Mortgage Licensing

Mortgage lenders are financial institutions that specialize in providing loans to individuals for purchasing a house or property. There are various types of mortgage lenders, including online lenders, banks, and credit unions.

Mortgage lending companies must meet specific requirements to provide individuals with loans. If they operate in multiple states, they must ensure that they have a license to operate in each state as each state has its own regulations governing mortgage lending. Moreover, they must comply with federal laws, such as the Fair Housing Act, Equal Credit Opportunity Act, and Fair Credit Reporting Act, which regulate mortgage lending practices. Non-compliance with these laws can lead to legal action, including fines, penalties, and orders to cease business operations.

Mortgage loan originators (MLO) work for banks or mortgage companies and assist homebuyers with the loan application process. MLOs provide guidance to clients on the various types of loans available to help customers find the best loan for their specific situation. The licensing requirements for MLOs can vary depending on the jurisdiction and the specific regulations in place but requirements typically involve pre-licensing education, state and national exams, a background check, a credit report, an application, as well as a surety bond and insurance.

A mortgage servicer is a company that manages the day-to-day operations of a mortgage loan. This includes tasks such as collecting payments, managing escrow accounts, and working with borrowers who are struggling to make their payments to help them avoid foreclosure. Mortgage servicers ensure that loans are managed properly and borrowers are treated fairly.

Cornerstone is well suited to be your expert in providing the necessary licenses, insurance, and bonds to operate effectively and within regulations. This allows you to focus on growing your clientele without fear of legal or financial repercussions from unwittingly being out of compliance.