If you want to start a business as a mortgage broker in Connecticut, you have to go through a rigorous licensing procedure. You need to obtain a Connecticut mortgage broker license so that you can operate legally in the state.
The licensing requirements are set by the Connecticut Department of Banking. It oversees the activities of mortgage professionals in the state. However, the actual process is conducted via the Nationwide Mortgage Licensing System (NMLS).
Read on for the full details about the licensing process.
Connecticut Mortgage Broker License Requirements
How to become a mortgage broker in CT? You have to follow the licensing procedure set by the Department and satisfy the following state requirements.
1. Register your business and trade name
First of all, you have to set up your business in the state. You can do so through the Connecticut Department of Economic and Community Development. Then you have to provide the formation documents with your application.
If you’re going to use a trade name, you have to showcase your registration as well.
2. Provide your financial statements and credit reports
You have to provide a financial statement prepared within 12 months of the application date. It should include a balance sheet, an income statement, and a statement of cash flows and all relevant notes. The statement should demonstrate you meet the minimum net worth requirement of $50,000.
Direct and indirect owners, as well as qualifying individuals, have to authorize a credit report check through the NMLS.
3. Obtain a Connecticut mortgage broker bond
All applicants for a mortgage broker license have to obtain a Connecticut mortgage broker bond. It is a safety mechanism that safeguards the interests of your clients. The bond guarantees your compliance with the Banking Law of Connecticut. You have to provide it in the official bond form.
The bonding amounts are set on the basis of your dollar amount of origination volume:
- Less than $30 million – $50,000
- Between $30 million and $50 million – $100,000
- More than $50 million – $150,000
Your actual surety bond cost is a small percentage of the required bond amount. The cost depends on the strength of your personal and business finances. If your credit score is good, you can get a rate as low as 0.75% to 1.5% of the bond amount. For more information about the surety bond requirements check out our Connecticut Mortgage Broker Bond Guide.
To get a free Connecticut mortgage broker bond quote, apply below.
4. Appoint registered agents and qualifying individuals
In the application form, you have to list your Resident/Registered Agents and primary and non-primary contact employees. You also need to list the Qualifying Individual(s).
You need to provide a Direct Owner/Executive Officer and Control Person (MU2) Attestation for each of these individuals.
5. Pass a criminal background check and answer the disclosure questions
Direct and indirect owners and Qualifying Individuals have to authorize an FBI criminal background check via the NMLS.
You also have to complete the disclosure questions for the Company, each control Person, and Qualifying Individual.
Application Process and Fees
To get a full overview of all the requirements, you need to check the application checklist. When you have obtained all the necessary paperwork, you can submit your application via the NMLS website.
The licensing fees that you need to pay include:
- $500 CT License Fee
- $100 NMLS Initial Processing Fee
- $15 Credit Report Fee per person
- $36.25 FBI Criminal Background Check Fee per person
Have further questions about the Connecticut mortgage broker licensing process? You can call us at (866)-450-3412.