hud-fha branch requirements - equity prime...

HUD / FHA Branch Requirements

REV 12/26/12 RO This is an internal EPM document and not meant for public or consumer information. 1

Table of Contents

Section Page(s) HUD/Federal Requirements 2-5Alabama 6 California 7 Colorado 8 Connecticut 9 Delaware 10 District of Columbia 11 Florida 12 Georgia 13-14Hawaii 15 Illinois 16-17Louisiana 18 Maryland 19-20Massachusetts 21 Michigan 22 Minnesota 23 Missouri 24 Nevada 25-27New Jersey 28-30New Mexico 31 New York 32-32North Carolina 33-34Ohio 35-37Oregon 38 Pennsylvania 39 South Carolina 40-41Tennessee 42 Texas 43-44Utah 45 Virginia 46 Washington 47-48



FHA/HUD Office requirements

G. Full Time, Part Time and Outside Employment.A mortgagee may employ staff full time or part time (less than the normal 40 hour work week). They may haveother employment including self employment. However, such outside employment may not be in mortgagelending, real estate, or a related field. Direct endorsement underwriters are included in this provision. Anunderwriter may not work on a part time basis for any other mortgagee, even underwriting conventionalmortgage loans. An underwriter may not underwrite loans for a parent or subsidiary of the underwritersapproved employer. A direct endorsement underwriters authority is through the employer and does not extendunder any corporate umbrella.

2-11 Office Facilities.The mortgagee may conduct its loan origination and/or servicing activities from any approved andadequately staffed office. A mortgagee is fully responsible for the actions of its offices. Mortgageesthat lease space from a real estate agent must assure compliance with RESPA requirements.

A. Home office.Each applicant must identify which location they consider their main or home office for FHAmortgage activities. It doesn’t have to be the entity’s corporate office. A mortgagees home officefacility must:

1. Have adequate office space and equipment;2. Be in a location conducive to mortgage lending;3. Be located in a commercial space that is separate and apart from anyother entity. A mortgagee may share general reception-type entrances orlobbies with another business;4. Be clearly identified to the public so that loan applicants andmortgagors will know, at all times, exactly with whom they are doingbusiness. This includes a permanently affixed business sign and othercommon means of identification used by a business entity;5. Display a fair housing poster;

B. Traditional branch office.A traditional branch office is a separately located unit of the mortgagee in commercial space. Atraditional branchoffice must:

1. Have adequate office space and equipment;2. Be in a location conducive to mortgage lending;3. Be separated from any other entity by walls or partitions.(Entrances and reception areas may be shared.);4. Be identified to the public;5. Display a fair housing poster;6. Provide privacy for conducting interviews; and

C. Nontraditional branch office.A nontraditional branch office is required to meet branch office staffing requirements and thefollowing requirements concerning office facilities:



1. It may be located in non-commercial space, but it must have adequate office space andequipment and must conform to the local government use requirements.2. It must display a fair housing poster if the public is ever received.

A. Home office.The mortgagee must have a home office staff of at least two full time employees. A sharedreceptionist, while permitted, may not be used to meet this requirement.

B. Branch office.A mortgagee must have at least one full time employee at each branch office. A manager must beassigned to each traditional and nontraditional branch office. A separate manager must be locatedat each direct lending branch.

C. Branch Managers, Loan Officers and Underwriters.Loan officers (also known as loan originators) of FHA-insured mortgages must be employees ofthe mortgagee. Underwriters of FHA-insured mortgages must be employees of the mortgagee; itsauthorized agent; or, if the mortgagee is a loan correspondent, its sponsors. Managers, loanoriginators and underwriters may not be independent contractors or contract employees.

D. Centralized Centers.Processing and/or underwriting functions may be centralized in any office(s) of the mortgagee orperformed at each office of the mortgagee.

E. Certain Employment Agreements.A FHA approved mortgagee must pay all of its operating expenses including the compensation ofall employees of its main and branch offices. Other operating expenses that must be paid by theFHA approved mortgagee include, but are not limited to, equipment, furniture, office rent, utilitiesand other similar expenses incurred in operating a mortgage lending business. A branchcompensation plan that includes the payment of operating expenses by the branch manager, anyother employee or by a third party is a prohibited arrangement. The following includes some, butnot all, examples of unacceptable provisions in employment agreements: * Require all contractualrelationships with vendors such as leases, telephones, utilities, and advertising to be in the nameof the employee (branch) and not in the name of the FHA approved mortgagee; * Require theemployee (branch) to indemnify the FHA approved mortgagee if it incurs damages from anyapparent, express, or implied agency representation by or through the employees (branches’)actions; and * Require the employee (branch) to issue a personal check to cover operatingexpenses if funds are not available from an operating account.

F. Fair housing posters.A mortgagee must post and maintain a fair housing poster at each place of business thatparticipates in activitiescovered by Section 805 of the Fair Housing Act (i.e. making or purchasing of loans or providingother financial assistance: a) for purchasing, constructing, improving, repairing, or maintaining adwelling; or b) á secured by residential real estate). Fair housing posters must be prominentlydisplayed so as to be readily apparent to all persons seeking residential real estate relatedtransactions or brokerage services.



C. Branch Office Operations.1. Compliance Requirement. A mortgagee may maintain one or more branch offices for the

submission of applications for mortgage insurance. A traditional branch office is aseparately located unit of the mortgagee in an office in which no business except that ofthe mortgagee is conducted. It may be located in the mortgagee’s home office. Inaddition, a mortgagee may register a branch office that does not meet the requirements ofa traditional branch office (nontraditional branch office). The mortgagee may determinethe location and type of its branch office facilities. The nontraditional branch office facilitymay be located in either commercial or noncommercial space. Each branch office mustbe registered by HUD. A loan correspondent is also permitted to establish branch officesin accordance with 24 CFR 202.5(k) (HUD Handbook 4060.1, paragraph 2-11 B and C).*An approved mortgagee is prohibited from engaging an existing, separate mortgagecompany or broker to function as a branch of the approved mortgagee and allowing thatseparate entity to originate insured mortgages under the approved mortgagee’s FHAmortgagee number. This constitutes a prohibited branch arrangement2. Separate entitiesmay not operate as “branches” or “DBAs” of a FHA approved mortgagee (HUD Handbook4060.1, paragraph 2-14 A).The direct lending branch office must meet the office facilities and staff requirements of atraditional branch office except that it must have a separate manager and can becollocated with a lender’s home office or one of its traditional branches (HUD Handbook4060.1, paragraph 2-11 D). *

2. Suggested Audit Procedures.a. Determine whether all branches are registered with HUD by reviewing the appropriate

form or screen printout.b. Through inquiry and/or physical observation, determine whether the branch is a true

branch and is not a subsidiary, independent contractor, agent of the auditee, orseparate entity. A mortgagee with a separate tax ID number is required to haveapproval as a mortgagee in its own right. A branch must have at least one employee*(a W-2 employee)* including, a branch manager. The branch manager can managemore than one branch except if the branch is a direct lending branch, which must havea separate manager. The branch office must have its own telephone and maintain itsown accounting records.

c. Review auditee’s payroll records for indications of any branch office personnel, exceptthe receptionist, who are not employed exclusively by the auditee at any given time.Inquire of personnel to determine whether branch employees conduct only thebusiness affairs of that entity during normal business hours.

d. Determine whether the branch office (1) is located in space which is separated by apartition from any other entity, (2) is clearly identified to the public, (3) operating costsare paid by the approved mortgagee or loan correspondent, (4) display the “fairhousing poster”, (5) provides privacy for conducting interviews and (6) has adequatespace and equipment.

e. Review company records for evidence that the present branch office manager is acorporate officer or an employee authorized to bind the corporation in mattersinvolving loan origination and servicing and whether the branch office manager of adirect lending branch office only manages that branch.



f. *During the period under audit, if a separate entity was purchased and legally mergedinto the approved mortgagee, determine if a copy of the merger documents and statelicense (s) were provided to FHA’s Lender Approval and Recertification Division.*



State Branch Office Requirements: Alabama

Alabama Consumer Credit Code

The Alabama Consumer Credit Code (ACCA) does not require that lenders maintain an office in Alabama. Ala. Code §5-19-22(a).

