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Mortgage licensing / Pennsylvania

Pennsylvania Partially Exempt Mortgage Company Registration

company licence · NMLS PAPARTX_C · DBS

Who is required to have this license? The Pennsylvania Mortgage Licensing Act (7 Pa.C.S. § 6101 et seq.) requires a license for any person or company who engages in the mortgage loan business by directly or indirectly negotiating or placing loans for others in the primary market for consideration. This registration is available for any place of business, other than the principle place of business, which is entity exempt from a mortgage business licensing requirement but has employees that are licensed or registered mortgage originators. Partially exempt business entities carrying a bond covering their mortgage originators must file an annual report through NMLS, and therefore must be registered as a "Partially Exempt Mortgage Company" on NMLS. There is no state registration fee associated with using NMLS for this registration. Examples are provide below of business entities that are partially exempt from licensure but must either maintain bond coverage for its mortgage originators and file an annual report with the Department through NMLS or demonstrate in a form acceptable to the Department that all mortgage originators employed by the entity have obtained and maintained bond coverage • • affiliates of banking institutions or state and federally chartered credit unions • subsidiaries of credit unions (not required to provide bond coverage for registered mortgage originators) • consumer discount companies • A bona fide nonprofit organization and employees of the organization acting within the scope of their employment. • An installment seller of, or holder of installment sales contracts secured by, manufactured homes who is licensed under the act of June 28, 1947 (P.L.1110, No.476), known as the Motor Vehicle Sales Finance Act, provided the installment seller or holder only engages in the mortgage loan business regarding installment sales contracts secured by manufactured homes that are purchase-money mortgage loans. • A non-originating person, unless otherwise deemed to be engaged in the mortgage loan business by the department, Who does not need this registration? Examples fohllow of entities that are completely exempt from the MLA’s mortgage licensing requirement, including the requirement of licensing their mortgage originators: • attorneys at law who do not hold themselves out to the public as engaging in the mortgage loan business and who are not compensated by a company or individual in the mortgage business • banking institutions and credit unions; however, their employed mortgage originators must register (not license) through NMLS according to regulations to be issued by federal regulatory agencies • registered mortgage loan originators who are employees of banking institutions, credit unions or their subsidiaries • loan processors and underwriters performing clerical or supportive functions if employed by a mortgage licensee or entity exempt from licensure • employees of a mortgage business who only re-negotiate existing mortgage loans held or serviced by his or her employer unless determined otherwise by HUD or a court of competent jurisdiction • an individual or entity solely involved in offering to make or negotiating extensions of credit relating to timeshare plans • A person who originates or negotiates less than four mortgage loan s in a calendar year, unless determined to be engaged in the mortgage loan business by the department. • Any agency or instrumentality of the Federal Government or a corporation otherwise created by an act of the United States Congress, including the Federal National Mortgage Association, the Government National Mortgage Association, the Veterans' Administration, the Federal Home Loan Mortgage Corporation and the Federal Housing Administration, and employees thereof acting within the scope of their employment. • Any agency or instrumentality of a state or local government, the District of Columbia or any territory of the United States, including the Pennsylvania Housing Finance Agency other governmenant housing finance agencies, and employees thereof acting within the scope of their employment. A separate branch license will be required for every location where mortgage loan business activities are conducted outside the company’s principal place of business. 7 Pa.C.S. § 6131(a.1)

Requirements (24)

  1. Step 1

    Pennsylvania License Application Fee: See the License Requirements and Fees Chart on the NMLS Resource Center for details related to this Requirement. NMLS Initial Processing Fee: See the License Requirements and Fees Chart on the NMLS Resource Center for details related to this Requirement. 7 Pa.C.S. § 6132(a)(4)

    Submitted via: NMLS

  2. Step 2

    Submission of Company Form (MU1): Complete and submit the Company Form (MU1) in NMLS. This form serves as the application for the license through NMLS. 7 Pa.C.S. § 6131(a)

