Licensing Overview

The Mortgage Licensing Act ("MLA" as codified in NCGS Chapter 53, Article 19B) requires that the NC Commissioner of Banks ("NCCOB") license any person engaged in the business of making or brokering residential mortgage loans. Persons or entities that must be licensed include:

• Mortgage Lenders, which includes all mortgage makers, except Mortgage Brokers who Table-Fund
• Mortgage Brokers
• Mortgage Servicer
• Mortgage Loan Originators
  
  Note: A Mortgage Loan Originator is an individual who for compensation or gain in the expectation of compensation or gain, whether through contact by telephone, by electronic means, by mail, or in person with prospective borrowers, either:

1. Takes a residential mortgage loan application or offers or negotiates terms of a residential mortgage loan,
2. Accepts or offers to accept applications for mortgage loans,
3. Solicits or offers to solicit a mortgage loan,
4. Negotiates the terms or conditions of a mortgage loan, or
5. Issues mortgage loan commitments or interest rate guarantee agreements to prospective borrowers.

Exemption Provisions

Under exemption provisions of the NC SAFE Act, certain mortgage lenders, brokers and their mortgage loan originators are not required to be licensed. Generally, this includes banks, thrifts, credit unions, their wholly-owned subsidiaries and their mortgage loan originators. Employees of exempt entities are not required to file a claim of exemption individually.

Before submitting a MU4 filing, through NMLS, an individual must:

• View the state checklist here prior to applying
• Establish a unique identifier in NMLS
• Review the NC Prelicensing (PE) standards prior to registering for a PE course. 
• Complete the 24 hour prelicensing course from the approved list in the NMLS Course catalog
• Pass the SAFE Act Test which is comprised of two components: A National component and a NC State specific component at an official testing center. See detailed information found in the NMLS Resource Center
• Submit MU4 filing online via the NMLS website (Total fees $202)
• Submit all documentation associated with any "Yes" responses acknowledged on the disclosure questions listed on the MU4 form to: NC Commissioner of Banks; 4309 Mail Service Center, Raleigh, NC  27699-4309.

Mortgage Loan Originators can check on the status of their application/license online by using the licensee search.

Background Investigations

Applicants are subject to investigations of their criminal, civil, educational, employment/business and credit histories. Visit the NMLS for additional information on criminal background checks here.

Filing Fees

The initial license fee for a Mortgage Loan Originator is Two Hundred and Two Dollars (including a $30 NMLS fee) for any portion of a License year ending December 31st and includes the $47 fee to cover the cost of obtaining a credit report and conducting a criminal history check. These fees must be paid through the NMLS system. All fees are non-refundable.