The license must be posted conspicuously in the place of business of the lender, and may not be moved to another office or location without the Department’s permission. Id. at §5-19-22(g). Each licensed location must keep on hand a copy of the ACCA and all current ACCA regulations. Ala. Admin. Code r. 155-2-2-.05.

A lender may not establish or conduct any other business in the same physical location as the licensed place of business without first obtaining approval from the Department. Any other business must be conducted in a manner that does not involve an evasion or violation of the ACCA. The lender must maintain a copy of any written permission or non-objection letter issued by the Department at each licensed location. Ala. Admin. Code r. 155-2-2-.08.

Mortgage Brokers Licensing Act

A mortgage broker is not required to maintain an office in Alabama. A mortgage broker may transact business from both a principal place of business and 1 or more branch offices provided each is licensed under the Mortgage Brokers Licensing Act. Ala. Code §5-25-11.

A principal place of business or branch office must have at least 1 enclosed room or building of stationary construction where negotiations of mortgage loan transactions may be conducted in privacy, and in which all of the books, records, and files pertaining to mortgage loan transactions are maintained. Id.

Each principal place of business and branch office must comply with local zoning ordinances and display any occupational licenses required by local government agencies. Id.

It is the mortgage broker's responsibility to meet local zoning ordinances and obtain the required occupational licenses; however, zoning for the principal place of business or the branch office may not be residential. Id.

Mortgage broker licenses must be posted in a conspicuous place at each location. Ala. Code §5-25-8(b).



State Branch Office Requirements: California

California Finance Lenders Law

Each branch office must be separately licensed. Cal. Fin. Code §22152.

A licensee may not conduct the business of making loans in any office, room, or place of business where other business is solicited or engaged in except as authorized in writing by the Commissioner. This restriction does not apply to finance lenders making a loan with a principal amount of $10,000 or more. Cal. Fin. Code §§22154(a); 22250(a).

A finance lender or broker license, along with order approving the use of a different name, must be conspicuously posted in the place of business authorized by the license. Cal. Fin. Code §22151(a).

In addition, the license of every mortgage loan originator employed by a finance lender or broker must be conspicuously posted in the place of business authorized by the license. Id.

Real Estate Law

A licensed real estate broker must maintain an office in California which must serve as the office for the transaction of business. The license must be displayed in the office, and any personal consultations with clients must be held at the in-state office. If the licensee wishes to maintain more than 1 place of business in California, additional licenses for any such branch office must be obtained. Cal. Bus. & Prof. Code §10162.

The license certificate of any real estate salesperson employed by a real estate broker must be retained at the main business office of the real estate broker, and upon the termination of employment of the salesperson, the broker must return the license certificate to the salesperson within 3 business days after termination. Cal. Code Regs. tit. 10, §2753.

California Residential Mortgage Lending Act

A licensee must post the licensee's license and any currently effective order of the Commissioner approving use of a different name in a conspicuous place in the business location authorized by the license. Cal. Fin. Code §50207(a).



State Branch Office Requirements:

Colorado

Uniform Consumer Credit Code

The Uniform Consumer Credit Code does not require that an in-state office be maintained. However, if an in-state office is not maintained, an agent for service of process must be designated and located in Colorado. The agent must be a resident of Colorado or a corporation authorized to do business in Colorado. The designation of the agent must be in writing and filed with the secretary of state. If no designation is made and filed or if process cannot be served in Colorado upon the designated agent, process may be served upon the secretary of state. However, service upon the secretary of state is not effective unless the plaintiff immediately mails a copy of the process and pleading by registered or certified mail to the defendant at his or her last reasonable ascertainable address. Colo. Rev. Stat. Ann. §5-1-203(2).

If a supervised lender has more than 1 place of business, it must obtain a master license. The Administrator may authorize the addition of branch locations to the master license. A separate license fee and proof of financial responsibility will be required for each authorized branch location. Upon receipt of a completed branch location license application and the required license fee, the branch location is automatically licensed for a temporary period not to exceed 120 days. If the Administrator does not deny the branch location application on or before the end of that period, the temporary branch location license will become permanent. The Administrator's approval of an additional branch location license may be provided by letter; no license certificate need be issued. Colo. Rev. Stat. Ann. §5-2-302.

A licensee may not engage in the business of making supervised loans under any name other than that in the license or at any place of business for which the licensee does not hold a license. Id. at §5-2-302(7).

Mortgage Loan Originator Licensing And Mortgage Company Registration Act

The Mortgage Loan Originator Licensing And Mortgage Company Registration Act does not require a mortgage broker or loan originator to maintain an in-state office.




Connecticut

Nondepository Mortgage Lenders and Brokers Act

The Nondepository Mortgage Lenders and Brokers Act does not require that a lenders, correspondent lenders or brokers maintain an office in Connecticut.




Delaware

Licensed Lenders Act

The Licensed Lenders Act (LLA) does not require that mortgage lenders maintain an office in Delaware. However, a mortgage lender must provide the name and address of a resident agent who can accept legal service-of-process papers on the lender's behalf. See http://banking.delaware.gov/faqs/licfaqs.shtml.

A mortgage lender must prominently post a copy of the license issued under the LLA in each place of business of the mortgage lender. A mortgage lender may not maintain an office at any other location than that designated in the license. Del. Code Ann. tit. 5, §2206(a).

Each office licensed under the LLA must possess copies of all applicable regulations of the LLA. The manager and staff of each office must familiarize themselves with such regulations. The mortgage lender must inform the Commissioner if copies of the regulations are lost or misplaced and replacements will be furnished. Code Del. Regs. 5 2201(2.1), (2.2).

Mortgage Loan Brokers Act

The Mortgage Loan Brokers Act (MLBA) does not require that mortgage loan brokers maintain an office in Delaware. However, a mortgage broker must provide the name and address of a resident agent who can accept legal service-of-process papers on the broker's behalf. See http://banking.delaware.gov/faqs/licfaqs.shtml.

A mortgage broker must obtain a license for each office or other place of business from which its mortgage loan brokerage business is conducted. Such license must be posted in a prominent position in the designated place of business of the mortgage broker. Del. Code Ann. tit. 5, §2106.

Each office licensed under the MLBA must maintain copies of all applicable regulations of the MLBA. The manager and staff of each office must familiarize themselves with all such regulations. The licensee must inform the Commissioner if copies of the regulations are lost or misplaced and replacements will be furnished. Code Del. Regs. 5 2101(2.1), (2.2).




District of Columbia

Mortgage Lenders and Brokers Act

A license may be issued to a business entity whose principal office is located outside the District, provided that the business entity maintains a resident agent within the District at all times during the term of the license. This license is issued regardless of whether the entity maintains an office in the District and the activities of the business constitute doing business or having a tax situs. D.C. Code Ann. §26-1104(g).

Only 1 place of business may be maintained under any one license. A licensee may maintain more than 1 license under the Mortgage Lender and Broker Act provided that a separate application for each license is made (see Section I.). D.C. Code Ann. §1104(d)(2).

A person may not conduct any mortgage loan business at any location or under any name different from the address and name that appears on the person's license. Id. at §26-1104(e)(2)




Florida

Mortgage Brokerage and Lending Act

There is no requirement that an office be maintained in Florida.

Each licensee must maintain and transact business from a principal place of business. Fla. Stat. Ann. §§494.0039(1); 494.0067(1).

Each principal place of business and each branch office of a mortgage lender must be operated under the full charge, control, and supervision of the licensee. In addition, a mortgage lender must designate a registered agent in Florida for service of process. Fla. Stat. Ann. §494.0067(1), (7).




Georgia

Georgia Residential Mortgage Act

Mortgage lenders are not required to have a physical place of business in Georgia. Mortgage brokers must have a physical place of business in Georgia if the mortgage broker's home state requires one. Each licensee, if it has or is required to have a physical place of business in Georgia, must provide to the Department a complete listing of all such offices or locations. Ga. Comp. R. & Regs. r. 80-11-1-.03.

All licensed mortgage loan originators must maintain an office of record with the Department. If the mortgage loan originator is not domiciled in Georgia, then the main office location of the sponsoring/employing licensee or registrant may serve as the official employment address of the loan originator. Those licensed mortgage loan originators domiciled within Georgia must reflect the office from which the mortgage loan originator is supervised by the mortgage loan originator’s employer, either the main office or an approved branch location. Ga. Comp. R. & Regs. r. 80-11-5-.03.

