North Carolina Exclusive Mortgage Broker

CONTACT OUR LICENSING STAFF BEFORE APPLYING FOR THIS LICENSE AS IT IS NOT THE TYPICAL LICENSE AND HAS VERY SPECIFIC SPONSORSHIP AND BOND REQUIREMENTS - IF YOU APPLY FOR THIS LICENSE WITHOUT CONTACTING OUR TEAM, YOU MAY BE APPLYING FOR THE INCORRECT TYPE. WE CAN BE REACHED AT (919) 733-4680. This license is required of any individual who acts as a Mortgage Broker exclusively for a single mortgage lender or broker or single exempt person and for compensation or gain, or in the expectation of compensation or gain, either directly or indirectly, accepts or offers to accept an application for a mortgage loan, solicits or offers to solicit a mortgage loan, negotiates the terms or conditions of a mortgage loan, issues mortgage loan commitments or interest rate guarantee agreements to borrowers, or engages in table funding of mortgage loans, whether such acts are done through contact by telephone, by electronic means, by mail, or in person with the borrowers or potential borrowers on residential real property located in North Carolina.

Who Is Required to Have This License? Exclusive Mortgage Broker (EMB) means an individual who acts exclusively as a mortgage broker and shall be an agent for a single mortgage lender or mortgage broker licensee or a single exempt mortgage lender. North Carolina General Statute § 53-244.050(b)(3). This individual shall also be licensed as a mortgage loan originator. NOTE: Typically, mortgage brokers apply through the regular Mortgage Broker License instead of this individual Exclusive Mortgage Broker License. Please contact our agency’s licensing staff with questions about the distinction prior to making application as fees are non-refundable (919) 733-3016. "Mortgage loan originator" means an individual who for compensation or gain or in the expectation of compensation or gain, whether through contact by telephone, electronic means, mail, or in person with prospective borrowers, either: • Takes a residential mortgage loan application, • Accepts or offers to accept applications for mortgage loans, • Solicits or offers to solicit applications for mortgage loans, • Offers or negotiates the terms or conditions of a mortgage loan, or • Issues mortgage loan commitments or interest rate guarantee agreements to prospective borrowers. The license of an EMB is not effective during any period when that person is not authorized to act as such pursuant to North Carolina General Statute § 53-244.050(b)(3). The North Carolina Secure and Fair Enforcement Mortgage Licensing Act (“NC SAFE Act”) defines a “residential mortgage loan or mortgage loan” as any loan made or represented to be made to a natural person or persons primarily for personal, family, or household use that is secured by a mortgage, deed of trust, or other equivalent consensual security interest on a dwelling located within this State or residential real estate upon which is constructed or intended to be constructed a dwelling. Who Does NOT need this License? • Any agency of the federal government or any state or municipal government granting mortgage loans under specific authority of the laws of any state or the United States. • Any employee of a licensed mortgage broker whose responsibilities are limited to clerical and administrative tasks for his or her employer and who does not solicit borrowers, accept applications, or negotiate the terms of loans on behalf of the employer. • Any person authorized to engage in business as a bank, a credit union, savings institution, or a farm credit system, under the laws of the United States, this State, or any other state, upon filing and confirmation of a claim of exemption (form #MLA04) with the Office of the Commissioner of Banks. • A subsidiary owned and controlled by a bank or savings institution and regulated by a federal banking agency, upon filing and confirmation of a claim of exemption (form #MLA04). • Any officer or employee of bank, credit union, savings institution, a farm credit system, or subsidiary of bank, or a savings institution. • Any licensed real estate agent or broker who is performing those activities subject to the regulation of the North Carolina Real Estate Commission. Notwithstanding the above, an exempt person does not include a real estate agent or broker who receives compensation of any kind in connection with the referral, placement, or origination of a mortgage loan. • Any person who, as seller, receives in one calendar year no more than five mortgages, deeds of trust, or other security instruments on real estate as security for a purchase money obligation. What Are the Pre-requisites for Licensure? • Surety Bond Amount: $75,000 Bond per exclusive mortgage broker because an exclusive mortgage broker shall meet the surety bond requirement of a mortgage broker or otherwise be covered by a surety bond provided by the mortgage lender or broker licensee or exempt mortgage lender of the lesser of five million dollars ($5,000,000) or an amount equal to or greater than the sum of the surety bond requirements for each exclusive mortgage broker supervised by the broker or lender. • License: Must obtain a MLO license under the provisions of North Carolina General Statute § 53-244.060. • Affiliation or Agency: An individual licensed as an Exclusive Mortgage Broker must act exclusively for a mortgage lender, mortgage broker, or a single exempt mortgage lender who is licensed under the provisions of General Statute § 53-044.050(b)(3) who shall be responsible for supervising the broker as required by the Article. Sponsorship from the affiliated entity will be required through the NMLS. • Cost of License: $300 application fee plus NMLS processing fee. Fees are non-refundable. NOTE: Typically mortgage brokers apply under the regular mortgage broker license instead of this individual-type Exclusive Mortgage Broker License. Please contact our agency's licensing staff with questions prior to making application as fees are non-refundable. Activities Authorized Under This License This license authorizes the following activities: (NOTE: Only fixed-term, fixed-rate, fully amortizing mortgage loans originated by a single mortgage lender with substantially equal monthly mortgage payments and without a prepayment penalty are authorized under this license type). • First mortgage brokering • Second mortgage brokering • High-cost home loans • Home equity lines of credit • Manufactured housing financing Additional Information: Applications not completed within 30 days of an initial deficiency notification will be deemed withdrawn by applicant and placed in a Withdrawn-Application Abandoned Status. If a third party is assisting you with your application, an authorization form (form #MLA20) must be completed and uploaded to your login on our website to allow us to communicate with the third party. Login credentials can be requested on the site within one business day of application submission. What to Expect After Becoming Licensed • North Carolina issues paper licenses for this license type; they can be printed by the licensee the business day following license approval at: https://www.nccob.gov/online/Login.aspx. The requirements for the display of licenses is in NC General Statute § 53-244.106. Login credentials can be requested on the site within one business day of application submission. • Licenses expire annually on December 31st. Renewal of licenses can be requested through the NMLS November 1st through December 31st (late renewal January 1st through the end of February). Annual assessments are invoiced through the NMLS each September for the prior year of licensure. Information can be viewed in North Carolina General Statute § 53-244.100A. Review your surety bond annually to determine if an increase is required based upon the company’s prior calendar-year North Carolina loan volume. Any increased surety bond required under N.C. General Statute § 53-244.103(b) is to be filed on or before May 31. Document Uploads Guidance Use the checklist below to complete the requirements for the North Carolina Commissioner of Banks. Applications not completed within 30 days of initial deficiency notification will be deemed withdrawn by applicant and be placed in a Withdrawn-Application Abandoned Status.