Connecticut Mortgage Loan Originator License

This license is required for any individual who for compensation or gain or with the expectation of compensation or gain takes a residential mortgage loan application or offers or negotiates terms of a residential mortgage loan.

Who is required to have this license? An individual who for compensation or gain or with the expectation of compensation or gain, either for such individual or for the person employing or retaining such individual, takes a residential mortgage loan application or offers or negotiates terms of a residential mortgage loan. An individual may not act as an MLO in this state for more than one person at the same time. An applicant for an MLO license must be sponsored by a Connecticut licensed Mortgage Lender, Mortgage Correspondent Lender, Mortgage Broker, or an Exempt Registrant. Who does not need this license? Mortgage Loan Originator (MLO) does not include: • An individual engaged solely as a loan processor or underwriter, as defined in section 36a-485(13) of the C.G.S. However, pursuant to Section 36a-486(b)(3) no individual shall engage in the activities of a loan processor or underwriter unless such individual obtains and maintains a license as a loan processor or underwriter under section 36a-489 of the C.G.S. • A person who only performs real estate brokerage activities and is licensed in accordance with chapter 392 of the C.G.S., unless the person is compensated by a mortgage lender, mortgage correspondent lender, mortgage broker or other MLO or by any agent of such mortgage lender, mortgage correspondent lender, mortgage broker or other MLO. • A person solely involved in extensions of credit relating to timeshare plans, as that term is defined in Paragraph 53D of 11 USC 101. • Any individual who solely renegotiates terms for existing mortgage loans and who does not otherwise act as a MLO, unless the United States Department of Housing and Urban Development, the Bureau of Consumer Financial Protection or a court of competent jurisdiction determines that the S.A.F.E. Mortgage Licensing Act of 2008, 12 USC Section 5101 et seq., requires such individual to be licensed as a MLO under state laws implementing said S.A.F.E. Mortgage Licensing Act. • A registered MLO as defined in subdivision (23) of section 36a-485 of the C.G.S. • An employee of an institution or subsidiary described in subdivision (23) of section 36a-485 of the C.G.S., who is not required to be registered under Section 1507 of the S.A.F.E. Mortgage Licensing Act of 2008, when acting for such institution or subsidiary. • An individual who offers or negotiates the terms of a residential mortgage loan with or on behalf of an immediate family member of such individual. • An individual who offers or negotiates the terms of a residential mortgage loan secured by a dwelling, as defined in Section 103 of the Consumer Credit Protection Act, 15 USC 1602, that served as the individual's residence, unless the context demonstrates that such individual engaged in such activities with a degree of habitualness or repetition. • A licensed attorney who negotiates the terms of a residential mortgage loan on behalf of a client as an ancillary matter to the attorney's representation of the client, unless the attorney is compensated by a mortgage lender, mortgage correspondent lender, mortgage broker or other MLO or by any agent of such mortgage lender, mortgage correspondent lender, mortgage broker or other MLO. • An individual who acts as a MLO as an employee of a federal, state or local government agency or housing finance agency exempt from licensure pursuant to section 36a-487 and who does so only pursuant to such individual’s official duties as an employee of such agency. • An individual who acts as a MLO as an employee of an organization that has obtained bond fide nonprofit status from the commissioner and is exempt from licensure pursuant to section 36a-487 and who does so only pursuant to such individual’s official duties as an employee of such organization. • An individual who offers or negotiates the terms of a residential mortgage loan secured by a dwelling that is not the individual’s residence but is owned by such individual, unless the context demonstrates that such individual engaged in such activities with a degree of habitualness or repetition. An MLO License will not be granted unless the Commissioner finds that the applicant has: • Never had an MLO license or equivalent loan processor or underwriter license revoked in any governmental jurisdiction, except that a subsequent formal vacating of such revocation shall not be deemed a revocation; • Not been convicted of, or pled guilty or nolo contendere to, a felony in a domestic, foreign or military court during the seven-year period preceding the date of the application for licensing, or at any time preceding such date of application if such felony involved an act of fraud, dishonesty, a breach of trust, or money laundering, provided any pardon of a conviction shall not be considered a conviction; • Demonstrated financial responsibility, character and general fitness so as to command the confidence of the community and to warrant a determination that the MLO will operate honestly, fairly and efficiently; • Completed the pre-licensing education requirement described in section 36a-489a and passed a written test that meets the test requirement described in section 36a-489a; • Not made a material misstatement in the application; • Met the surety bond requirement under section 36a-492. Financial Responsibility Requirement Section 36a-489(c) of the CGS explains that a person is not financially responsible when such person has shown a disregard in the management of such person’s own financial condition. A determination that a person has not shown financial responsibility may include, but is not limited to: • Current outstanding judgments, except judgements solely as a result of medical expenses; • Current outstanding tax liens or other government liens and filings; • Foreclosures during the three years preceding the date of application for an initial license; • A pattern of seriously delinquent accounts within the past three years. Pre-Requisites for License Applications • Authorization for Credit Report • Authorization for Criminal Background Check • Completion of 21 hours of NMLS-approved Pre-Licensure Education courses (1 hour must be a CT DOB Defined Elective) • Must satisfy one of the following three conditions related to testing: • Passing score on both the National and Connecticut State components of the SAFE Test, or • Passing score on both the National and Stand-alone UST components of the SAFE Test, or • Passing score on the National Test Component with Uniform State Content Note: The regulator will review the filing and all required documents and communicate with you through NMLS. Pursuant to Section 36a-489 of the Connecticut General Statutes, please be advised that your application shall be deemed abandoned if the required information is not submitted within 60 days of the notification. 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.