Branch Offices

A licensee may not open a new additional office in Georgia without prior approval of the Department. Applications for an additional office must be made in writing on a form prescribed by the Department and be accompanied by a nonrefundable application fee of $350. The application will be approved unless the Department finds that the applicant has not conducted business under the Georgia Residential Mortgage Act (GRMA) efficiently, fairly, in the public interest, and in accordance with law. The application will be deemed approved if notice to the contrary has not been mailed to the applicant within 45 days of the date the application was received by the Department. Ga. Code Ann. §7-1-1006(f).

Additionally, the licensee must have a branch manager for the location that is approved by the Department. Ga. Code Ann. §7-1-1006(g).

“Branch manager” means a person who supervises daily activities in Georgia of a licensee, whether at a main or branch location, and regardless of job title.

An individual may not serve as the branch manager of more than 1 location of a licensee unless the licensee can demonstrate that the proposed branch manager will be able to effectively manage these locations to ensure that they operate in compliance with state and federal law, and that the manager can adequately supervise the daily functions performed by the employees at the locations.

The licensee must conduct an initial Georgia Crime Information Center background check on each branch manager and send it to the Department together with a credit report run within 30 days of submission of an application. In the event that the background investigation of the branch manager by



the licensee indicates that the information is incomplete or that the proposed manager has a criminal record in any state other than Georgia, the applicant must submit 2 sets of fingerprints, along with a fee of $30 in order for the Department to administer an expanded background check.

Ga. Comp. R. & Regs. r. 80-11-1-.04.

An office location, including a personal residence, is considered a branch if:

(1) the location address is printed on or contained in letterheads, business cards, announcements,advertisements, solicitations, brochures, or the like;

(2) Georgia consumers are received at the location or are directed to deliver any information by anymeans to the location;

(3) loan files, applications, and any other books and records required by the GRMA or Departmentrules are located at the location;

(4) the location is used to meet the licensing standards in section 7-1-1003.1 and rule 80-11-1-.03;or

(5) the licensee directly or indirectly reimburses for rent, utility bills or other expenses incurred foruse of a residence as a branch.

A location, including a personal residence, will not be deemed a branch and will be required to have its own license if:

(1) it is a franchise arrangement;(2) it is separate entity that may be referred to as a “net branch,” and it is an independent business

or mortgage operation which is not under the direct control, management, supervision andresponsibility of the licensee;

(3) the licensee is not the lessee or owner of the branch and the branch is not under the direct anddaily ownership, control, management, and supervision of the licensee;

(4) all employees exempt from individual licensing, including the branch manager, do not meet therequirements for exemption and the rules of the Department;

(5) all assets and liabilities of the branch are not assets and liabilities of the licensee and all incomeand expenses of the branch are income and expenses of the licensee and properly accountedfor in the financial records and tax returns of the licensee; or

(6) all practices, policies, and procedures, including but not limited to those relating to employmentand operations, are not originated and established by the licensee and are not appliedconsistently to the main office and all branches.

An unstaffed storage facility does not constitute a branch.

Ga. Comp. R. & Regs. r. 80-11-1-.03.




Hawaii

Nondepository Financial Services Loan Company Act

Every financial services loan company must display a copy of its principal office license in a conspicuous place at is principal office and must display copy of a branch office license in a conspicuous place at the branch office designated on the branch office license. Haw. Senate Bill 3008 (2008), §1.

Secure and Fair Enforcement for Mortgage Licensing Act

Every mortgage loan originator company licensed under the Secure and Fair Enforcement for Mortgage Licensing Act must have and maintain a principal place of business in the state and must designate a manager.

Branch offices in Hawaii maintained by licensed mortgage loan companies may not operate without the written approval of the Commissioner. An application to establish a branch office must be submitted with a nonrefundable application fee (Section I.A.1.). A mortgage loan originator company that establishes branch offices must designate a manager located at each branch office to oversee that branch office.

A mortgage loan originator company may not relocate any office in Hawaii without the prior written approval of the Commissioner. An application to relocate an office must provide the reasons for the relocation, the street address of the proposed relocated office, and other information that may be required by the Commissioner. An application to relocate an office must be submitted with a nonrefundable fee. (Section I.A.1.).

A mortgage loan originator company must give the commissioner notice of its intent to close a branch office at least 30 days prior to the closing. The notice must state the intended date of closing, and specify the reasons for the closing.

Haw. Rev. Stat. Ann. §454F-J.



State Branch Office Requirements: State Branch Office Requirements:

Illinois

Residential Mortgage License Act of 1987

The Residential Mortgage License Act of 1987 does not require that a licensee maintain an office in Illinois. However, a licensee must maintain a registered agent in Illinois. 205 Ill. Comp. Stat. Ann. 635/3-4(a).

A licensee whose principal place of business is located in Illinois must maintain at least 1 full service office within Illinois.

In addition, a licensee must provide a person or persons reasonably adequate to handle efficiently communications, questions, and other matters relating to an application for a loan or existing loan and provide a toll-free telephone arrangement for doing so.

In determining whether a licensee handles such matters in a reasonably adequate manner, the Director must consider consumer complaints received regarding the licensees and information obtained from examinations conducted and reports filed pursuant to the Act.

If the Director determines that a licensee is not in compliance, the Director will notify the licensee, in writing, detailing the requirements for bringing the licensee into compliance. The Director may require a licensee to demonstrate compliance in instances in which personnel are conducting licensable activities in Illinois without adequate facilities and/or licensed offices in Illinois.

Ill. Admin. Code tit. 38, §1050.340.

“Full service office” means an office, provided by the licensee and not subleased from the licensee's employees, and staff reasonably adequate to efficiently handle communications, questions, and other matters relating to any application for a home mortgage or an existing home mortgage with respect to which the licensee is performing services, regardless of kind, for any borrower, lender, note owner, note holder, or himself while engaged in the residential mortgage business. 205 Ill. Comp. Stat. Ann. 635/3-4; 635/1-4.

An office may not be located in any real estate, retail, or financial business establishment, unless separated from the other business by a separate and distinct area within the establishment. In addition, the location and operation of a full service office must be in compliance with any applicable zoning laws or ordinances and home office or business regulations.

The Department may require a licensee operating from home or residentially zoned office to provide another approved location that is suitable to conduct an examination.



205 Ill. Comp. Stat. Ann. 635/3-4(a).

Each full service office must maintain adequate, organized, and accurate books and records, ample phone lines, hours of business, staff training and supervision, and a mechanism to resolve consumer inquiries, complaints, and problems. 205 Ill. Comp. Stat. Ann. 635/1-4.

In lieu of maintaining a full service office in Illinois, a licensee whose principal place of business is located outside of Illinois may:

(1) Provide, upon the Department's request and notice, an approved location that is suitable toconduct an examination; and

(2) submit a certified audit evidencing a net worth of at least $150,000 (see Section I.A.2.) and afidelity bond of $100,000 (see Section I.A.3.).

205 Ill. Comp. Stat. Ann. 635/3-4(b).

A license or certificate must be conspicuously posted in the licensee's office(s) located in Illinois. Out-of-state licensees without an Illinois office must produce the license upon request. Licensees originating loans on the internet must post on their internet web site their license number and the address and telephone number of the Department. 205 Ill. Comp. Stat. Ann. 635/2-9.

Branch Offices

Each entity conducting activities regulated by the RMLA will be issued 1 license. However, each office, place of business or location at which a residential mortgage license conducts its business must be recorded with the Department. 205 Ill. Comp. Stat. Ann. 635/1-3(f).

A licensee may apply for authority to open and maintain additional full-service offices by submitting to the Department a Notice of Intent to Establish Additional Full-Service Office 30 days prior to the proposed operation of the office, along with a $250 fee, in which case the licensee will be provided with a certificate for the additional office(s). 205 Ill. Comp. Stat. Ann. 635/2-8.

The $250 non-refundable fee must be paid annually on the license anniversary date. Ill. Admin. Code tit. 38, §1050.210(e).




