How Much Does It Cost To Get A Mortgage License?

When you are looking to get licensed as a mortgagethe bond amount (or $2500).
broker or mortgage banker in additional states, thereThese are all estimates based on huge generalizations,
are 4 main categories of fees, each to be paid toso in order to get an accurate assessment for your
different vendors or entities. Some of these fees willsituation, you would want to contact a surety bond
vary based on who you hire or your credit history, soprovider.
we will address that as we go.Category 3: Foreign Qualifications (Certificate of
Category 1: State Filing FeesAuthority) and Registered Agents
These are the fees you will pay to the state agencyThis expense will normally run you somewhere in the
that oversees mortgage licensing in the state whererange of $500-$550 per state where you want to be
you are applying. These fees will normally be paid inqualified. The biggest factor is how much the state
the form of a check that you will write directly to thecharges for the application fee. On top of that, you will
state agency and include with your completedwant to check to see how much a company is
mortgage license application when you file it. There arecharging your for their service fee to file the application
a few exceptions: You can write in a credit cardand act as your registered agent (if necessary). Our
number on the mortgage license application for ORcompany, American Mortgage Licensing, charges $200
and MD sends you an invoice for the filing fee afterfor the service fee and supplies a Registered Agent
the application has been filed online.for the first 12 months. The state fees average around
One sub-category within state filing fees is what some$150 to $200 per state, some are lower and some are
states call "Licensing fees." Basically, this is where thehigher (TN and TX are very high).
state charges you a fee on the front end when youFor the average situation, an estimate of $400 per
file your mortgage license application (normally calledstate is a pretty good price for a completed and filed
an "investigation fee") and then hits you again onceapplication covering your state fee and your
they approve your application. Off the top of my head,Registered Agent.
I know that IL & MA do this, but I think there are aCategory 4: Mortgage license service fees
few more as well.These are the fees you would pay to a company like
As a whole, state filing fees can range on the high endours if you chose to hire us to run your mortgage
of the $2700 range (NV and IL) all the way down tolicense project. These fees range across the industry
the low hundreds (CA, CO and NM).and typically range based on the number of states you
Category 2: Bond premiumschoose to get licensed in. For example, the fees you
Surety bonds for mortgage license applications canwould pay to AM Licensing would range from $1000
vary from state to state (from not being required todown to $400 depending on how many states you
the $120,000 bond level) but the standard bond for ahired us for.
broker license application is somewhere aroundTotal
$25,000. Since that is the standard, that is the amountSo, when you take all 4 categories into account, you
we will use for our example. If you have decent creditwill normally have to expect an average just over
and strong financial statements, you can expect to$2000 or so per state. This is just an average as
pay somewhere in the range of 1% of the bondsome states are higher (for example, NJ & IL) and
amount ($250) as a yearly premium. This amount willsome states are lower (NM, CA, etc). As I said before,
be required from you before the bond is issued andthese fees will be paid to the different vendors at
will be paid directly to a surety bond company.different times during the process.
Now, if you have shaky credit or if you have a recentI hope all of you are having success in the industry and
bankruptcy, you are more than likely going to have toplease let me know if I can be of any service at all.
pay a much higher percentage, possibly up to 10% of