In Alabama, all mortgage brokers, whether entities or individuals, are required to obtain a license. The licenses are regulated and supervised by the State Banking Department of Alabama.
The license application process for mortgage companies and mortgage loan originators is handled by the Nationwide Mortgage Licensing System (NMLS). This allows companies and individuals to apply, update or renew a license online (for all participating states).
Types of Mortgage Licenses in Alabama
Alabama has three major license types: Company, Branch, and Individual. Mortgage licenses depend on the work you perform. Entities are required to obtain a Mortgage Brokers License and each mortgage loan originator who works for that entity must obtain an Individual License.
In this guide, we’ll cover the most common mortgage license only. You can review the full list on the NMLS website .
Most Common Company License
- Mortgage Brokers License – allows placing, processing and negotiating mortgage loan offers for borrowers on residential properties within the state.
Alabama State Requirements
The documents must be received by the Department within 5 business days of the online application submission at State Banking Department of Alabama, Bureau of Loans, P.O. Box 4600, Montgomery, AL 36103-4600 (US Postal Service). Further information regarding license requirements can be found on the Alabama NMLS page.
For assistance or questions regarding the license requirements you may contact the State Banking Department at 334-242-3452 or send an email to [email protected].
If you have questions regarding the submission process or need assistance with your NMLS account, please contact NMLS Call Center at 1-855-665-7123.
Education and Exams for Licensure
Passing an exam is obligatory for some, but not all AL license types. In order to obtain an Alabama Mortgage Broker License you don’t need to complete a pre-license course or pass a test.
AL Mortgage Broker Bond
Bonds for Company Licenses
- Mortgage Brokers - All Mortgage Brokers License applicants are required to furnish a surety bond. The amount depends on the volume of residential loans closed in the previous year.
- $25,000 bond for loan volume between $0 and $25,000,000.
- $50,000 bond for loan volume between $25,000,001 and $100,000,000.
- $75,000 bond for loan volume exceeding $100,000,000.
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Fees for Company Licenses
- Mortgage Brokers License
The fees are non-refundable and must be submitted via NMLS.
- $700 total licensing fee