Louisiana

Louisiana S.A.F.E. Residential Mortgage Lending Act (formerly known as the “Residential Mortgage Lending Act”)

The Louisiana S.A.F.E. Residential Mortgage Lending Act does not require that a mortgage lender, broker or loan originator maintain an office in Louisiana.




Maryland

Maryland Mortgage Lender Law

A license under the Maryland Mortgage Lender Law (MMLL) may be issued to a business entity whose principal office is located outside of Maryland as long as the business entity maintains a resident agent in Maryland at all times during the term of the license, regardless of whether the business entity maintains any office in Maryland or whether the activities of the business entity constitute doing business or having a tax situs in Maryland. Md. Code Ann., Fin. Inst. §11-505(f). Only 1 place of business may be maintained under any 1 license. Id. at §11-505(b).

A licensee must post its license for each licensed location, on the premises in a conspicuous location accessible to the public.Md. Regs. Code tit. 09, §03.06.03(G).

A licensee under the MMLL may not conduct mortgage loan business at any location or under any name different from the address and name that appears on the person's license. Md. Code Ann., Fin. Inst. §11-505(d)(2).

A licensee may not allow any note, or loan contract, mortgage, or evidence of indebtedness secured by a secondary mortgage or deed of trust on a dwelling or residential real estate to be signed or executed at any place for which the person does not have a license, except at the office of:

(1) the attorney for the borrower or for the licensee; or(2) a title insurance company, a title company, or an attorney for a title insurance company or a title

company.

Id. at §11-505(e)(1).

However, if a borrower or the borrower's designee requests (in writing) that the licensee conduct the loan closing at another location because of the borrower's sickness, the lender may comply. Id. at §11-505(e)(2).

Mortgage Originator Law

A license may be issued to an individual who is employed by a mortgage lender that has its principal office located outside Maryland if the mortgage lender maintains:

(1) a resident agent within Maryland; and(2) an office within Maryland staffed by at least 1 employee authorized to originate mortgage loans.



Md. Code Ann., Fin. Inst. §11-603(D).

A mortgage lender is not required to maintain an office in the state of Maryland if the laws of the state in which its principal office is located authorize a mortgage lender from Maryland to engage in mortgage lending without maintaining an office in that state. Id. at §11-603(E).




Massachusetts

Mortgage Lender and Broker Laws

Note that the Mortgage Loan Originator Law also contains provisions regarding office requirements for licensed mortgage lenders and brokers (see below).

A licensee does not have to maintain an office in Massachusetts. A licensee who does not maintain an office in Massachusetts must designate a resident agent within Massachusetts. The appointment of a resident agent requires the prior approval of the Commissioner. Mass. Regs. Code tit. 209, §42.09(2).

A licensee must prominently post its license, or copies of the license issued by the Commissioner for a branch office, in each place of business of the licensee. Copies of licenses for posting in authorized branch offices may be obtained at a reasonable cost from the Commissioner. Mass. Regs. Code tit. 209, §42.13(3).

Any business at a branch office must at all times be conducted in the name of the licensee as it appears on the license. Mass. Gen. Laws Ann. ch. 255E, §5.

Mortgage Loan Originator Law

Each original license issued to a mortgage loan originator must be provided to and maintained by the employing entity at the entity's main office. Mass. Gen. Laws. Ann. ch. 255F, §7.

Collection Agencies Laws

The Collection Agencies Laws does not require a third party loan servicer to maintain an office in Massachusetts.

A registered third party loan servicer must prominently post its registration, or copies of the registration, in each place of business of the third party loan servicer. Copies of registrations for posting may be obtained at a reasonable cost from the Commissioner. Mass. Regs. Code tit. 209, §18.07(3).




Michigan

All Lenders

Each lender must make available for public distribution at the lender's principal office and each branch office or service center a pamphlet or document explaining in general terms the lender's criteria for the approval or denial of a loan application. The pamphlet or other document must prominently state that a person has the right to make a loan inquiry and to file a written application for a mortgage loan or home improvement loan and to receive a written response to the application. A lender may use a separate pamphlet or document for mortgage loans and home improvement loans, and the pamphlet or document may contain material in addition to that required. A copy of the pamphlet or other document must be filed with the Department. Mich. Comp. Laws Ann §445.1602(10).

The above requirements apply to state or nationally chartered banks, state or federally chartered savings and loan associations, state or federally chartered credit unions, the Michigan state housing development authority, and any business entities making or purchasing mortgage loans, which have a main office, branch office, or service center doing such business within the state of Michigan. Mich. Comp. Laws Ann §445.1601(c).

Mortgage Brokers, Lenders and Servicers Licensing Act

A first mortgage lender, broker or servicer is not required to maintain an office in Michigan. However, the application (Form FIS 1140 MI Specific Forms for Mortgage Application) for a license under the Mortgage Brokers, Lenders and Servicers Licensing Act requires the applicant to provide the address of a Michigan resident agent who will accept service of process on the applicant's behalf. see www.Michigan.gov/cis.

Secondary Mortgage Loan Act

A secondary mortgage lender, broker or servicer is not required to maintain an office in Michigan. However, the application (Form FIS 1140 MI Specific Forms for Mortgage Application) for a license under the Secondary Mortgage Loan Act requires the applicant to provide the address of a Michigan resident agent who will accept service of process on the applicant's behalf. see www.Michigan.gov/cis.




Minnesota

Refer to federal guidelines, as they do not have specific language for office requirements.




Missouri

Licensee shall maintain at least one full-service office with staff, duties to handle matters relating to mortgage--waiver, when.

443.857. Each residential mortgage loan broker shall maintain, in the state of Missouri, at least one full-service office with staff reasonably adequate to efficiently handle all matters relating to any proposed or existing home mortgage with respect to which such residential mortgage loan broker is performing services; except that this provision may be waived by the director for persons providing mortgage loan servicing under section 443.812.

(12) "Full-service office", office and staff in Missouri reasonably adequate to handle efficientlycommunications, questions, and other matters relating to any application for a new or existing homemortgage loan which the residential mortgage loan broker is brokering, funding, originating,purchasing, or servicing. The management and operation of each full-service office shall includeobservance of good business practices such as adequate, organized, and accurate books andrecords, ample phone lines, hours of business, staff training and supervision, and provision for amechanism to resolve consumer inquiries, complaints, and problems. The director shall promulgaterules with regard to the requirements of this subdivision and shall include an evaluation of compliancewith this subdivision in the periodic examination of the residential mortgage loan broker;




Nevada

Mortgage Banker Act

As an application for a mortgage banker's license must include the address of the principal place of business and branch office in Nevada, an in-state office is required. See Nev. Rev. Stat. §645E.200. The specific requirements for an office are not set by statute.

However, a person may apply for a license for an office or other place of business located outside of Nevada from which the applicant will conduct business in Nevada if the applicant or a subsidiary or affiliate of the applicant has a mortgage banker license issued for an office or other place of business located in Nevada and if the applicant submits with the application for a license a statement signed by the applicant which states that the applicant agrees to:

(1) Make available at a location within Nevada the books, accounts, papers, records and files of theoffice or place of business located outside of Nevada to the Commissioner; or

(2) pay the reasonable expenses for travel, meals and lodging of the Commissioner incurred duringany investigation or examination made at the office or place of business located outside ofNevada.

See id.

A mortgage banker must post each license in a conspicuous place in the office for which the license has been issued. See Nev. Rev. Stat. §645E.220.

Each branch office must conspicuously display its license at the branch office. Nev. Admin. Code, ch. 645E, §220(5).

A licensed mortgage banker must keep and maintain at all times at each location where it conducts business in Nevada complete and suitable records of all mortgage transactions made by it at that location. See Nev. Rev. Stat. §645E.350. See Section VIII, below for a discussion of “complete and suitable” records.

Each mortgage banker must also keep and maintain at all times at each location “all original books, papers and data, or copies thereof, clearly reflecting the financial condition of the business of the mortgage banker. See id.

A mortgage banker may share office space with any other business is each business has designated space within the office space and each business is separately identifiable by a sign or other method



of identification within the office space. See Adopted Regulation R088-04, Nev. Admin. Code ch. 645E, Sec. 8. A mortgage banker may share office space with a business licensed under chapter 645 (real estate brokers and salespersons) of the Nevada Revised statutes if:

(1) Each business has separate and distinct office space and signs such that a reasonablecustomer would understand which business he is transacting with at all times;

(2) each business operates as a separate legal entity;(3) each business maintains separate accounts, books and records;(4) each business maintains separate licenses; and(5) the businesses are subsidiaries of the same parent corporation or are otherwise affiliated

businesses.

