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  Issue XXXVIIJanuary 17, 2012   
Mortgage Lender Renewal Requirements
Continuing Education
Sworn Notarized Statements
Certificate of Good Standing
Surety Bond
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MORTGAGE LENDER LICENSEES: HAVE YOU COMPLETED YOUR RENEWAL? 

 

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If you have NOT COMPLETED your renewal application, please log in to your account on the NMLS to review all outstanding items that need to be completed in order for your renewal application to be processed.

 

Note the following common incomplete items in renewal applications and provided explanations below to assist you in correcting these deficiencies:
Continuing Education - 8 hrs (including 1hr MD specific)

 

Continuing Education (CE) is the education required to be completed prior to the renewal of the Mortgage Lender license and applies to the manager of the MU1 location and the manager of each MU3 location.

 

COMAR 09.03.06.17 requires the mortgage lender licensee to complete 8 hours of continuing education as a prerequisite to the renewal of the mortgage lender license. In order to renew the license, each "covered employee" (the manager of each corporate office and branch office licensed or required to be licensed by the Commissioner) must successfully complete at least 8 hours of NMLS approved CE (including 1 hour of Maryland specific education).   

 

The individual who is identified as satisfying the CE requirement for a licensed location should be listed as either the Qualifying Individual (on the MU1) or the Branch Manager (on the MU3). 

Sworn Notarized Statements 

 

Provide a sworn notarized statement (signed by an identified control person) indicating the following:

  1. Services offered by the applicant:
    • whether the licensee services loans for persons other than the applicant;
    • whether licensee offers credit repair;
    • whether the licensee negotiates or offers to negotiate loan modification;
    • whether the licensee offers loss mitigation.
  2. Volume of Maryland mortgage business (including lending, brokering and servicing) conducted by the licensee (aggregated for all locations) in the previous twelve (12) months. If the licensee has not conducted a mortgage lending business at any time during the 36 months preceding the application, please also state in the sworn statement. 
Certificate of Good Standing
 
The licensee must be in good standing with the Maryland State Department of Assessment and Taxation (SDAT). The Agency will confirm good standing on the SDAT website. However, if the licensee is not listed in good standing on the website, the licensee must provide a current Certificate of Good Standing, which was issued by SDAT.  
Surety Bond

Each licensee is required to maintain surety bond coverage. The amount is based on the aggregated volume of Maryland mortgage business conducted in the preceding 12 months by the MU1 and MU3 locations. The surety bond coverage shall be at least:

  •  $50,000 if volume is $3,000,000 or less
  • $100,000 if volume is $3,000,000.01 - $10,000,000
  • $150,000 if volume is $10,000,000.01 or more

Generally, each MU1 and MU3 location is covered by a separate bond, but all locations will have the same bond amount.

 

For example, a licensee has three locations which conducted the following Maryland mortgage business during the past 12 months:

Location A - $1,000,000 of Maryland mortgage business

Location B - $0 of Maryland mortgage business

Location C - $4,000,000 of Maryland mortgage business

 

Licensee's volume of business: $1,000,000 + $0 + $4,000,000 = $5,000,000 

 

Location A = $150,000 bond

Location B = $150,000 bond

Location C = $150,000 bond 

 

**However, if a licensee files 5 or more renewal applications at the same time, the licensee may provide a blanket surety bond for all offices in the amount of $750,000.

 

To satisfy this requirement, the licensee should:

  1. provide a copy of the continuation certificate IF NO CHANGES or
  2. provide bond rider( with wet signatures) amending bond amount IF NECESSARY.  
If you have any questions you may contact or Keisha Whitehall Wolfe, Director of Licensing at 410-230-6362.
 

Division of Financial Regulation

Maryland Department of Labor, Licensing and Regulation

500 North Calvert Street, Suite 402

Baltimore, MD21202-3651

410-230-6155 | Office    410-333-0475 | Fax

  

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