Thinking about starting a mortgage brokering business in Rhode Island? You need to obtain a Rhode Island mortgage broker license so that you can launch your operations in the state.
The Rhode Island Department of Business Regulation sets the requirements that mortgage professionals have to fulfill. To get licensed, however, you have to undergo the procedure via the Nationwide Mortgage Licensing System (NMLS) website.
In the sections below, you can find out the steps you need to take to start your mortgage brokerage in Rhode Island.
Rhode Island Mortgage Broker License Requirements
The licensing authority in the state is the Division of Banking at the Department of Business Regulation. Here are its licensing requirements.
1. Register your business and trade name
As a first step, you have to set a business entity in Rhode Island. You can do so by registering with the Rhode Island Secretary of State.
You then need to attach your formation documents to the license application form. You need to provide paperwork for any additional trade names as well.
2. Provide your financial statements and credit reports
You need to attach your financial statements prepared in accordance with Generally Accepted Accounting Principles. It should contain a Balance Sheet and Income Statement.
All individuals in a position of control have to authorize a credit report check through the NMLS website.
3. Obtain a Rhode Island mortgage broker bond
Posting a surety bond is an indispensable requirement for obtaining a Rhode Island loan broker license. It works as a safety net that protects your customers. It guarantees you will follow Title 34 of the Rhode Island General Laws and all applicable laws.
The amount of the Rhode Island mortgage broker bond depends on the number of branches you want to operate:
- Up to 3 – $20,000
- Between 4 and 7 – $30,000
- More than 8 – $45,000
To get bonded, you have to pay only a fraction of the required amount. It is called the bond premium. The strength of your personal and business finances is the main factor according to which the cost is set. If they are in good shape, the rates you can get are between 0.75% to 1.5%.
Want to see an estimate of your mortgage broker bond price? You can consult the table below.
4. Appoint a Registered Agent and a Qualifying Individual
You have to note down a Resident/Registered Agent in the application form. The person has to be located in Rhode Island.
You also have to appoint a Qualifying Individual for every branch location.
5. Pass a criminal background check and complete the disclosure questions
Qualifying individuals, executive officers, and direct and indirect owners have to authorize an FBI criminal background check through the NMLS.
You are also required to fill in the answers to the disclosure questions on the application form.
6. Provide additional information
You have to provide the following documents as well:
- Municipality registration for sole proprietors
- Sharing of office space documents, if applicable
Application Process and Fees
The full list of requirements for obtaining a Rhode Island mortgage broker license is in the NMLS application checklist.
When you have obtained all the necessary documents, you have to submit them online via the NMLS website.
You need to pay the following fees:
- $925 for all license and processing fees
- $15 Credit Report Fee per person
- $36.25 FBI Criminal Background Check Fee per person
Do you have more questions about obtaining your Rhode Island mortgage broker license and bond? You can reach us at 866.450.3412.