Do you want to become a mortgage broker in the state of Iowa? Your first step is to pass through the required administrative procedures. This entails obtaining an Iowa mortgage broker license that allows you to operate in the state.
The licensing authority is the Iowa Division of Banking. You have to comply with its requirements. The actual licensing process for mortgage brokers is handled via the website of the Nationwide Mortgage Licensing System (NMLS), as in most other states.
In the guide below, you can get to know the step-by-step procedure for getting licensed as a mortgage broker in the state of Iowa.
Iowa Mortgage Broker License Requirements
The criteria for mortgage brokers set by the Division of Banking are detailed in the next steps.
1. Register your business and trade name
Before you can apply for a mortgage license, you have to register a business entity with the Iowa Secretary of State. You also need a Fictitious Name Resolution in case you will be using other trade names. All formation documents have to accompany your license application.
In addition, you have to provide a Certificate of Authority/Good Standing Certificate from the Secretary of State as well.
2. Provide your financial statements and credit reports
You have to provide your company’s financial statement. It has to be either prepared by a Certified Public Accountant (in case it is audited, reviewed, or compiled) or signed by an executive officer (if it is unaudited) in accordance with the Generally Accepted Accounting Principles.
The statement has to be made within 90 days of your fiscal year end. It needs to contain a balance sheet, income statement, statement of cash flows, and any relevant notes to them.
3. Obtain an Iowa mortgage broker bond
All applicants have to provide an Iowa mortgage broker bond. It works as a safety net that protects your customers against illegal actions on your side. The bond ensures you will follow Chapter 535B of the Code of Iowa and any other applicable rules.
You need to post a $100,000 surety bond. In order to get bonded, you have to pay a bond premium. It constitutes a fraction of the required amount, determined on the basis of your financial profile. If your personal and business finances are in good shape, you can get rates as low as 0.75% to 1.5%.
For an instant online estimate of your mortgage broker bond cost, complete the form below. It’s 100% free and there is no obligation.
4. Appoint a Registered Agent
You have to list a Resident/Registered Agent on your application form. It has to match the information currently on record with the Iowa Secretary of State.
5. Pass a criminal background check and answer the disclosure questions
Direct and indirect owners, as well as executive officers, have to authorize an FBI criminal background check.
You also have to provide detailed answers to the disclosure questions on the application form.
6. Provide additional information
The rest of the documents and information that you need to supply include:
- Primary contact employees information
- Control Person (MU2) Attestation
Application Process and Fees
You can find out the full list of requirements in the NMLS application checklist.
Once you have prepared all the necessary documents, you can submit them via the NMLS website.
The relevant fees that you need to pay include:
- $400 Iowa application fee
- $100 NMLS processing fee
- $36.25 FBI Criminal Background Check fee per person
Have further questions about the Iowa mortgage broker license and bonding process? Don’t hesitate to call us at 866.450.3412.