In the state of Illinois, any entity engaged in the mortgage brokering business for residential properties must obtain a license. The licenses are regulated by the Illinois Department of Financial & Professional Regulation (IDFPR).
The mortgage license application process for companies and individuals is handled by the Nationwide Mortgage Licensing System (NMLS). The system helps mortgage brokers and lenders apply, update, or renew a license.
Types of Mortgage Licenses in Illinois
There are three main types of licenses in Illinois: Company, Branch, and Individual. The most common is the Residential Mortgage license, which is required of companies and entities whose area of business includes brokering and/or originating residential mortgage loans.
In this guide, we’ll only cover information regarding the Residential Mortgage license. You can review the full list of licenses on the NMLS website.
Most Common Company License
- Residential Mortgage License - permits licensees to originate, fund, broker, service, and purchase residential mortgage loans on residential properties within the state of Illinois.
Illinois State Requirements
All license applications must be submitted online through NMLS. Note that you are required to submit all state-specific documents (the Exemption Agreement and Averments of Licensee) directly to IDFPR at [email protected].
For additional help regarding the requirements please contact IDFPR at (888) 473-4858 or [email protected].
For questions regarding NMLS, you may contact NMLS call center at (855) 665-7123.
Education and Exams
Passing an exam is obligatory for some, but not all IL license types. To obtain a Residential Mortgage License, you don’t need to complete a pre-licensing course or pass a test.
IL Mortgage Broker Bonds
Bonds for Company Licenses
- Residential Mortgage License - All license applicants are required to furnish a surety bond. The amount of the bond depends on the dollar amount of residential mortgage loans brokered, originated, or serviced by the licensee during the previous calendar year.
- $25,000 surety bond for 0 - $5,000,000 mortgage loans.
- $50,000 surety bond for $5,000,001 - $20,000,000 mortgage loans.
- $75,000 surety bond for $20,000,001 - $50,000,000 mortgage loans.
- $100,000 surety bond for $50,000,001 - $100,000,000 mortgage loans.
- $150,000 surety bond for loans exceeding $100,000,000.
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Fees for Company Licenses
- Residential Mortgage License
All fees are collected via NMLS and are non-refundable.
- $2,800 total license costs
- $36.25 background check fee
- $15 credit report fee