| Mortgage Licensing can be a very arduous process. | | | | documentation, the processor can easily get frustrated |
| Any time we deal with the government, the likelyhood | | | | and confused on what is needed. The processor will |
| of getting great customer service is very slim. The | | | | likely put your file on the bottom of the stack and work |
| reason being that the state or federal government | | | | on it later. It can go back and forth for a long time. The |
| employees are not compensated with bonuses or | | | | same situation occurs with licensing. If the file is missing |
| commissions for processing more applications each | | | | major items, then the state analyst has to request |
| month. Most government employees that I have | | | | those items, and your application is put on the bottom |
| worked with are just doing the minimum needed to | | | | of the pile. Again, a process that should take a couple |
| stay employed so that they can receive their check | | | | months turns into 4 or 5 months very easily. |
| each month and their retirement at the end of their | | | | Another very important aspect of how long it will take |
| career. There are some exceptions though. A few | | | | to get a mortgage license is the time to prepare the |
| states have great management and helpful licensing | | | | application. I have seen applications completed in a few |
| analysts. New Mexico, Idaho, Utah, Delaware, | | | | days, and I have also seen applications take numerous |
| Tennessee, and Wyoming are few examples. | | | | months to be completed. When I prepare mortgage |
| With that being said, processing times for new license | | | | license applications, I will send a list of needed items to |
| applications can greatly differ. If you apply for a New | | | | the mortgage company. If the company does not |
| Mexico license on a Monday, it is possible to have it | | | | provide me the items, I cannot complete the application. |
| approved by Friday. However, if you apply for a New | | | | Usually the needed items are simple such as resumes, |
| York license on January 1st, it is possible that you | | | | credit reports, and financials on the owners or |
| won't have the license by the following year. They are | | | | formation documents, financials, and reference letters |
| just very unorganized and the red tape can stop you | | | | on the company, however, if they are not provided, the |
| in your tracks at times. Generally though, most states | | | | application will just sit and the timeframe for the state |
| take about 2 month to process a license application, | | | | to process the application will never start. |
| because the state regulations require them to provide | | | | Usually most companies are able to provide the |
| you with a response within 60 days. As long as you | | | | needed documentation within 2 to 4 weeks. And the |
| submit everything correctly the first time, you can | | | | states take 8 to 12 weeks to process the application. |
| expect to have your license in that time frame. If items | | | | So the average time to obtain a mortgage license |
| are missing, the time can easily double to 4 or more | | | | from start to finish is between 10 to 16 weeks. But |
| months. | | | | remember, you need to make sure the application is |
| Having a complete application is one of the most | | | | complete and to provide the needed documentation |
| important steps to reducing the time for the state to | | | | right away or it could easily turn in to a 9 to 12 month |
| process the application. For example, when you submit | | | | process. |
| a loan to a processor, if the file is missing half of the | | | | |