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Issue XLIX
December 23, 2013



Your Renewal Application May Be Denied


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Your Maryland Mortgage Lender License renewal application is INCOMPLETE.


You must promptly correct all deficiencies so that you and your originators can continue to operate in 2014.  If you fail to submit all required documentation, you may be prohibited from doing business in 2014.


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.


Also, note that failure of MU1 and MU3 licensees to properly renew will result in your Maryland mortgage loan originators being prohibited from originating for your company in 2014 as it is a violation of Maryland law to originate for an unlicensed mortgage lender.


Note the following common incomplete items in renewal applications:


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. 


*Note: Unless it has already been done, the company also needs to upload the Original Surety Bond in the NMLS file.  Each branch location needs the proper bond documentation in the NMLS file as well. 


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.  


Sworn Notarized Statements 


A notarized affidavit providing the volume of Maryland mortgage loans closed during the last 12 months (upload with bond verification certificate, copy of bond rider or copy of new bond).


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 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). 



If you have any questions you may contact Juan M. Sempertegui, Director of Licensing at 410-230-6102.



Maryland State offices will be closed on

December 24th, December 25th, December 31st and January 1st.


Office of the Commissioner of Financial Regulation

Maryland Department of Labor, Licensing and Regulation

500 North Calvert Street, Suite 402

Baltimore, MD 21202-3651

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


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