See Adopted Regulations R088-04, Nev. Admin. Code ch. 645E, Sec. 8.

A mortgage banker must maintain a permanent sign that includes the name of the mortgage banker at each place of business of the mortgage banker, including, but not limited to, each branch office of the mortgage banker. See Adopted Regulations R088-04, Nev. Admin. Code ch. 645E, Sec. 9. The sign must be:

(1) Readable from the nearest public street, sidewalk or highway;(2) if the place of business of a mortgage banker is in an office building, posted on the building

directory of the office building or near the entrance to the office building on the exterior of thebuilding.

See id.

Mortgage Broker Act

A licensed mortgage broker must have a place of business in Nevada. See Nev. Rev. Stat. §645B.020.

A mortgage broker must post each license in a conspicuous place in the office to which it pertains. See id. at §645B.025.

A licensed mortgage broker must keep and maintain at all times at each location where it conducts business in Nevada “complete and suitable” records of all mortgage transactions made by it at that location. See Nev. Rev. Stat. §645B.080. See Section XIII, below for a discussion of complete and suitable records.

Each mortgage broker must also keep and maintain at all times at each location "all original books, papers and data, or copies thereof, clearly reflecting the financial condition of the business of the mortgage broker. See id. No time period is set by statute.



A mortgage broker may share office space with any other business is each business has designated space within the office space and each business is separately identifiable by a sign or other method of identification within the office space.

See Adopted Regulation R087-04, Nev. Admin. Code ch. 645B, Sec. 10. A mortgage broker may share office space with a business licensed under chapter 645 (real estate brokers and salespersons) of the Nevada Revised statutes if:

(1) Each business has separate and distinct office space and signs such that a reasonablecustomer would understand which business he is transacting with at all times;

(2) each business maintains separate accounts, books and records;(3) each business maintains separate licenses; and(4) the businesses are subsidiaries of the same parent corporation or are otherwise affiliated

businesses.

See Adopted Regulations R087-04, Nev. Admin. Code ch. 645B, Sec. 10.




New Jersey

New Jersey Residential Mortgage Lending Act

Mortgage Lenders and Brokers

A residential mortgage lender and broker is not required to maintain an office in New Jersey so long as the lender or broker is qualified to do business in New Jersey and has a registered agent for service of process. N.J. Stat. Ann. §17:11C-66.

The license of a residential mortgage lender and broker must be posted conspicuously in the places of business of that lender and broker. In addition, the license of any qualified individual must be maintained by the lender and broker and must be available for public inspection at the lender's or broker's places of business. N.J. Stat. Ann. §17:11C-67(a).

Loan Originators

A mortgage loan originator license must be maintained by the loan originator and must be available for public inspection at the loan originator's places of business. N.J. Stat. Ann. §17:11C-67(b).

Branch Offices

The Department will consider the following factors in determining whether a location is suitable:

(i) the location must have a space that may only be utilized for the purposes of the licensee'sbusiness and by the licensee and its employees, structured in such a way as to ensure themaintenance of a consumer's right to privacy with respect to conversations and documentsinvolving personal and financial information;

(ii) the location must conform to all local ordinances and zoning requirements;(iii) the location must be reasonably accessible to the public;(iv) any signage proposed for the location must clearly identify the licensee;(v) the location must be reasonably free of noise and other distractions so as to permit customers to

give appropriate consideration to the loan transaction; and(vi) in addition, a location in a residence shall not be considered suitable unless the office is

separate from the residential area and conveniently accessible to all consumers through a



separate business entrance.

The Department will consider the following factors in determining whether an out-of-state location at which there is direct contact with consumers:

(i) the location must ensure the maintenance of a consumer's right to privacy with respect toconversations and documents involving personal and financial information; and

(ii) the location must comply with all applicable Federal, State and local laws in the state where theoffice is located.

Applicants for a business license must certify the location of their principal office is in compliance with the requirements described above.

N.J. Admin. Code tit. 3, §15-1.3.

In addition to the above office location requirements, branch office arrangements are restricted as follows:

(1) a branch office may not be a separate business entity (If an office of another entity is purchasedby or merged into a licensee, the licensee must file for a branch office license. The filing mustinclude documentation evidencing the acquisition and/or merger of that entity into the survivinglicensee.);

(2) a branch office may not pay its own operating expenses (Operating expenses include, but arenot limited to, compensation of branch office employees, and payments for equipment, furniture,office rent, and other similar expenses incurred in operating a mortgage lending business.);

(3) a branch office may not maintain a banking account or accounts for the payment of expenses ofthat branch that is separate from the account or accounts of the licensee;

(4) a branch office may not maintain contractual relationships with vendors for items such as leases, telephones, utilities, and advertising in the name of the branch office;

(5) a branch office may not maintain lines of credit, warehouse agreements, or other investoragreements that are separate from those of the licensee; and

(6) a branch office may not indemnify the licensee against damages incurred from any apparent,express, or implied agency representation by or through the branch office's actions.

A licensee may maintain more than 1 office but must secure a license for each branch office.

A licensee does not need to obtain a branch office license for an attorney's office merely because loans are closed there and fees are received there incident to the loan closing.


If a licensee maintains a branch office or offices, the licensee must identify 1 of the offices as the principal office.

The designated principal office must be made as part of the application for licensure. Notice of a change in the location of the principal office must be entered into the Nationwide Mortgage Licensing Registry System within 10 days of the effective date of the change.




Branch office arrangements are restricted as follows:

(1) a branch office may not be a separate business entity (If an office of another entity is purchasedby or merged into a licensed mortgage or broker lender, the licensee must file for a branch officelicense. The filing must include documentation evidencing the acquisition and/or merger of thatentity into the surviving licensee.);

(2) a branch office may not pay its own operating expenses (Operating expenses include, but arenot limited to, compensation of branch office employees, and payments for equipment, furniture,office rent, and other similar expenses incurred in operating a mortgage lending business.);

(3) a branch office may not maintain a banking account or accounts for the payment of expenses ofthat branch that is separate from the account or accounts of the licensee;

(4) a branch office may not maintain contractual relationships with vendors for items such as leases, telephones, utilities, and advertising in the name of the branch office;

(5) a branch office may not maintain lines of credit, warehouse agreements, or other investoragreements that are separate from those of the business licensee; and

(6) a branch office may not indemnify the mortgage or broker lender against damages incurred fromany apparent, express, or implied agency representation by or through the branch office'sactions.





New Mexico

Mortgage Loan Company Act

Mortgage loan companies are not required to maintain an office in New Mexico. See http://www.rld.state.nm.us/FID/faq.html#mortgage


32


New York New York Banking Law

Mortgage Bankers

A mortgage banker must prominently post a copy of its license in each place of business. N.Y. Banking Law §593.

With respect to any mortgage loan originators (MLOs) employed by or affiliated with the mortgage banker, the banker must:

(1) assign MLOs to locations licensed by the Superintendent;(2) display the authorization certificate for each MLO working at the licensed location; and(3) ensure that the authorization number of each MLO performing mortgage loan origination

services with respect to a mortgage application is recorded on the application.

N.Y. Comp. Codes R. & Regs. tit. 3, , § 420.18(4-6).

Mortgage Brokers

A mortgage broker must prominently post a copy of its certificate of registration in each place of business. N.Y. Banking Law §593-a(1). The mortgage broker must also prominently display a notice printed in English, with each letter at least 2 inches in height, indicating that the mortgage broker is not permitted to make mortgage loans. Id. at §593-a(2).

With respect to any mortgage loan originators (MLOs) employed by or affiliated with the mortgage broker, the broker must:

(1) assign MLOs to locations registered by the Superintendent;(2) display the authorization certificate for each MLO working at the registered location; and(3) ensure that the authorization number of each MLO performing mortgage loan origination

services with respect to a mortgage application is recorded on the application.

N.Y. Comp. Codes R. & Regs. tit. 3, § 420.18(4-6)

Mortgage Loan Originators REV 12/26/12 RO This is an internal EPM document and not meant for public or consumer

information.



