Connecticut Mortgage Correspondent Lender License

This license is required for any person or entity who is engaged in the business of making residential mortgage loans, or issuing extensions of credit, in their own name which are secured by a mortgage on an interest in one-to-four family owner-occupied residential property located in Connecticut where the loans are not held by such person or entity for more than 90 days and are funded by another person or entity through a warehouse agreement, table funding agreement or similar agreement.

GENERAL INFORMATION Who Is Required to Have This License? Any person engaged in the business of making residential mortgage loans in such person’s own name where the loans are not held by such person for more than 90 days and are funded by another person through a warehouse agreement, table funding agreement or similar agreement. Please see attachment for clarification. Mortgage Correspondent Lenders Funding Who Does Not Need This License? 1. (1) Any bank, out-of-state bank, Connecticut credit union, federal credit union or out-of-state credit union, provided such bank or credit union is federally insured; (2) any wholly-owned subsidiary of any such bank or credit union; (3) any operating subsidiary where each owner of such operating subsidiary is wholly owned by the same such bank or credit union; (4) any person licensed under sections 36a-671 to 36a-671d, inclusive, or exempt from licensure under section 36a-671c, who is negotiating or offering to negotiate terms of a residential mortgage loan as authorized by said sections 36a-671 to 36a-671d, inclusive; and (5) any person engaged solely in providing loan processing or underwriting services to persons (A) licensed as a mortgage lender, mortgage correspondent lender or mortgage broker, or (B) exempt from such licensure under subdivision (1) of this subsection. Each wholly-owned subsidiary of a Connecticut bank or Connecticut credit union that engages in the business of making residential mortgage loans or acts as a mortgage broker in this state shall provide written notification to the commissioner prior to engaging in such activity. 2. Bona fide nonprofit organizations making residential mortgage loans that promote home ownership for the economically disadvantaged. 3. Agencies of the federal government, or any state or municipal government, or any housing finance agency making residential mortgage loans under the specific authority of the laws of any state or the United States. A “housing finance agency” means any authority: (A) Chartered by a state to help meet the affordable housing needs of the residents of the state; (B) supervised directly or indirectly by the state government; (C) subject to audit and review by the state in which it operates; and (D) whose activities make it eligible to be a member of the National Council of State Housing Agencies. 4. Persons or entities making five or fewer residential mortgage loans within twelve consecutive months. 5. Persons licensed under sections 36a-555 to 36a-573, inclusive, when making residential mortgage loans authorized by said sections. 6. Persons owning real property who take back from the buyer of such property a secondary mortgage loan in lieu of any portion of the purchase price of the property. 7. Any corporation or its affiliate that makes residential mortgage loans exclusively for the benefit of its employees or agents. 8. Any corporation, licensed in accordance with section 38a-41, or its affiliate or subsidiary, that makes residential mortgage loans to promote home ownership in urban areas. 9. Persons acting as fiduciaries with respect to any employee pension benefit plan qualified under the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as from time to time amended, who make residential mortgage loans solely to plan participants from plan assets. 10. Persons making secondary mortgage loans to immediate family members. Note: Persons or entities that consider themselves to be a Bona Fide Nonprofit Organization should review section 36a-487(e) of the Connecticut General Statutes as it relates to the definition and requirements of a Bona Fide Nonprofit Organization performing residential mortgage loan activity with Connecticut consumers. Such persons or entities are encouraged to contact the Department of Banking with any questions. Notwithstanding the above-mentioned exemptions, persons and entities exempt from licensure may still be subject to other provisions of law and regulation governing lending activity in Connecticut, including limitations on permissible loan terms. Therefore, please review Part I of Chapter 668 of the Connecticut General Statutes to determine if there are any provisions applicable to the transaction. Activities Authorized Under This License • First Mortgage Brokering • Second Mortgage Brokering • First Mortgage Lending • Second Mortgage Lending • High cost home loans – Broker • High cost home loans – Lender • Home equity lending/lines of credit - Broker • Home equity lending/lines of credit - Lender • Manufactured housing financing - Broker • Manufactured housing financing – Lender • Reverse mortgage brokering • Reverse mortgage lending Pre-Requisites for License Applications • Tangible Net Worth: $50,000 minimum • Bond Amount: $100,000 minimum for first time applicants. Between $100,000 and $500,000 dependent upon the loan volume in Connecticut. • Experience: A person with at least three years of experience in the mortgage business, within the five years immediately preceding the application. A resume or work experience form must be uploaded to NMLS. • Financial Statement: Financial Statement reflecting tangible net worth, which cannot be dated more than 12 months prior to the application date. Note: Any activity subject to licensure shall be conducted from an office located in a state, as defined in section 36a-2. “State” means any state of the United States, the District of Columbia, any territory of the United States, Puerto Rico, Guam, American Samoa, the trust territory of the Pacific Islands, the Virgin Islands and the Northern Mariana Islands.