    Submitted via: NMLS

  3. Step 3

    Resident/Registered Agent: The Resident / Registered Agent must be listed under the Resident/Registered Agent section of the Company Form (MU1). 7 Pa.C.S. § 6131(i)(2)

    Submitted via: NMLS

  4. Step 4

    Primary Contact Employees: The following individuals must be entered into the Contact Employees section of the Company Form (MU1). • Primary Company Contact. The person responsible for answering application and licensing questions from the Department. • Primary Consumer Complaint Contact. The person responsible for answering consumer complaints forwarded by the Department. 7 Pa.C.S. § 6131(a)(1)(iv)

    Submitted via: NMLS

  5. Step 5

    Non-Primary Contact Employees: Pennsylvania requires that an individual(s) be identified as a Non-Primary Contact for the following areas. These contacts must be listed in the Contact Employees section of the Company Form (MU1). • Exam Billing • Consumer Complaint (Regulator) • Pre-Exam Contact 7 Pa.C.S. § 6131(a)(1)(iv)

    Submitted via: NMLS

  6. Step 6

    Disclosure Questions: Provide a complete and detailed explanation and document upload for each “Yes” response to Disclosure Questions made by the company (MU1) or related control persons (MU2). See the Company Disclosure Explanations Quick Guide for instructions. 7 Pa.C.S. § 6131(a)(1)(iv), 6133(d, e)

    Submitted via: Upload in NMLS in the Disclosure Explanations section of the Company Form (MU1) or Individual Form (MU2

  7. Step 7

    Qualifying Individual: Each company must appoint a Qualifying Individual on the Company (MU1) Form who: Ø Is a mortgage originator or meets the licensing requirements of a mortgage originator by completing appropriate education and testing Ø Is a management-level officer assigned to the company’s principal place of business. This individual must be listed in the Qualifying Individual section of Company Form (MU1). 7 Pa.C.S. § 6131(k)(5)

    Submitted via: NMLS

  8. Step 8

    Pre-Licensure Education and Testing: Pre-licensure education and testing is required for at least one management level officer assigned to the principal place of business who must also be listed on the NMLS Company Form as a Direct Owner / Executive Officer or Qualifying Individual. Ø Pre-licensure Education: Complete 20 hours of NMLS approved pre-licensure education courses, and 3 hours of Pennsylvania law; the individual’s education record in NMLS must indicate compliance with this requirement. Ø Pre-licensure Testing: One of the following three conditions must be met; the individual’s testing results in NMLS must indicate compliance with this requirement. • Passing results on both the National and Pennsylvania state components of the SAFE test; or • Passing results on both the National and Stand-alone UST components of the SAFE test; or • Passing results on the National Test Component with Uniform State Content. 7 Pa.C.S. § 6131.1; 6131(k)(5)

    Submitted via: NMLS

  9. Step 9

    Control Person (MU2) Attestation: Complete the Individual Form (MU2) in NMLS. This form must be attested to by the applicable control person before it is able to be submitted along with the Company Form (MU1). 7 Pa.C.S. § 6131(a)(1)(iii)

    Submitted via: NMLS

  10. Step 10

    Books and Records: A change in the books and records address to a location other than the principal place of business, when approved by the Department through NMLS, is deemed an approved alternate site recordkeeping location for the purposes of the Mortgage Licensing Act and will furthermore constitute as a valid change or termination of an existing alternate site recordkeeping order. Records stored at an alternate location must be electronically available. Only one books and records location is allowed for Pennsylvania. 7 Pa.C.S. § 6135(a)(2)

    Submitted via: NMLS

  11. Step 11

    Surety Bond:Submit the Pennsylvania-approved company bond in the appropriate amount (see below) furnished by a surety company authorized to conduct business in Pennsylvania. The name and address of the principal insured on the bond must match exactly the full legal business name, including all trade names if applicable, and address of the applicant. Amount Anticipated or Actual Amount of PA Mortgage Loan Originations $100,000 $29,999,999.99 or less $200,000 $30,000,000 - $99,999,999.99 $300,000 $100,000,000 – $249,999,999.99 $500,000 $250,000,000 or more Click here to access the form This document should be named Pennsylvania MLO Surety Bond. 7 Pa.C.S. § 6131(k)(4)