The New York Banking Law does not contain provisions regarding office requirements for MLOs, other than the requirements imposed on the employing or affiliated mortgage banker or broker as set forth above.


North Carolina

North Carolina Secure and Fair Enforcement Mortgage Licensing Act

Mortgage Lenders

A mortgage lender is not required to maintain an office in North Carolina; however, a mortgage lender must maintain a record of the principal place of business with the Commissioner and report any change of address of the principal place of business or any branch office within 15 days after the change. N.C. Gen. Stat. §53-244.105(c).

The principal office and each branch office of a mortgage lender must have a branch manager who has 3 years of experience in residential mortgage lending. N.C. Gen. Stat. §53-244.040(f).

A mortgage lender must display the certificate of licensure issued by the Commissioner. The certificate must be displayed in plain public view in the principal office and in each branch office. N.C. Gen. Stat. §53-244.106.

Note that mortgage lenders who operate branch offices are prohibited from “net branching.” See Section III. for further information.

Mortgage Brokers

A mortgage broker must maintain and transact business from a principal place of business in North Carolina. A principal place of business may not be located at an individual's home or residence. N.C. Gen. Stat. §53-244.105(c).

A mortgage broker must maintain a record of the principal place of business with the Commissioner and report any change of address of the principal place of business or any branch office within 15 days after the change. Id.

The principal office and each branch office of a mortgage broker must have a branch manager who has 3 years of experience in residential mortgage lending. N.C. Gen. Stat. §53-244.040(f).

A mortgage broker must display the certificate of licensure issued by the Commissioner. The certificate must be displayed in plain public view in the principal office and in each branch office. N.C. Gen. Stat. §53-244.106.



Note that mortgage brokers who operate branch offices are prohibited from “net branching.” See Section III. for further information.

Loan Originators

A mortgage loan originator must display the certificate of licensure issued by the Commissioner. The certificate must be displayed in each branch office in which the individual acts as a mortgage loan originator. N.C. Gen. Stat. §53-244.106.

Mortgage Servicers

A mortgage servicer is not required to maintain an office in North Carolina; however, a mortgage servicer must maintain a record of the principal place of business with the Commissioner and report any change of address of the principal place of business or any branch office within 15 days after the change. N.C. Gen. Stat. §53-244.105(c).




OHIO

Mortgage Broker Act

In-State Office

A registrant shall maintain an office location in this state for the transaction of business as a mortgage broker in this state. Ohio Rev. Code Ann. §1322.02(A)(1).

If any location where the business is to be transacted is a residence, the Superintendent may require that the application be accompanied by a copy of a zoning permit authorizing the use of the residence for commercial purposes, or by a written opinion or other document issued by the county or political subdivision where the residence is located certifying that the use of the residence to transact business as a mortgage broker is not prohibited by the county or political subdivision. Ohio Rev. Code Ann. §1322.03(A).

An unstaffed storage facility will not meet the above requirements. Ohio Admin. Code §1301:8-7-02(G).

Mortgage Loan Act

There are no provisions under the Mortgage Loan Act relative to an in-state office requirement.

Registration of Branch Offices

No person, on the person's own behalf or on behalf of any other person, shall act as a mortgage broker without first having obtained a certificate of registration from the superintendent of financial institutions for every office to be maintained by the person for the transaction of business as a mortgage broker in this state. Ohio Rev. Code Ann. §1322.02(A)(1).

Posting Certificates of Registration

In a conspicuous place in each registered office, a mortgage broker must at all times post a copy of the certificate of registration issued for that office. Ohio Admin. Code §1301:8-7-02(J).

Loan Officers

Each original loan originator license shall be deposited with and maintained by the mortgage broker at the mortgage broker's main office. A copy of the license shall be maintained and displayed at the office where the loan originator principally transacts business. Ohio Rev. Code Ann. §1322.031(H)(1).


36

The licensee shall maintain and display the original loan originator license at the office where the licensee principally transacts business. Ohio Rev. Code Ann. §1322.031(H)(4)(a).

Mortgage Loan Originators

Each original mortgage loan originator license shall be deposited with and maintained at the registrant's main office. A copy of the mortgage loan originator license shall be maintained and displayed at the office where the mortgage loan originator principally transacts business. Ohio Rev. Code Ann. §1321.551(B).

If a mortgage loan originator is employed by or associated with a person claiming an exemption the mortgage loan originator shall maintain and display the original mortgage loan originator license at the office where the mortgage loan originator principally transacts business. Ohio Rev. Code Ann. §1321.551(E).

Office Hours

A mortgage broker must maintain office hours from 9 a.m. to 5 p.m. on the second Thursday of each of the following months: February, April, June, August, October, and December. Ohio Admin. Code §1301:8-7-13(D). A mortgage broker is not required to maintain such office hours if the mortgagebroker has received prior written authorization from the Superintendent to close the office(s), and thewritten authorization is conspicuously posted on the front entrance doors of the office(s). Id. at§1301:8-7-13(E).

Sharing Office Space

A mortgage broker may share office space with another person if:

(1) the physical arrangement of the shared space does not confuse or mislead borrowers about themortgage broker's identity;

(2) computer access to borrower files and/or personal financial information is limited to the mortgagebroker's employees in the absence of full disclosure and written consent of the borrower; and

(3) records required to be created and maintained are kept separate and inaccessible from anyperson not employed by the mortgage broker.

Ohio Admin. Code §1301:8-7-02(F).

General Restrictions and Requirements for Branch Offices

Mortgage Broker Act

A branch office must not be a separate business entity. Each branch office and every employee of each branch office is the responsibility of the mortgage broker and must be under the direct control, management and supervision of the mortgage broker. Id. at §1301:8-7-02(H)(1).

A branch office must not pay its own operating expenses. Operating expenses include, but are not limited to, compensation of branch office employees, and payments for equipment, furniture, office rent, and other similar expenses incurred in operating a mortgage broker business. All assets and REV 12/26/12 RO This is an internal EPM document and not meant for public or consumer information.



liabilities of the branch are assets and liabilities of the mortgage broker and all income and expenses of the branch are income and expenses of the mortgage broker and must be properly accounted for in the financial records and state and federal tax returns. However, compensation of a branch manager may be based on the income of the branch minus the operating expenses of the branch as long as the ultimate responsibility and payment of those operating expenses remain the responsibility of the mortgage broker. Id. at §1301:8-7-02(H)(2).

A branch office must not indemnify the mortgage broker against damages incurred from any apparent, express, or implied agency representation, or from any actions of the branch or the employees working in, from or through the branch. Id. at §1301:8-7-02(H)(3).

A branch must not maintain a banking account or accounts for the payment of expenses of that branch that is separate from the account or accounts of the mortgage broker. All operating expenses must be paid from an account of the mortgage broker, and may not be paid through or from any employee's personal account or any non-registrant account. Id. at §1301:8-7-02(H)(4).

A branch office must not maintain lines of credit, warehouse agreements, or other investor agreements that are separate from those of the mortgage broker. Id. at §1301:8-7-02(H)(5).

A branch office must not maintain contractual relationships with vendors for items such as leases, telephones, utilities, and advertising in the name of the branch office. All contractual relationships must be by and through the mortgage broker. Id. at §1301:8-7-02(H)(6).

All practices, policies, and procedures, including but not limited to those relating to employment and operations, must be originated and established by the mortgage broker and must be applied consistently to the main office and all branches. Id. at §1301:8-7-02(H)(7).

A purported branch location which does not comply with the above restrictions and requirements, or any other arrangement where a mortgage broker allows a separate entity to conduct mortgage business under the mortgage broker's certificate of registration, sometimes referred to as "net branching," is not permissible. Id. at §1301:8-7-02(I).

Mortgage Loan Act

No registrant shall conduct the business of making loans under the Mortgage Loan Act in any office, room, or place of business in which any other business is solicited or engaged in, or in association or conjunction with any other such business, if the superintendent of financial institutions finds, pursuant to a hearing, that the other business is of such a nature that the conduct tends to conceal evasion of the Mortgage Loan Act or of the rules adopted under those sections, and orders the registrant in writing to desist from the conduct. Ohio Rev. Code Ann. §1321.551(A).

