The state of Kentucky issues three different mortgage-related licenses – two types of company licenses and one individual license. These are the mortgage broker license, mortgage company license, and the individual mortgage loan originator license.
These licenses are issued and regulated by the Kentucky Department of Financial Institutions (DFI). To apply for your license, though, you must use the Nationwide Mortgage Licensing System (NMLS).
Want to get a Kentucky mortgage broker license? Follow the steps below!
1. Register Your Business in Kentucky
Prior to applying for your license through NMLS, you must establish your business in the state.
For the purpose, you can use the Kentucky One Stop Business Portal. Once you’ve registered your business entity and have received your formation documents, you can proceed with the licensing process.
2. Meet the Kentucky Mortgage Broker License Requirements
To begin covering the licensing criteria for your license type, you must first register in NMLS. After you set up your user profile, you will be given access to the application forms which you must complete in the system. Along with that, you will need to submit a series of supporting documents.
The following are the licensing requirements for the mortgage broker license, mortgage company license, and mortgage loan originator licenses in Kentucky. For a full overview, you can also see the NMLS Kentucky State Licensing Requirements page.
Mortgage Broker & Mortgage Company License Application
Mortgage broker license and mortgage company license applicants share almost entirely the same licensing requirements. Following are the documents which you must submit through NMLS as part of your application:
- Company form MU1
- Authorized credit report through NMLS for individuals in a position of control
- A detailed explanation for any “Yes” responses to the disclosure questions in company form MU1
- An audited financial statement prepared by a CPA according to Generally Accepted Accounting Principles (GAAP)
- Personal financial statements for every 10% owner
- Formation documents
- Certificate of good authority / Good standing certificate
- Organizational chart
- Kentucky mortgage broker bond ($50,000 bond for mortgage broker license applicants and $250,000 bond for mortgage company license applicants)
- Proof of completion of pre-licensing requirements for control persons (only required of mortgage broker license applicants)
These are all of the documents that you must submit as part of your license application. See the next section for the steps you need to take next.
Mortgage Loan Originator License Application
The following are the licensing requirements that loan originators in Kentucky must meet in order to get licensed. For more information about the education and testing requirements, make sure to contact the DFI.
- 20 hours of NMLS-approved pre-license education courses
- Passing a pre-licensing test
After you complete the education and testing requirements, you can proceed with completing the license application forms and additional paperwork.
- Individual form MU4
- Authorized FBI criminal background check through NMLS
- Authorized credit report through NMLS
- Explanations for any “Yes” responses to the disclosure questions in form MU4
- Company sponsorship (to be submitted by your employer)
- Kentucky mortgage broker bond (a $15,000 or $20,000 bond, depending on annual loan volume)
These are the main licensing requirements for loan originators in Kentucky. To learn more about the surety bond requirement, see the next section!
3. Get Your Kentucky Mortgage Broker Bond
All applicants for a mortgage-related license in Kentucky must obtain a surety bond. Bond amounts are as follows:
- $50,000 bond for a mortgage broker license
- $250,000 bond for a mortgage company license
- $20,000 or $15,000 bond for a mortgage loan originator license (applicants with less than $10 million in loan volume must post a $15,000 bond, whereas those with more than $10 million must post a $20,000 bond)
The purpose of all Kentucky mortgage broker bonds is to guarantee that licensees will comply with the provisions of the Kentucky Revised Statutes (KRS).
To get bonded, you need to pay a bond premium. This premium is determined on the basis of your financials and primarily your personal credit score. The higher your score is, the cheaper it is to get bonded.
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4. Pay Fees and Submit Your Application
Upon meeting the licensing requirements, you are ready to submit your application, along with your licensing fee. Here is what you need to pay to get licensed:
- $850 mortgage broker license fee
- $850 mortgage company license fee
- $80 mortgage loan originator license and NMLS processing fee, $15 credit report fee, $36.25 FBI criminal background check fee
Once you submit your application and supporting documents through NMLS, the DFI will begin reviewing them. This process may take up to several weeks after which you will be notified if your license will be issued.
If you have any additional questions about the licensing process, make sure to contact the DFI.
To learn more about surety bonds and how to apply for your bond, call us at 866.450.3412 anytime!