Aspiring mortgage brokers in Florida must meet all licensing requirements by the state’s Office of Financial Regulation. Applicants must be also aware of the process handled by the Nationwide Mortgage Licensing System and Registry (NMLS).
It’s possible to apply for an NMLS license online in Florida. You could choose between online self-help lessons or online student courses, while there are available live classroom sessions as well. Remember that a mortgage broker has a different role from a mortgage lender, but the business for both seems stable.
As of April, median sales for single-family houses increased 6.2% year over year, according to Florida Realtors data.
What You Need
You have to complete different forms for a licensing application such as the MU1 and MU2 forms, which you can get from the NMLS website. Applicants must answer all disclosure questions in these forms, aside from providing your criminal history background on a state and federal level. Don’t forget to include information about your state-licensed principal loan originator.
The number of people in a planned brokerage business will also matter for the application. The state requires each control person to submit MU2 forms and their corresponding criminal records and credit reports. An MU3 form will be necessary only when you intend to open more than one branch of your business in the state.
Cost of Application
Florida streamlined the application process for mortgage brokers after it removed a surety bond requirement. You should, however, expect to spend $425 for the application fee and $100 for the NMLS processing fee. A background check and credit report for every control person will cost $38.75 and $15, respectively.
Those who like to operate multiple branches must pay $225 for the licensing fee and $20 for NMLS processing fee. Some of the recurring expenses for mortgage brokers in Florida include a $375 renewal fee for your primary license and $225 for broker branch licenses. You should do this before the end of each year. Late renewals will cost an additional payment of $250 for reinstating your primary license and $225 for broker branches.
The Difference Between Brokers and Lenders
Most consumers often confuse mortgage brokers with lending companies but the distinct difference lies on the former being a middleman for the former. A lending company offers loans and underwrites them. It also sets the lending criteria for each borrower. On the other hand, licensed brokers collect a mortgage applicant’s information and documents.
They also help applicants with finding the best interest rate and terms for their home loan, although this is only possible when they work for an independent lending firm. For this reason, aspiring mortgage brokers must be well-educated on Florida’s housing market and be knowledgeable on advising clients about matters related to their credit scores and finances.
A brokerage firm in the mortgage industry can be a lucrative business in Florida because of the steady demand for residential properties. You can increase your chances of gaining approval for a licensing application by signing up for educational courses.