The business of a mortgage loan originator shall principally be transacted at an office of the registrant with whom the licensee is employed or associated, which office is registered. Ohio Rev. Code Ann. §1321.551(B).




Oregon Oregon Mortgage Lender Law

Every licensed mortgage banker and mortgage broker must designate and maintain a principal place of business for the transaction of business. Or. Rev. Stat. §86A.166(1). A mortgage banker or mortgage broker whose principal place of business is not in Oregon must continuously maintain a registered agent in Oregon. Or. Rev. Stat. §86A.166(4). The registered agent must be an agent upon whom any process, notice of demand to be served upon the mortgage banker or mortgage broker may be served. The Director will be the registered agent if the mortgage banker or mortgage broker fails to appoint or maintain a registered agent in Oregon or the registered agent cannot be found. Or. Rev. Stat. §86A.166(5).

A copy of the license issued to the mortgage banker or mortgage broker must be displayed in each place of business of the licensee. Or. Rev. Stat. §86A.166(2); Or. Admin. R. §441-860-0030(3).

Branch offices must be supervised by the licensee to insure compliance with the Oregon Mortgage Lender Law. Or. Admin. R. §441-860-0040(1).

Oregon Consumer Finance Act

Although not expressly stated in the Oregon Consumer Finance Act (OCFA), it is the Director's position that a lender must maintain an office in the state of Oregon based on the fact that a lender's office is subject to examination by the Director and that a licensee must pay an extra fee if the examination is conducted outside of Oregon. Or. Admin. R. §441-730-0030.

A lender must post its license in a prominent location which is conspicuous to the public. The license will contain a notice that the business is licensed and subject to regulation by the Director. The notice must provide the public with a toll-free telephone number for public inquiries or complaints. Or. Admin. R. §441-730-0070(4).

A lender may not transact any business except under the name and at the place of business named in the license. The Director may issue more than one license to the same lender if the lender complies with all the provisions of the OCFA governing an original issuance of a license for each such additional license. Each additional license must be for a separate and distinct place of business for making and completing loans. Or. Rev. Stat. §725.210.

Notwithstanding the above requirement, a lender that applied for and received a license before September 20, 1985 for a location outside of Oregon may receive and hold one or more licenses relating to locations outside of Oregon, including one additional license for a location not licensed on or before September 20, 1985, and may transact business at such licensed locations. With respect to such a lender only, loans and advances under open-end loan plans or open-end credit card plans will be considered to be business transacted where the applications or agreements in connection with the loan plans or credit card plans are approved by the lender. Or. Rev. Stat. §725.349.




Pennsylvania

Mortgage Licensing Act

Mortgage Lenders, Loan Correspondents and Brokers

There is no requirement that Mortgage lenders, loan correspondents and brokers maintain a principal place of business in Pennsylvania. 7 Pa. Cons. Stat. Ann. §6131(i)(1).

A mortgage lender, loan correspondent or broker must conspicuously display, at each licensed place of business, its license and copies of the licenses of all mortgage originators assigned to that location. 7 Pa. Cons. Stat. Ann. §6135(a).

Mortgage Originators

A mortgage originator must keep its license in the originator's immediate possession whenever the originator is engaged in the mortgage loan business. Id. at §6135(a).




South Carolina

South Carolina Mortgage Lending Act

The South Carolina Mortgage Lending Act does not require that a lender maintain an office in South Carolina.

A mortgage lender must display in plain view in the mortgage lender's principal office and in each branch the license issued by the Commissioner. S.C. Code Ann. §37-22-180(B).

A loan originator must display in each branch office in which mortgage loans are originated a copy of the license issued by the Commissioner. Id.

Licensing of Mortgage Brokers Act

A mortgage broker doing business in South Carolina must maintain a sufficient physical presence in South Carolina. At a minimum the broker must maintain an official place of business open during regular business hours, staffed by employees who have the authority to contract on behalf of the broker and to accept service on behalf of the broker. If the official place of business is not open for business within the hours of 8:30 A.M. to 5:00 P.M, Monday through Friday, the broker must notify the Department in writing. S.C. Code Ann. §40-58-65(B).

Mortgage brokers and loan originator licenses must be posted prominently in each place of business of the broker. S.C. Code Ann. §40-58-60(C).

A licensed mortgage broker with an official place of business within South Carolina may also maintain 1 or more branch or satellite offices so long as:

(1) the mortgage broker notifies the Department in writing 7 days prior to opening a branch office ofthe location of the branch office, the branch manager for each branch location, and that allrecords from the branch office are stored in a main or branch location in South Carolina which isstaffed by one or more licensee's during regular business hours;

(2) the records of any pending mortgage loan application or records in which a loan closing is still inprocess are made available at the mortgage broker's main or branch location within 7 businessdays of a written request delivered by fax transmission, mail or hand-delivery by the Department; and

(3) the broker notifies the Department in writing within 7 business days of closing a branch orsatellite office.

S.C. Code Ann. §40-58-65(C).



Mortgage brokers are responsible and accountable for the activities of all licensed locations, branch managers, and loan originators. Id. at §40-58-65(C)(4).

If the mortgage broker fails to notify the Department of the existence or closing of a branch office, the actual operating hours of the main or branch offices where records are kept, or the whereabouts of the broker's records, the broker is subject to the penalties set forth in S.C. Code Ann. §40-58-80 (including suspension or revocation of license and fines). Id. at §40-58-65(F).




Tennessee

Tennessee Residential Lending, Brokerage and Servicing Act

Licensees and registrants under the Residential Lending, Brokerage and Servicing Act are not required to maintain an office in the state of Tennessee.

Each license must be conspicuously posted in the respective place of business of the licensee for which the license was issued. Tenn. Code Ann. §45-13-203(b).

Managing Principals and Branch Managers

A mortgage lender and broker must have a managing principal who operates the business under that person's full charge, control, and supervision. Tenn. Code Ann. §45-13-211(a).

In addition, the principal office and each branch office of a mortgage lender and broker must have a manager. The mortgage lender and broker is responsible for ensuring that the manager has sufficient experience in the mortgage lending industry to operate the business of the mortgage lender or broker lawfully. Id.

The managing principal for a mortgage lender's or broker's business may also serve as the branch manager of 1 of the mortgage lender's or broker's branch offices. Id.

Any individual mortgage lender or broker who operates a sole proprietorship will be considered a managing principal for purposes of the TRLBSA. Id.

A mortgage lender and broker must file a form as prescribed by the Commissioner indicating the business's designation of managing principal and branch manager for each branch and each individual's acceptance of the responsibility. Id. at §45-13-211(b).

Industrial Loan and Thrift Companies Act

Registrants under Industrial Loan and Thrift Companies Act must maintain an office in the state of Tennessee.

A separate certificate of registration is required for each office or other place from which business is conducted. However, loans secured by real property are not required to be closed at an office where the registrant making the loan is registered; but such loans may be closed at the office of any attorney at law licensed to practice in Tennessee or at the office of a title insurance company or title insurance agency licensed to do business in Tennessee; provided that the closing location must be within the state of Tennessee and within 100 miles of any registered office of the registrant making the loan. Tenn. Code Ann. §45-5-103


43


Texas

Mortgage Banker Registration and Residential Mortgage Loan Originator License Act

"Physical Office" means an actual office where the business of mortgage lending and/or the business of taking or soliciting residential mortgage loan applications is conducted. It must have a street address. A post office box or other similar designation will not suffice. It must be accessible to the general public as a place of business and must hold itself open on a regular basis during posted hours. The posted hours of business must be posted in a manner to give effective notice to walk-up traffic as to the hours of opening and closing. Normally this will require posting of the hours on an exterior door or window of the office. In those instances where the physical office is in a shared office suite or building, the hours may be posted in a common lobby or reception area. During the hours in which the physical office is open, at least one staff member must be present to assist customers. The physical office of a residential mortgage loan originator need not be the location at which such person's required records are maintained, but the location at which such required records are maintained must be accessible to the Commissioner or the Commissioner's designee for examination during normal business hours. 7 Tex. Admin. Code §81.1(e).

Mortgage Broker License Act

Mortgage Brokers

A licensed mortgage broker must maintain a physical office Texas. The address of the office will be designated on the license certificate. Tex. Fin. Code Ann. §156.212(a).