    Submitted via: Upload in NMLS: under Surety Bond in the Document Uploads section of the Company Form (MU1)

  12. Step 12

    Business Plan: Upload a business plan outlining the following information: **Documents below are not required for a 3rd Party mortgage processing company. • Marketing strategies. • Products. • Target markets. • Fee schedule. • Operating structure the applicant intends to employ. • A statement with a detailed breakdown of the portfolio of mortgage loan servicing rights on a nationwide basis, as well as separately for Pennsylvania. The information should reflect the composition of the portfolio based on mortgage servicing rights owned and aggregate number of loans and unpaid principal balance of all 1-4 family residential mortgage loans segregated by sub-servicer. The information provided should be as of the most recent quarter. • Include a complete description of the applicant’s servicing business, stating whether it will service its own loans and/or loans on behalf of others. • A copy of applicant’s servicing policy and procedures, including quality control procedures. • The person or firm responsible for quality control and the experience in quality control. • Sample “hello” and “goodbye” letters. • The name and contact information of the person who will be responsible for the Pennsylvania portfolio of loans. This document should be named Pennsylvania Business Plan. 7 Pa.C.S. § 6131(a)(1)(iv)

    Submitted via: Upload in NMLS: under the Document Type Business Plan in the Document Uploads section of the Company Form (MU1).

  13. Step 13

    If the existing uploaded business plan already includes the above information, an additional document does not need to be uploaded. A company should only upload a single business plan. If state-specific material is required, this information should be added to the existing uploaded business plan.

  14. Step 14

    Internal Policies and Procedures: Upload document(s) including information on staffing and internal organizational policies and procedures. If submitting multiple policies, upload and name each policy separately. The document must include the following information: **Documents below are not required for a 3rd Party mortgage processing company. • General disclosure requirements • Mortgage servicing transfers • Timely escrow payments and treatment of escrow balances • Error resolution procedures • Requests for information • Force-placed insurance • General servicing policies, procedures, and requirements • Early intervention requirements for certain borrowers • Continuity of contact • Loss mitigation procedures • Additional Notices • Consumer Complaint Policy This document should be named [Name of Policy]. 7 Pa.C.S. § 6131(a)(1)(iv); 10 Pa. Code § 59

    Submitted via: Upload in NMLS: under the Document Type Company Staffing and Internal Policies in the Document Uploads section of the Company Form (MU1).

  15. Step 15

    Certificate of Authority/Foreign Registration Statement: Upload proof of registration of the full legal business name with the Pennsylvania Department of State, Corporations Bureau and approved document with the assigned Pennsylvania business entity number that demonstrates authorization to do business Pennsylvania. This document should be named Pennsylvania Certificate of Authority OR Pennsylvania Foreign Registration Statement. 7 Pa.C.S. § 6121(2); 6131(i)(1)

    Submitted via: Upload in NMLS: under the Document Type Certificate of Authority/Good Standing Certificate in the Document Uploads section of the Company Form (MU1).

  16. Step 16

    Other Trade Name: If operating under a name that is different from the applicant’s legal name, that name (“Trade Name”, “Assumed Name” or “DBA”) must be listed under the Other Trade Names section of the Company Form (MU1). Pennsylvania does not limit the number of other trade names. If operating under an “Other Trade Name”, upload proof of registration of the trade name(s) with the Pennsylvania Department of State, Corporations Bureau and approved document with the assigned Pennsylvania business entity number that demonstrates authorization to do business Pennsylvania under that trade name. This document should be named Pennsylvania Trade Name – Assumed Name. 7 Pa.C.S. § 6121(2); 6131(i)(1)

    Submitted via: Upload in NMLS: under the Document Type Trade Name/Assumed Name Registration Certificates in the Document Uploads section of the Company Form (MU1).

