Puerto Rico Mortgage Broker

Who is required to have this license? Any for-profit or non-profit natural person or legal entity that provides and contracts services to procure, process, or obtain mortgage loans on real estate for third parties in return for a service charge that may be direct, indirect, overt, hidden, or disguised from the person for whom the loan is procured, processed, planned, granted, or obtained as well as from any other person who is part of the transaction and with whom there is a written agreement to such effects. It shall also include any person who helps a consumer obtain or apply for a mortgage loan by giving said consumer guidance about the terms of the loan, preparing the file to grant the loan, and obtaining information on behalf of the consumer. Who does not need this license? The following persons shall not be subject to the provisions of this chapter: (1) banks authorized to operate in Puerto Rico regulated by a federal banking agency; (2) federal agencies; (3) agencies, municipalities, and instrumentalities of the Government of Puerto Rico; (4) retirement systems for the employees of the Government of Puerto Rico and its instrumentalities; (5) insurance companies authorized by the commissioner of insurance of Puerto Rico to do business in Puerto Rico; and (6) persons who, as owners, partners, directors, officials, agents, or employees, are engaged in any business in which obtaining loans or financing for the customers of said business is inherent in, incidental to, or necessary for same, such as businesses that sell or lease goods and services. Pre-requisites for license applications? • Liquid assets of at least $10,000.00 • Liquid assets of at least $5,000.00 for each additional office • Bond for at least $100,000.00 • Bond for at least $5,000.00 for each additional office • Criminal background check for control persons • Credit check for control persons • Experience of control persons • Education of control persons Instructions 1. Each applicant wishing to conduct business in Puerto Rico as a Mortgage Lender/Servicer must file forms MU1 and MU2 through NMLS. 2. Each branch location, wherever located, desiring to conduct business under this license authority must be separately authorized and will require a filing of Form MU3 through NMLS. 3. An on-site manager is required to be appointed for all locations where the licensee conducts business with consumers. This individual may be referred to as the Branch Manager, must be listed as the “Qualifying Individual” on Form MU1, and his/her business address must match the address listed as the “Main Address” on Form MU1. 4. The Resident/Registered Agent section of the MU1 form should be completed with the information currently on record with Puerto Rico’s State Department, OR if the applicant is applying to license an office in the State, the “Qualifying Individual” may be disclosed in the ‘Resident/Registered Agent’ section of Form MU1. 5. MORTGAGE BROKERS are prohibited from using more than one trade name, fictitious name or dba for each license obtained. Therefore, please be advised that applicants may not list more than one name in the “Other Trade Names” section of MU1 for Puerto Rico. If your company is going to operate under more than one name, then each additional name will require an additional license in Puerto Rico. 6. Financial Statements should be submitted through the Filing Tab in NMLS prior to the submission of your Form MU1 filing. For additional help, see the Financial Statement Information Page on the NMLS website. Provide an Audited Financial Statement prepared by a Certified Public Accountant in accordance with Generally Accepted Accounting Principles dated within 90 days of the date of application. Financial statements should include a Balance Sheet, Income Statement and Statement of Cash Flows and all relevant notes thereto. If applicant is a start-up company, only an initial Statement of Condition is required. 7. Total License costs: $1,600.00, including the investigation fee and the NMLS processing fee. If the license is submitted after July 1st of any year, the license fee shall be $1,100.00 for that year, including the investigation fee and the NMLS processing fee. 8. All fees are collected through the NMLS and ARE NOT REFUNDABLE. 9. The regulator will review the filling and all required documents and communicate with you through NMLS. To review your status in NMLS, click the Tasks tab and click Work List. 10. Jurisdiction-specific requirements as identified on the checklist below must be received with this checklist within 5 business days of the electronic submission of your application through the NMLS at the following: For U.S. Postal Service: COMMISSIONER OF FINANCIAL INSTITUTIONS REGULATION AND LICENSING DIVISION PO BOX 11855 SAN JUAN, PR 00910-3855 For Overnight Delivery: COMMISSIONER OF FINANCIAL INSTITUTIONS REGULATION AND LICENSING DIVISION 1492 PONCE DE LEON AVE. SUITE 600 CENTRO EUROPA BLDG. SAN JUAN, PR 00907