Loan Officers can be sponsored by Loan Factory in 48 states (except Connecticut and New York)
LICENSED IN MULTIPLE STATES AND SPONSORED BY DIFFERENT MORTGAGE COMPANIES
DID YOU KNOW?
Loan Officers (even brokers) can be licensed in multiple states and be sponsored by different mortgage companies.
- General Rule: In each state, a Loan Officer can be sponsored by only one mortgage company.
- Exceptions: In CO, DE, ME, MN, TX, and WA, Loan Officer can have multiple sponsors.
- Special States: In GA, MT, OH, OR and PA, a Loan Officer can only have one sponsor and cannot be sponsored in other states. In VA, if the MLO want to get paid in 1099, the MLO must sign an Exclusive Agent Agreement with Loan Factory. The MLO cannot work with any other mortgage company.
ADDING NEW STATE LICENSES
If you are CURRENTLY licensed and want to obtain license in more states, you DO NOT need to pass the exam again
Step 1
Pick an interested state
Select the state you want to obtain a license. You will see the number of hours of a state-specific
course that you must take in order to obtain a license. In general, you do not need to pass the exam
again
The following states do not require additional hours (You can skip to step 3 below):
Alabama
Delaware
Iowa
Louisiana
Missouri
Virginia
Alaska
Georgia (W-2)
Kansas
Maine (W-2)
North Dakota
Wisconsin
Arkansas
Illinois (W-2)
Kentucky
Minnesota
South Dakota
Wyoming
Step 2
Register and complete the state-specific course at www.mortgage-education.com
Make sure to click on this button (see below) and select the state. Each hour will cost $15. Therefore,
if you need to take a 3-hour course, it will cost you $45
Step 3
Apply for the state license on NMLS
Login to NMLS and complete the individual form (MU4), pay
any associated fees, and submit application to NMLS
Step 4
Request sponsorship
See below for the steps to request NMLS Sponsorship from Loan
Factory
REQUEST NMLS SPONSORSHIP FROM LOAN FACTORY
These are steps to sign up with Loan Factory
Step 1
Log in to NMLS and Grant Access Right to Loan Factory.
Step 2
Remove your relationship with your current employer, put an end date to your prior employment and submit a new MU4 to add Loan Factory as your employer.
Step 3
Request NMLS Sponsorship from Loan Factory (NMLS #: 320841). Loan Factory will be notified and proceed to sponsor you.
Step 4
Resolve any Active License Items that the state will ask you. (You must log in and check NMLS regularly and clear the requests from the state. Once complete, it will take the regulator around 5-7 days to approve.)
HOW LONG WOULD IT TAKE FOR LOAN FACTORY TO SPONSOR MY LICENSED?
- Alaska: 15 calendar days
- Alabama: 18 calendar days
- Arkansas: 15 calendar days
- Arizona: 20 calendar days
- California: 24 calendar days
- Colorado: 12 calendar days
- Connecticut: 3 calendar days
- District of Columbia: 38 calendar days
- Florida: 8 calendar days
- Georgia: 12 calendar days
- Hawaii: 10 calendar days
- Idaho: 11 calendar days
- Illinois: 9 calendar days
- Kentucky: 30 calendar days
- Louisiana: 16 calendar days
- Massachusetts: 13 calendar days
- Maryland: 19 calendar days
- Michigan: 40 calendar days
- Minnesota: 10 calendar days
- Missouri: 10 calendar days
- North Carolina: 14 calendar days
- Nebraska: 4 calendar days
- New Hampshire: 14 calendar days
- New Jersey: 37 calendar days
- New Mexico: 26 calendar days
- Nevada: 26 calendar days
- Ohio: 13 calendar days
- Oklahoma: 4 calendar days
- Oregon: 13 calendar days
- Pennsylvania: 11 calendar days
- Tennessee: 9 calendar days
- Texas: 17 calendar days
- Utah: 14 calendar days
- Virginia: 11 calendar days
- Washington: 15 calendar days
- Alaska: 15 calendar days
- Alabama: 18 calendar days
- Arkansas: 15 calendar days
- Arizona: 20 calendar days
- California: 24 calendar days
- Colorado: 12 calendar days
- Connecticut: 3 calendar days
- District of Columbia: 38 calendar days
- Florida: 8 calendar days
- Georgia: 12 calendar days
- Hawaii: 10 calendar days
- Idaho: 11 calendar days
- Illinois: 9 calendar days
- Kentucky: 30 calendar days
- Louisiana: 16 calendar days
- Massachusetts: 13 calendar days
- Maryland: 19 calendar days
- Michigan: 40 calendar days
- Minnesota: 10 calendar days
- Missouri: 10 calendar days
- North Carolina: 14 calendar days
- Nebraska: 4 calendar days
- New Hampshire: 14 calendar days
- New Jersey: 37 calendar days
- New Mexico: 26 calendar days
- Nevada: 26 calendar days
- Ohio: 13 calendar days
- Oklahoma: 4 calendar days
- Oregon: 13 calendar days
- Pennsylvania: 11 calendar days
- Tennessee: 9 calendar days
- Texas: 17 calendar days
- Utah: 14 calendar days
- Virginia: 11 calendar days
- Washington: 15 calendar days
Temporary Authority Checklist
- Have you been state-licensed for 30 days or federal-registered for 1 year prior?
- Do you have a current W2 classification status showing in your NMLS record?
- Your license has not been revoked, suspended, denied, or cease and desist.
Basically, if you are currently a W-2 loan officer (with Loan Factory or with another broker/lender) with good standing, you can apply to have a license in another state. As long as you complete the license application with the NMLS, you are likely able to originate right away. You do not have to wait for the state to approve your license (normally take 3-20 business days).
SUPERVISORY DISTANCE REQUIREMENTS
There are a few states require supervisory distance between MLO's residence and current sponsoring office location (our office):
- Mississippi: 125 miles
- South Carolina: 75 miles
- Wisconsin: 100 miles
- Wyoming: 100 miles
- Nebraska: The Department does have a commutable distance requirement in place.
While there is no specific mileage figure, the Department requires that all commutable distances be
reasonable in nature.
Where a commute distance could lead to potential issues, the mortgage banker and/or MLO should be prepared
to answer any questions or
provide explanations or clarification regarding the commute to and from the associated licensed location.
- New Jersey: The Department considers a reasonable commuting distance to be 2.5 hours of the assigned
location
- Rhode Island: The remote location is the employee’s residence or other location identified in the
records of the licensee and is within
a reasonable distance of a place of business named in the licensee’s license or branch certificate, as
established by regulations adopted
by the director or the director’s designee.
COMPENSATION TYPES
-
A loan officer must be classified as either W-2 or 1099
(cannot be both).
-
In these 13 states, the Loan Officer must be classified as W-2
Loan Officer: GA (Georgia), IL (Illinois), ME (Maine) , MA
(Massachusetts), MD (Maryland), MS (Mississippi), MT(Montana),
NV (Nevada), NJ (New Jersey), NC (North Carolina), SC (South
Carolina), RI (Rhode Island), and VT (Vermont).
A Loan Officer will receive 100% of the commission from every
deal they close. Loan Factory will charge a flat fee of $595 for
each deal, in addition to a processing fee of $500.
A Loan Officer will receive 90% of the commission from every deal they close, but first, they need to pay a flat fee of $595 and a processing fee of $500.
Remember, loan officers must also pay any payroll taxes themselves.