  17. Step 17

    Formation Documents: Submit a State-certified copy of the requested applicable documentation detailed below based on your company’s legal status and classification. Include original formation documents and all subsequent amendments, with a list of any name changes. This document should be named Formation Documentation [Date of Creation (MM-DD-YYYY)]. Unincorporated Association: • By-Laws or constitution (including all amendments). General Partnership: • Partnership Agreement (including all amendments). Limited Liability Partnership: • Certificate of Limited Liability Partnership; and • Partnership Agreement (including all amendments). Limited Partnership: • Certificate of Limited Partnership; and • Partnership Agreement (including all amendments). Limited Liability Limited Partnership: • Certificate of Limited Liability Limited Partnership; and • Partnership Agreement (including all amendments). Limited Liability Company (“LLC”): • Articles of Organization (including all amendments); • Operating Agreement (including all amendments); • IRS Form 2553 or IRS Form 8832 if S-corp treatment elected; and • LLC resolution if authority not in operating agreement. Corporation: • Articles of Incorporation (including all amendments); • By-laws (including all amendments), if applicable; • Shareholder Agreement (including all amendments), if applicable; • IRS Form 2553 if S-corp treatment elected; and • Corporate resolution if authority to complete application not in By-Laws or Shareholder Agreement, as amended, as applicable. Not for Profit Corporation • Documents requested of a Corporation; and • Proof of nonprofit status • Internal Revenue Service (“IRS”) 501(c)(3) designation letter; or • statement from a State taxing body or the State attorney general certifying that: (i) the entity is a nonprofit organization operating within the State; and (ii) no part of the entity’s net earnings may lawfully benefit any private shareholder or individual; or • entity's certificate of incorporation or similar document if it clearly establishes the nonprofit status of the applicant; or • Any of the three preceding items described, if that item applies to a State or national parent organization, together with a statement by the State or parent organization that the applicant is a local nonprofit affiliate. Trust (Statutory) • Certificate of Trust; and • Governing instrument (all amendments). 7 Pa.C.S. § 6121(2)

    Submitted via: Upload in NMLS: under Formation Document” in the Document Uploads section of the Company Form (MU1).

  18. Step 18

    Organizational Chart/Description: Submit a chart showing (or a description which includes) the percentage of ownership of: • Direct Owners (total direct ownership percentage must equate to 100%) • Indirect Owners • Subsidiaries and Affiliates of the applicant/licensee This document should be named [Company Legal Name] Organizational Chart – Description. 7 Pa.C.S. § 6131(a)(1)

    Submitted via: Upload in NMLS: under Organizational Chart/Description in the Document Uploads section of the Company Form (MU1).

  19. Step 19

    If the existing uploaded Organizational Chart/Description already includes the above information, an additional document does not need to be uploaded. A company should only upload a single management chart.

  20. Step 20

    Company Memorandum of Tax Certification: Provide a certified memorandum for the company indicating all tax obligations to the Commonwealth of Pennsylvania have been paid or that a deferred payment plan with the Pennsylvania Department of Revenue has been made. Click here to download the Company Tax Waiver and Certification Form. 7 Pa.C.S. § 6133(e)(4)

    Submitted via: Email to:ra-asklicensing@pa.gov

  21. Step 21

    Ability to Repay Analysis: Provide the policies and procedures on how the ability to repay analysis will be performed as required by §46.2 (g) of Chapter 46 Proper Conduct of Lending and Brokering in the Mortgage Loan Business (“the Regulation”). The Regulation can be found under “Laws & Regulations” on the Pennsylvania Department of Banking and Securities website, www.dobs.pa.gov. Questions related to the ability to repay analysis should be directed to mtgexams@pa.gov.

