New York Mortgage Broker License Guide

In New York, anyone engaged in the mortgage loan business must obtain a license or registration at the state level. The New York Department of Financial Services regulates and supervises all licenses.

The license application process for entities and individuals is handled by the Nationwide Mortgage Licensing System (NMLS). NMLS allows mortgage companies and loan originators to apply, update or renew a license online.

If you'd like assistance with the licensing process, our mortgage broker licensing partner can make the process seamless for you; learn more here.

The state of New York has three major state license types: Company, Branch, and Individual. Each license type depends on the work you are going to perform. In NY, companies engaged in the mortgage brokering and mortgage loan servicing business are required to obtain a registration.

In this guide, we’ll cover the most common licenses only. You can review the full list on the NMLS website.

Most Common Company Licenses

• Mortgage Banker License - allows companies and sole proprietorships to advance funds and/or issue commitments to make mortgage loans. Note that the license is required of companies that, within a one year period, make three or more mortgage loans or five or more mortgage loans in a two year period on residential properties located within NY.
• Mortgage Broker Registration - allows companies and sole proprietorships to accept, solicit, process, or negotiate mortgage loans (on residential NY properties) with lenders on behalf of third parties.
• Mortgage Loan Servicer Registration - permits companies and sole proprietorships to receive payments from borrowers (in regards to mortgage loans) and make payments to borrowers for conversion mortgages.

Most Common Individual Licenses

• Mortgage Loan Originator License - allows individuals to take mortgage loan applications and/or negotiate the terms of the mortgage loans for residential properties.

All license applications must be submitted through the NMLS website. Please note that some documents, such as the surety bond form, must be mailed directly to the Department of Financial Services.

Mortgage Banker, Mortgage Broker, and Mortgage Loan Servicer applicants, please mail your documentation to New York State Department of Financial Services, Attention: Mortgage Banking - Application Unit, One State Street, New York, NY 10004.

Mortgage Loan Originator applicants, please mail your documentation to New York State Department of Financial Services, Attention: Mortgage Banking - MLO Application, One State Street, New York, NY 10004.

For assistance or further information regarding license requirements you may contact NY DFS at one of the following:

• For Mortgage Banker License - [email protected]
• For Mortgage Broker Registration - [email protected]
• For Mortgage Loan Servicer Registration - [email protected]
• For Mortgage Loan Originator License - [email protected]

For NMLS-related questions, please contact their call center at (855) 665-7123.

In New York, passing an exam is obligatory for some, but not all licenses. To obtain an NY Mortgage Loan Originator license, you must complete an education course and pass an examination.

Exams for Individual Licenses

• Mortgage Loan Originator License - To obtain an individual license in New York, you must first complete an NMLS-approved pre-licensure education course of at least 20 hours. The course must include 3 hours of state-specific content. For further information, as well as a list of approved providers, please visit the NMLS Education page.
   

  Upon completion of the education course, you can enroll for the test and pay the fee on NMLS. You can schedule an exam date via your NMLS profile or by contacting the exam administrator Prometric at (877) 671-6657.

  Additional information on how to schedule and take the Mortgage Loan Originator test can be found on the NMLS testing page.

Note: The surety bond is required upon approval of your application. Your license/registration will not be issued until the bond has been received and accepted.

Bonds for Company Licenses

• Mortgage Banker License - License applicants must mail an original surety bond in the amount of $50,000 to the Department. The bond must be issued on the NY mortgage banker surety bond form. You can find the form on the Department’s Forms and Resources page.
• Mortgage Broker Registration - Applicants must furnish a $10,000 mortgage broker surety bond. Applicants are required to use the NY mortgage broker surety bond form found on the Department’s Forms and Resources page.
• Mortgage Loan Servicer Registration - Each applicant is required to mail a $250,000 surety bond, issued on the NY mortgage loan servicer surety bond form. The bond form can be accessed through the Department’s Forms and Resources page.

Bonds for Individual Licenses

• Mortgage Loan Originator License - If the applicant is an employee of a mortgage loan originating entity, the employer may furnish an Originating Entity Surety bond on behalf of the applicant. In this case, the bond amount is based on the number of employed Mortgage Loan Originators.
  • $100,000 surety bond for less than 10 loan originator employees.
  • $150,000 surety bond for 10-15 loan originator employees.
  • $250,000 surety bond for 16-24 loan originator employees.
  • $500,000 surety bond for more than 25 loan originator employees.

  If the applicant is not covered by the employer, they must mail an Individual Mortgage Loan Originator surety bond. The amount of the bond depends on the applicant’s volume of NY loans originated during the previous year.

  • $10,000 surety bond for loan volume up to $1,000,000.
  • $15,000 surety bond for loan volume between $1,000,000 - $7,499,999.
  • $25,000 surety bond for loan volume between $7,500,000 - $14,999,999.
  • $50,000 surety bond for loan volume between $15,000,000 - $29,999,999.
  • $75,000 surety bond for loan volume between $30,000,000 - $49,999,999.
  • $100,000 surety bond for loan volume over $50,000,000.

Fees for Company Licenses

Fees paid through NMLS are not refundable.

• Mortgage Banker License
  • $3,000 investigation fee (payable to NMLS).
  • $100 NMLS processing fee (payable to NMLS).
  • $15 credit report fee (payable to NMLS).
  • $99 fingerprint fee (payable to Morpho Trust USA).
• Mortgage Broker Registration
  • $1,500 investigation fee (payable to NMLS).
  • $100 NMLS processing fee (payable to NMLS).
  • $15 credit report fee (payable to NMLS).
  • $99 fingerprint fee (payable to Morpho Trust USA).
• Mortgage Loan Servicer License
  • $3,000 investigation fee (payable to NMLS).
  • $100 NMLS processing fee (payable to NMLS).
  • $15 credit report fee (payable to NMLS).
  • $99 fingerprint fee (payable to Morpho Trust USA).

Fees for Individual Licenses

• Mortgage Loan Originator License
  • $125 investigation fee (payable to NMLS).
  • $254 license fee (payable to NMLS).
  • $30 NMLS processing fee (payable to NMLS).
  • $15 credit report fee (payable to NMLS).
  • $36.25 FBI background check (payable to NMLS).
  • $100 exam fee (payable to NMLS).
  • $99 fingerprint fee (payable to Morpho Trust USA).