brick and mortar.
Nope I do not intend to do any business of the lending variety in Vegas I only do joint ventures there. U have a lot of fake lenders use Vegas address's for some reason. - 1yDevin PetersonBusiness MemberLender 路 Sarasota, FL 路 Member since 2022 路 2k+ posts 路 689 votes
Quote from @Patrick Roberts:
Quote from @Chris Seveney:
Quote from @Patrick Roberts:
Quote from @Devin Peterson:
Quote from @Patrick Roberts:
Quote from @Devin Peterson:
Does anyone know the regulation behind licensed MLOs brokering or originating commercial loans in states that don't require licensing under a different company from the one the MLO is currently sponsored by who is NMLS regulated? Does that make sense? Recently had a conversation with an MLO who had their license with Company A (NMLS regulated) and then on the side, this person conducted commercial-only business loan-related activity by starting their own LLC (company B) in the states where no mortgage licenses are required. Does that make sense? Can anyone verify this is OK or is it state by state-regulated based on their individual jurisdiction?
This is state by state as far as I have found. I asked this question with the SC BFI and am waiting for an opinion. They didnt seem thrilled about the idea but didnt outright say No, either.
Yeah, it is based on the state's regulators. NMLS call center said they have no problem with it but it strikes me as odd that the MU4 filing requires you to disclose other 'financial related activity'.
When I spoke with BFI on the phone earlier this year, it seemed like they were concerned with licensees engaging in unsupervised activities like private and commercial lending. In SC, you can only be employed by one regulated lender at a time per the state, and they seemed to think this was related.
The over-regulation in the mortgage industry is really ridiculous. For instance, you have to notify the state in writing if you leave a lender and tell them why. Rumor has it that SC is trying to require state licensure for commercial lending as well. Theyre currently busy with over-regulating RE investors at the moment with vague wholesaling laws, so we'll see. This kind of govt nosiness and overreach is why I initially decided against the financial planning industry before starting in credit.
you can thank 2008 and all the fraud that went on for that. Like any state or federal government, something happens and they swing way to far in the other direction,
I applied for licensing in california and they will not accept federal fingerprints. They need their own set for their requirements and not accept the ones in the FBI database - like WTF - what a money grab. Georgia fines you everyday you submit a late quarterly report... Off by a day its like a$250 or $500 fine. Its insane.
Yep. There's talk of rolling back some of Dodd Frank with the new administration, so we'll see. The states can be ridiculous as well. I do not do business in CA under any circumstances. Same for a lot of the northeast states.
@Patrick Roberts @Chris Seveney - End all be all these divisions of banks and NMLS know more about me that I I know about me, lol.
ProAlpha Capital55 Reviews - Investor 路 VA 路 Member since 2015 路 21k+ posts 路 19k+ votes1y
Quote from @Devin Peterson:
Quote from @Patrick Roberts:
Quote from @Chris Seveney:
Quote from @Patrick Roberts:
Quote from @Devin Peterson:
Quote from @Patrick Roberts:
Quote from @Devin Peterson:
Does anyone know the regulation behind licensed MLOs brokering or originating commercial loans in states that don't require licensing under a different company from the one the MLO is currently sponsored by who is NMLS regulated? Does that make sense? Recently had a conversation with an MLO who had their license with Company A (NMLS regulated) and then on the side, this person conducted commercial-only business loan-related activity by starting their own LLC (company B) in the states where no mortgage licenses are required. Does that make sense? Can anyone verify this is OK or is it state by state-regulated based on their individual jurisdiction?
This is state by state as far as I have found. I asked this question with the SC BFI and am waiting for an opinion. They didnt seem thrilled about the idea but didnt outright say No, either.
Yeah, it is based on the state's regulators. NMLS call center said they have no problem with it but it strikes me as odd that the MU4 filing requires you to disclose other 'financial related activity'.
When I spoke with BFI on the phone earlier this year, it seemed like they were concerned with licensees engaging in unsupervised activities like private and commercial lending. In SC, you can only be employed by one regulated lender at a time per the state, and they seemed to think this was related.
The over-regulation in the mortgage industry is really ridiculous. For instance, you have to notify the state in writing if you leave a lender and tell them why. Rumor has it that SC is trying to require state licensure for commercial lending as well. Theyre currently busy with over-regulating RE investors at the moment with vague wholesaling laws, so we'll see. This kind of govt nosiness and overreach is why I initially decided against the financial planning industry before starting in credit.
you can thank 2008 and all the fraud that went on for that. Like any state or federal government, something happens and they swing way to far in the other direction,
I applied for licensing in california and they will not accept federal fingerprints. They need their own set for their requirements and not accept the ones in the FBI database - like WTF - what a money grab. Georgia fines you everyday you submit a late quarterly report... Off by a day its like a$250 or $500 fine. Its insane.