    Submitted via: Email to:ra-asklicensing@pa.gov

  22. Step 22

    Loan Modifications: Will you be conducting, participating in, or advertising any third-party loan modification transactions? • YES o NO

    Submitted via: Email to:ra-asklicensing@pa.gov

  23. Step 23

    Home Improvement: Are you engaged in or providing home improvement services? • YES o NO If yes, are you registered with the Pennsylvania Office of Attorney General? • YES o NO

    Submitted via: Email to:ra-asklicensing@pa.gov

  24. Step 24

    Pennsylvania Remote Location: Definition of a Remote Location: A Location, other than a licensee’s principal place of business or branch, where a mortgage originator sponsored by the licensee, a person excepted from this chapter or excepted from licensure under section 6112 (relating to exceptions to license requirements) or any other employee of the licensee, may engage in licensed activities on the behalf of the licensee under all of the following conditions: • The Licensed activities are conducted under the supervision of the licensee. • The licensee has written policies and procedures for the supervision of personnel working from the location. • Access to the licensee’s platforms and customer information is conducted in accordance with the licensee’s comprehensive written information plan. • In-person consumer interaction does not occur at the remote location if it is his or her personal residence. • The location is not advertised or represented to consumers as an operating location of the licensee or the licensee’s employees who work at the location. • The location is not owned or controlled by the licensee. For the purposes of this definition, a location shall not be considered owned or controlled by a licensee if the location is under the control of a subsidiary or affiliate of the licensee, is primarily used by the subsidiary or affiliate and is only used by the licensee on an incidental basis for the convenience of consumers.

    Submitted via: Email to:ra-asklicensing@pa.gov

General information

GENERAL INFORMATION Activities Authorized Under This License This license authorizes the following activities… • First mortgage brokering • Second mortgage brokering • First mortgage lending • Second mortgage lending • First mortgage servicing • Subordinate lien mortgage servicing • Mortgage loan purchasing • Short sale • Foreclosure consulting/foreclosure rescue • Home equity lending/lines of credit • Reverse mortgage brokering • Reverse mortgage lending • Third party mortgage loan processing • Third party mortgage loan underwriting • Manufactured housing financing • Mortgage loan modifications • Lead generation Pre-Requisites for License Applications • Bond: Obtain and maintain a bond in the amount that will provide coverage for the mortgage originators employed by the company based upon total Pennsylvania loan volume. Bond Amount Anticipated or Actual Amount of PA Mortgage Loan Originations 100,000 $29,999,999.99 or less $200,000 $30,000,000 - $99,999,999.99 $300,000 $100,000,000 - $249,999,999.99 $500,000 $250,000,000 or more • Education and Testing: Pre-licensing education and testing is required for at least one qualifying individual of a mortgage broker company. Pre-licensing education courses and tests will be reviewed and approved by the NMLS and only NMLS approved course providers and testers will be accepted. Approved course providers and testers will be published on the NMLS website. The 20 hours of pre-licensing education requirement for mortgage originators and a mortgage company applicant have a national element and a Pennsylvania-specific element. Pre-education courses must contain the below subject areas: • 3 hours of federal law and regulation • 3 hours of ethics, consumer protection and fair lending • 2 hours of lending standards for the non-traditional mortgage marketplace • 3 hours of Pennsylvania law and regulations • 9 hours of elective courses related to the mortgage industry. The pre-licensing testing requirement will be administered by a NMLS approved test provider and the test will measure the applicant’s knowledge and comprehension in the subject areas of ethics and state/federal mortgage laws and regulations. In order to satisfy the pre-licensing testing requirement, the following condition must be met: Passing score on the National test component which includes the uniform state content. NMLS must indicate compliance with this requirement. Pennsylvania does not issue paper licenses for this license type.

Other Pennsylvania mortgage licenses

Sourced from the NMLS/CSBS state licensing record, last updated June 30, 2025. Requirements change — confirm against the state agency before filing. Not legal advice.

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