Massachusetts Mortgage Licensing

Massachusetts currently is the most difficult state to obtain a Mortgage Lender License. They will look at many things not mentioned on their application. This includes:

Financials – They will review your company financials to make sure you haven’t had any net losses. If you are very new company and had large expenses to set up your company, they will deny your application even if you show a very strong net worth and business plan for future growth. So it is best to apply immediately after forming the company before there are any expenses, or wait until you have a positive net income to apply.

Warehouse Line Capacity – They will review to make sure your warehouse lines are large enough to handle the volume of loans you are closing and anticipate closing once you obtain your MA License. This determination is very arbitrary (Based on random choice or personal whim, rather than any reason or system).

Management Capacity – They will review to make sure you have enough “management” to create and implement company policy. They will often ask for you to add additional “management” as control persons in the direct owner/executive officer section of the NMLS which forces you to report these individuals as executive officers to all other states you may be licensed in. This determination is very arbitrary (Based on random choice or personal whim, rather than any reason or system).

Experience For Qualifying Individual – Although the application only requests verification of experience for the person designated as the qualifying individual, I have also seen them arbitrarily require control persons of the company (Direct Owners/Excutive Officers) that are not the qualifying individual to also verify experience.

Mortgage Call Reports – They will review the NMLS Mortgage Call Reports filed by your company in other states very closely and require them to be updated if there are any errors. This includes balancing of Application Data, Closed Loan Data and MLO Data, and balancing of Application Data in process at the end of each quarter and the beginning of the next quarter. They will require you to fix any errors.

Disclosure Questions – They will review disclosure questions very carefully. Any disclosure questions answered incorrectly will result in denial whether it was a mistake or intentional. And I have yet to see anyone intentionally falsify a disclosure so these are all situations where something was mistakenly not disclosed. Disclosure questions often missed are questions regarding regulatory actions from other states for your company or any company’s that the Control Persons (Direct Owners/Executive Officers) previously owned or controlled.

Out-of-State Examinations – They will review state examinations from other states your company is licensed in. If any orders were issued by the other state(s), no matter how minor the violations, they will deny your application.

In-State Examinations – If your company currently holds a MA Mortgage Broker License, they will review the results of your last examination. If it was given a rating of 3 or worse then they will deny your application.

Mortgage Banker

Mortgage Lender License

Physical In-State Office Required: No
Qualifying Individual: Yes, 5 year of mortgage experience (verified by w-2s, 1099s, and tax returns) and good credit (Regulatory Bulletin 5.1-102 Experience Requirements for Mortgage Lender and Mortgage Broker Licensing)
Minimum Net Worth: $200,000 – Audited
Surety Bond: $100,000 to $500,000
Comments: (Does not allow brokering. Must also obtain broker license if you want to broker.) Requires Warehouse Line

License Cost Breakdown – Estimated fees not including Integrity Mortgage Licensing Service Fee:
$400 – Foreign Entity Fee
$125 – Registered Agent Fee
$1,000 – $100k Surety Bond Fee
$1,800 – Company License Fee

Mortgage Broker

Mortgage Broker License

Physical In-State Office Required: No
Qualifying Individual: Yes, 3 year of mortgage experience (verified by w-2s, 1099s, and tax returns) and good credit (Regulatory Bulletin 5.1-102 Experience Requirements for Mortgage Lender and Mortgage Broker Licensing)
Minimum Net Worth: $25,000 – Audited or Reviewed
Surety Bond: $75,000

License Cost Breakdown – Estimated fees not including Integrity Mortgage Licensing Service Fee:
$400 – Foreign Entity Fee
$125 – Registered Agent Fee
$750 – Surety Bond Fee
$1,000 – Company License Fee

Mortgage Servicer

Third Party Loan Servicer Registration

Physical In-State Office Required: No
Qualifying Individual: No
Minimum Net Worth: $ None
Surety Bond: $ None

License Cost Breakdown – Estimated fees not including Integrity Mortgage Licensing Service Fee:
$400 – Foreign Entity Fee
$125 – Registered Agent Fee
$900 – Company License Fee

Regulated by:

Division of Banks

1000 Washington Street, Floor 10
Boston, Massachusetts 02118-2218

Massachusetts Mortgage Licensing