Yep. There's talk of rolling back some of Dodd Frank with the new administration, so we'll see. The states can be ridiculous as well. I do not do business in CA under any circumstances. Same for a lot of the northeast states.
@Patrick Roberts @Chris Seveney - End all be all these divisions of banks and NMLS know more about me that I I know about me, lol.
I was at the airport this past week flying to visit family and in TSA precheck line they scan your license in a machine and take a photo of you. for some reason mine was not working and it basically had like an alert on it. they ask me if I have another form of ID on me. I replied I had credit cards but no photo id. I have it on my phone (passport). They said that does not work. I said, well I have had to have my fingerprints done multiple times, had to send in affidavits of who I am, fill out a fincen report for my company so I think you already have plenty of information on me already... What do you want to know about me that you already do not know?
7e investments53 Reviews - Real Estate Consultant 路 Mercedes TX 路 Member since 2025 路 4 posts 路 0 votes1y
Quote from @Don Konipol:
There has always been many questions as to if one needs to be licensed to engage in COMMERCIAL mortgage brokering/origination or RESIDENTIAL INVESTMENT property mortgages. Here is a list of states divided into three categories, based on my internet research. If you have any corrections to make please let us know.
States which DO NOT require licensing for originating or negotiating a loan secured by commercial real estate nor a loan secured by non owner occupied residential real estate
ALASKA
ARKANSAS
COLORADO
CONNECTICUT
DC
DELAWARE
FLORIDA
GEORGIA
HAWAII
IOWA
INDIANA
KANSAS
KENTUCKY
INDIANA
KANSAS
LOUISIANAMASS
MARYLAND
MAINE
MISSOURI
MISSISSIPPI
MONTANA
NORTH CAROLINA
NEBRASKA
NEW HAMPSHIRE
NEW MEXICO
OHIO
OKLAHOMA
PENNSYLVANIA
RHODE ISLAND
SOUTH CAROLINA
TENNESSEE
TEXAS
WASHINGTON
WISCONSIN
WEST VIRGINIA
States which DO NOT require licensing for originating or negotiating a loan secured by commercial real estate but DO require licensing for a loan secured by non owner occupied residential real estate
IDAHO
MINNESOTA
OREGON
UTAH
VIRGINIA
States that DO require licensing for both residential and commercial real estate loan origination and brokeringARIZONA
CALIFORNIA
ILLINOIS
MICHIGAN
NEW YORK
NORTH DAKOTA
NEW JERSEY
NEVADA
SOUTH DAKOTA
Does this still hold true for 2025?
- Investor 路 The Woodlands TX / Avon, CT 路 Member since 2009 路 6k+ posts 路 10k+ votes1yI don鈥檛 know. If anyone has updates/chances please let us know
Quote from @Alejandro G.:
Quote from @Don Konipol:
There has always been many questions as to if one needs to be licensed to engage in COMMERCIAL mortgage brokering/origination or RESIDENTIAL INVESTMENT property mortgages. Here is a list of states divided into three categories, based on my internet research. If you have any corrections to make please let us know.
States which DO NOT require licensing for originating or negotiating a loan secured by commercial real estate nor a loan secured by non owner occupied residential real estate
ALASKA
ARKANSAS
COLORADO
CONNECTICUT
DC
DELAWARE
FLORIDA
GEORGIA
HAWAII
IOWA
INDIANA
KANSAS
KENTUCKY
INDIANA
KANSAS
LOUISIANAMASS
MARYLAND
MAINE
MISSOURI
MISSISSIPPI
MONTANA
NORTH CAROLINA
NEBRASKA
NEW HAMPSHIRE
NEW MEXICO
OHIO
OKLAHOMA
PENNSYLVANIA
RHODE ISLAND
SOUTH CAROLINA
TENNESSEE
TEXAS
WASHINGTON
WISCONSIN
WEST VIRGINIA
States which DO NOT require licensing for originating or negotiating a loan secured by commercial real estate but DO require licensing for a loan secured by non owner occupied residential real estate
IDAHO
MINNESOTA
OREGON
UTAH
VIRGINIA
States that DO require licensing for both residential and commercial real estate loan origination and brokeringARIZONA
CALIFORNIA
ILLINOIS
MICHIGAN
NEW YORK
NORTH DAKOTA
NEW JERSEY
NEVADA
SOUTH DAKOTA
Does this still hold true for 2025?
