Do you want to get a mortgage broker or lender license? Do you need to get it right now? I am often asked how long it will take for the mortgage company to get a mortgage broker or lender license. Unfortunately, depending on which state you’re asking about.
There are less populated states, which also tend to be less popular states, such as Iowa, New Hampshire, Arkansas, and Mississippi, where the first audit takes less than 3 weeks. If the application is perfect, then you have a license in hand in less than one month. The other end of the spectrum is New York, which can take 8 to 9 months, and I’ve never seen a perfect application submitted to New York.
Many times, the problem is that the mortgage business is so eager to get this program to the Banking Department that they fail every document requested or answer any questions. The license reviewers will not let you skip a question or go to one of the requisite back-up documents, ie letters of reference, current accounts, or public or certified bank checks instead of the company’s check for fees. The devil is always in the details. You can not be too detail-oriented when the license application is submitted.
Another issue that slows the application process is the time of year you submit a license application. If the banking department is also in the renewal season, you will experience slower-than-usual time. Several countries have licenses never expire so it is not always the case. However, most states issue licenses that must be renewed every year or every two years. Most licensed departments are under staffed. When renewal season comes around, the reviewer may deduct from new programs and reallocated processing renewal applications. That means a new application sits in the corner for perhaps a month earlier update backlog has been cleared. Or banking department will ask you if you want to wait until all new permits are issued to avoid the need for instant renewal of license that you have held for maybe a month.
If you consult with companies or law firms specializing in mortgage business license and you get the answer to the question “how long it will take,” which sounds much shorter than the answers you’ve been getting from other companies or law firms, find out why they can give you so favorable reply. It is better to know that the process is slow, but to dress up and hire loan officers the license will not be in office for a few months, no matter what you have been promised. But sometimes, the law firm has a good relationship with the application reviewers and critics will be sure that the application is a journey through the audit process.