The physical office must be accessible to the general public as a place of business and must hold itself open on a regular basis during posted hours. The posted hours of business must be posted in a manner to give effective notice to walk-up traffic as to the hours of opening and closing. Normally this will require posting of the hours on an exterior door or window of the office. In those instances where the physical office is in a shared office suite or building, the hours may be posted in a common lobby or reception area. During the hours in which the physical office is open, at least 1 staff member must be present to assist customers. 7 Tex. Admin. Code §80.2(9).

If a mortgage broker maintains more than one place of business in Texas, the mortgage broker must apply for an additional license and for each other office pay a fee of $50.

The license certificate of a mortgage broker must be at all times prominently displayed in the mortgage broker's place of business. The branch office certificate must be at all times prominently displayed in the mortgage broker's branch office.

Tex. Fin. Code Ann. §156.212(b).

Loan Officers

REV 12/26/12 RO This is an internal EPM document and not meant for public or consumer

information.



A loan officer license certificate must be at all times prominently displayed in the office of the mortgage broker for whom the loan officer primarily conducts business. Tex. Fin. Code Ann. §156.212(d).

Secondary Mortgage Loan Act

Licensees under the Secondary Mortgage Loan Act (SMLA) are not required to maintain an office in Texas.

A person who is required to hold a license under the SMLA must hold a separate license for each office at which loans are made, negotiated, serviced, held, or collected. For example, if a lender receives and reviews loan applications at 1 office, makes the loan decision at another office, funds the loan at a third, and collects past-due payments from another, all of these offices must be licensed. However, an office that merely receives, records, accounts for, and processes payments does not need to be licensed. Tex. Fin. Code Ann. §342.052(b); 7 Tex. Admin. Code §83.204(b); §83.205(b).

A licensee may not conduct business under the SMLA under a name or at a place of business in Texas other than the name or office stated on the license. Any action relating to a single account may occur at different licensed locations as long as every action is made by a licensed branch operated by the same authorized lender. Tex. Fin. Code Ann. §342.151(b); 7 Texas Admin. Code §83.401.

Licenses must be prominently displayed in a licensee's office in a conspicuous location visible to the general public. 7 Texas Admin. Code §83.402.

A lender may conduct business in an office, office suite, room, or place of business in which any other business is conducted or in combination with any other business unless the Commissioner:

(1) finds after a hearing that the lender's conducting of the other business in that office, office suite,room, or place of business has concealed an evasion of the SMLA; and

(2) orders the lender in writing to desist from that conduct in that office, office suite, room, or placeof business.

Tex. Fin. Code Ann. §342.560.

If a licensee is currently licensed and filing an application for a new office, the licensee must provide the information that is unique to the new location including the Application for License, Application Questionnaire, and Disclosure of Owners and Principal Parties, and a new Financial Statement. The responsible person at the new location must file a Personal Affidavit, Personal Questionnaire, and Employment History, if not previously filed. Other information required for initial licensing is not required to be filed if the information on file with the agency is current and valid. 7 Tex. Admin. Code §83.302(3).




Utah

Utah Residential Mortgage Practices and Licensing Act

The Utah Residential Mortgage Practices and Licensing Act does not require that mortgage companies maintain an office in Utah. To obtain a Utah license to operate a branch office, a person must register the branch office in the national database by:

(a) submitting an MU3 form that includes:

(i) all required identifying information; and(ii) the name of the ALM who will serve as the branch manager;

(b) creating a sponsorship through the nationwide database that identifies the mortgage loanoriginator(s) who will work from the branch office; and

(c) paying all required fees

Utah Admin Code R162-2c-201(5).

Mortgage Lending and Servicing Act

A lender, broker or servicer is not required to maintain an office in Utah. However, the lender, broker or servicer must have a designated agent in Utah upon whom service of process may be made. Utah Code Ann. §70D-2-202(1)(b).

Utah Consumer Credit Code

A lender is not required to maintain an office in Utah. However, the lender must have a designated agent in Utah upon whom service of process may be made. Utah Code Ann. §70C-8-202(c).




Virginia

Mortgage Lender and Broker Act

Mortgage lenders and brokers are not required to maintain an office in Virginia.

Each license must state the address of each office at which business is conducted, the full name of the licensee and must be prominently posted in each place of business of the mortgage lender or broker.

No licensee may use any name other than the name set forth on the license issued by the Commission.

No licensee may open an additional office or relocate any office without prior approval of the Commission.

After approval, the applicant must provide written notice to the Commissioner within 10 days of the commencement of business at the additional or relocated office.

Va. Code Ann. §6.2-1607.

Mortgage Loan Originator Act

Each license shall state fully the name and address of record of the licensee.

A mortgage loan originator is required to:

(1) display proof of licensing upon request; and(2) prominently display at any location where the individual acts as a mortgage loan originator the

telephone numbers and Internet addresses for the Nationwide Mortgage Licensing System andthe Commissioner where consumers and other interested parties may confirm the status of theloan originator's license.

Va. Code Ann. §6.2-1711(A).




Washington State

Consumer Loan Act

Any person that conducts business under the Consumer Loan Act with Washington residents must obtain a license for all locations from which business is conducted, including out-of-state locations, with the exception of those office locations providing only underwriting and back office services. Back office services do not include loan servicing. Wash. Rev. Code Ann. §31.04.075; Wash. Admin. Code §208-620-380(1); §208-620-310.

The Department may approve the maintenance of a lender's records at an out-of-state location. An out-of-state lender's registered agent is the lender's agent for service of process, notice, or demand. Wash. Admin. Code §208-620-380(2), (3).

Licenses must be conspicuously posted at each office location. Wash. Admin. Code §208-620-395.

A lender may conduct its business in a licensed location in which other persons are engaged in business. The lender must comply with 12 C.F.R. §3500.15 of RESPA, including the required disclosures and prohibitions on referral fees, if:

(1) the lender has effective control over the person sharing space;(2) the person sharing space has effective control over the licensee;(3) the lender and the person sharing space are under common control by a third person; or(4) the lender is a corporation related to another corporation as parent to subsidiary and one refers

business incident to or a part of a real estate settlement service to the other.

Wash. Admin. Code §208-620-400(1), (2).

Mortgage Broker Practices Act

The Mortgage Broker Practices Act does not require that a licensee maintain an office in Washington. However, every mortgage broker or loan originator that does not maintain a physical office within Washington must maintain a registered agent within the state to receive service of any lawful process in any judicial or administrative noncriminal suit, action, or proceeding against the licensed mortgage broker. A mortgage broker must provide the Department with the registered agent's name, physical and mailing address, and written consent to be the registered agent. The information must be provided to the Department through the Nationwide Mortgage Licensing System. Wash. Rev. Code Ann. §19.146.260; Wash. Admin. Code §208-660-420(7).

Each branch office must be licensed separately. A mortgage broker must have a written supervisory plan for its branch offices. The details of the plan, and how the mortgage broker implements the plan



for the branch offices, must take into account the number of branch offices, their location, and the number of individuals working at the branch offices. A mortgage broker must maintain the written supervisory plan as part of the broker's business books and records. Wash. Admin. Code §208-660-195(1), (3); see also Section I.

A mortgage broker license must be prominently displayed in the mortgage broker's place of business. Wash. Rev. Code Ann. §19.146.200(3); Wash. Admin. Code §208-660-195(6).

An internet company must display its license information as it appears on the license, including any or all business names, and the license number, on the company's web site. The information must also include a list of the states in which the company is licensed. Wash. Admin. Code §208-660-195(7).

A licensed mortgage broker may share an office with a licensed real estate broker. The mortgage broker location must be licensed as a main or branch mortgage broker office. Additionally, the licensed mortgage broker must clearly identify the mortgage broker business as separate from the real estate business to the public on any signage, advertising, or other material identifying the businesses. Wash. Admin. Code §208-660-180(8), (9).

Loan Originators

Neither the loan originator nor the mortgage broker company is required to display the loan originator license. However, evidence that the loan originator is licensed as a loan originator must be made available to anyone who requests it. Wash. Admin. Code §208-660-350(21).

A loan originator operating on the internet must display the loan originator's license number, and the license number and name as it appears on the license of the licensed mortgage broker the originator represents, on the web site. Id. at §208-660-350(22).

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