Loan Officers can be sponsored by Loan Factory in 48 states (except Connecticut and New York)

LICENSED IN MULTIPLE STATES AND SPONSORED BY DIFFERENT MORTGAGE COMPANIES

DID YOU KNOW?

Loan Officers (even brokers) can be licensed in multiple states and sponsored by different mortgage companies.

  1. General Rule:
    In each state, a Loan Officer can only be sponsored by one mortgage company.
  2. Exceptions:
    In CO, DE, ME, MN, TX, and WA, Loan Officers can have multiple sponsors.
  3. Special States:
    In GA, MT, OH, OR and PA, a Loan Officer can be sponsored by Loan Factory. The Loan Officer cannot be sponsored (in any 50 states) by any other mortgage company who has a license in these states.
    In SC, a Loan Officer cannot be sponsored (in any 50 states) by any other mortgage company in any other state.
    In VA, if a Loan Officer wants to get paid in 1099, LO must sign an Exclusive Agent Agreement with Loan Factory. The LO cannot work with any other mortgage company, in any state.

ADDING NEW STATE LICENSES

If you are CURRENTLY licensed and want to obtain a license in more states, you DO NOT need to pass the exam again

Step 1

Pick an Interested State

Select the state where you want to obtain a license. You will see the number of hours of required for a state-specific course that you must take in order to obtain a license. In general, you do not need to pass the exam again.
The following states do not require additional hours (you can skip to step 3 below):

Arizona

Florida

Kansas

California (W-2)

Georgia (W-2)

Wisconsin

Delaware

Texas (W-2)

Step 2

Register and Complete the State-Specific Course.

Go to www.mortgage-education.com to register. Make sure to click on the correct button (see below) and select the state. Each hour costs $15. Therefore, if you need to take a 3-hour course, it will cost you $45.

Step 3

Apply for the State License on NMLS

Step 4

Request Sponsorship

See below for the steps to request NMLS Sponsorship from Loan Factory

REQUEST NMLS SPONSORSHIP FROM LOAN FACTORY

Follow these steps to sign up with Loan Factory:

Step 1

Step 2

Remove your relationship with your current employer by entering an end date for your prior employment, and submit a new MU4 to add Loan Factory as your employer.

Step 3

Request NMLS Sponsorship from Loan Factory (NMLS #: 320841). Loan Factory will be notified and will proceed with sponsoring you

Step 4

Resolve any active license items that the state requests. (You must log in regularly to check NMLS and clear any requests from the state. Once complete, it will take the regulator around 5-7 days to approve.)

HOW LONG WOULD IT TAKE FOR LOAN FACTORY TO SPONSOR MY LICENSED?

  • Alaska: 30 calendar days
  • Alabama: 34 calendar days
  • Arkansas: 1 calendar day
  • Colorado: 28 calendar days

Temporary Authority Checklist

  • Have you been state-licensed for at least 30 days or federally registered for 1 year prior?
  • Do you have a current W-2 classification status reflected in your NMLS record?
  • Has your license ever been revoked, suspended, denied, or subject to a cease and desist order?

Essentially, if you are currently a W-2 loan officer (with Loan Factory or another broker/lender) in good standing, you can apply for a license in another state. As long as you complete the license application with the NMLS, you can likely begin originating immediately. You do not have to wait for state approval (which normally takes 3-20 business days).

Temporary checklist

SUPERVISORY DISTANCE REQUIREMENTS

There are a few states require supervisory distance between MLO's residence and current sponsoring office location (our office):

  • Mississippi: 125 miles
  • South Carolina: 75 miles
  • Wisconsin: 100 miles
  • Wyoming: 100 miles
  • Nebraska: The Department does have a commutable distance requirement in place. While there is no specific mileage figure, the Department requires that all commutable distances be reasonable in nature. Where a commute distance could lead to potential issues, the mortgage banker and/or MLO should be prepared to answer any questions or provide explanations or clarification regarding the commute to and from the associated licensed location.
  • New Jersey: The Department considers a reasonable commuting distance to be 2.5 hours of the assigned location
  • Rhode Island: The remote location is the employee’s residence or other location identified in the records of the licensee and is within a reasonable distance of a place of business named in the licensee’s license or branch certificate, as established by regulations adopted by the director or the director’s designee.

COMPENSATION TYPES

  • A loan officer must be classified as either W-2 or 1099 (cannot be both).
  • In these 13 states, the Loan Officer must be classified as W-2 Loan Officer:  GA (Georgia), IL (Illinois), ME (Maine) , MA (Massachusetts), MD (Maryland), MS (Mississippi), MT(Montana), NV (Nevada), NJ (New Jersey), NC (North Carolina), SC (South Carolina), RI (Rhode Island), and VT (Vermont).

1099 Compensation
A Loan Officer will receive 100% of the commission from every deal they close. Loan Factory will charge a flat fee of $595 for each deal, in addition to a processing fee of $500.
W2 Compensation

A Loan Officer will receive 90% of the commission from every deal they close, but first, they need to pay a flat fee of $595 and a processing fee of $500.

Remember, loan officers must also pay any payroll taxes themselves.

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