- Investor 路 VA 路 Member since 2015 路 21k+ posts 路 19k+ votes1y
Quote from @Alejandro G.:
Quote from @Don Konipol:
There has always been many questions as to if one needs to be licensed to engage in COMMERCIAL mortgage brokering/origination or RESIDENTIAL INVESTMENT property mortgages. Here is a list of states divided into three categories, based on my internet research. If you have any corrections to make please let us know.
States which DO NOT require licensing for originating or negotiating a loan secured by commercial real estate nor a loan secured by non owner occupied residential real estate
ALASKA
ARKANSAS
COLORADO
CONNECTICUT
DC
DELAWARE
FLORIDA
GEORGIA
HAWAII
IOWA
INDIANA
KANSAS
KENTUCKY
INDIANA
KANSAS
LOUISIANAMASS
MARYLAND
MAINE
MISSOURI
MISSISSIPPI
MONTANA
NORTH CAROLINA
NEBRASKA
NEW HAMPSHIRE
NEW MEXICO
OHIO
OKLAHOMA
PENNSYLVANIA
RHODE ISLAND
SOUTH CAROLINA
TENNESSEE
TEXAS
WASHINGTON
WISCONSIN
WEST VIRGINIA
States which DO NOT require licensing for originating or negotiating a loan secured by commercial real estate but DO require licensing for a loan secured by non owner occupied residential real estate
IDAHO
MINNESOTA
OREGON
UTAH
VIRGINIA
States that DO require licensing for both residential and commercial real estate loan origination and brokeringARIZONA
CALIFORNIA
ILLINOIS
MICHIGAN
NEW YORK
NORTH DAKOTA
NEW JERSEY
NEVADA
SOUTH DAKOTA
Does this still hold true for 2025?
THis is constantly changing and best to stay in tune with your attorney in that state and follow groups like Hornek and Geraci
7e investments53 Reviews - Investor 路 The Woodlands TX / Avon, CT 路 Member since 2009 路 6k+ posts 路 10k+ votes1yRight Chris. If anyone can update or confirm any particular state in regard to my original post, please respond with the source so we can maintain an updated list.
Quote from @Chris Seveney:
Quote from @Alejandro G.:
Quote from @Don Konipol:
There has always been many questions as to if one needs to be licensed to engage in COMMERCIAL mortgage brokering/origination or RESIDENTIAL INVESTMENT property mortgages. Here is a list of states divided into three categories, based on my internet research. If you have any corrections to make please let us know.
States which DO NOT require licensing for originating or negotiating a loan secured by commercial real estate nor a loan secured by non owner occupied residential real estate
ALASKA
ARKANSAS
COLORADO
CONNECTICUT
DC
DELAWARE
FLORIDA
GEORGIA
HAWAII
IOWA
INDIANA
KANSAS
KENTUCKY
INDIANA
KANSAS
LOUISIANAMASS
MARYLAND
MAINE
MISSOURI
MISSISSIPPI
MONTANA
NORTH CAROLINA
NEBRASKA
NEW HAMPSHIRE
NEW MEXICO
OHIO
OKLAHOMA
PENNSYLVANIA
RHODE ISLAND
SOUTH CAROLINA
TENNESSEE
TEXAS
WASHINGTON
WISCONSIN
WEST VIRGINIA
States which DO NOT require licensing for originating or negotiating a loan secured by commercial real estate but DO require licensing for a loan secured by non owner occupied residential real estate
IDAHO
MINNESOTA
OREGON
UTAH
VIRGINIA
States that DO require licensing for both residential and commercial real estate loan origination and brokeringARIZONA
CALIFORNIA
ILLINOIS
MICHIGAN
NEW YORK
NORTH DAKOTA
NEW JERSEY
NEVADA
SOUTH DAKOTA
Does this still hold true for 2025?
THis is constantly changing and best to stay in tune with your attorney in that state and follow groups like Hornek and Geraci
- New to Real Estate 路 Gardnerville, NV 路 Member since 2025 路 1 post 路 0 votes1y
WOW! I have been searching everywhere and calling lawyers and I have not been able to get a definitive answer. Thank you for making this List.
- Lender 路 Charleston, SC 路 Member since 2019 路 1k+ posts 路 1k+ votes1y
This site has a decent list and explanations, but I cannot vouch for how accurate this is. I will say that for the states I'm fairly knowledgeable in (SC, NC, LA), it seems pretty accurate.
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