Mortgage FAQ for Licensees

Where may I obtain a copy of the relevant statutes and rules?

The "Legal"  section of the Department's website contains the relevant statutes and rules.

 I think that I am exempt from the Fair Mortgage Lending Act. How do I make sure?

The "Fair Mortgage Lending Act" , Ark. Code Ann. § 23-39-502(9)(B), refers to exemptions.

What are the types of licenses are required in Arkansas?

The "Fair Mortgage Lending Act ", Ark. Code Ann. § 23-39-502(10)(11(14)(15)(17) and Ark. Code Ann. § 23-39-503 contain the definitions and license requirements.  The types of licenses available in Arkansas include Mortgage Broker, Mortgage Banker, Mortgage Servicer, and Mortgage Loan Officer.

What financial statements do I need to submit?

The "Fair Mortgage Lending Act ", Ark. Code Ann. § 23-39-505(g), requires audited financial statements for Mortgage Banker, and Mortgage Servicer.  Pursuant to Rule 5005-2(b), a mortgage broker shall provide financial statements reflecting the financial conditions of the applicant.  The financial statements must be submitted through NMLS.

What are the Mortgage Broker,Mortgage Banker, and Mortgage Servicer license fee(s)?

Initial licensing fee is $750 for a Mortgage Broker, Mortgage Banker, and Mortgage Servicer plus $100 for each branch location to be licensed.  Annual licensing fees are $350 for the main office and $100 for each branch location, as long as the renewal application is submitted in a timely manner.  NMLS&R will assess additional fees for using the NMLS&R system.

I have a license for my main office.  How do I register a branch office?

To apply for an branch office location, submit the MU3 forms and fees through NMLS.

Am I required to have a physical office in Arkansas?

No, Arkansas is not a "brick and mortar" state. 

Am I required to pay my employee by W-2 or 1099?

No, the "Fair Mortgage Lending Act", Ark. Code Ann. § 23-39-502(8), does not regulate how you compensate your employee as long as you comply with the federal income tax law.

Do I need to be employed with a mortgage company to become licensed as a loan officer?

Yes, you must be affiliated with a Mortgage Broker, Mortgage Banker, Mortgage Servicer before you can become licensed with the Department.

I have completed an application and submitted it to the NMLS to obtain a license in Arkansas.  How long will it take to become licensed?

Assuming that all information is contained in the application and no additional information is needed, the Department will complete the review of your application within 30 days of receipt.

I need to renew my Loan Officer license.  What process do I need to complete for my renewal?

The "Fair Mortgage Lending Act", Ark. Code Ann. § 23-39-506 defines the  renewal process.  Ark. Code Ann. § 23-39-507 defines the Continuing education requirements.  Renewals must be processed through the NMLS system.

My Loan Officer license has expired.  What are my options?

The "Rules Of The Fair Mortgage Lending Act", Rule 5006-1(d) and  "Fair Mortgage Lending Act", Ark. Code Ann. § 23-39-506 defines the process for license renewal  and penalties for late renewal.  The appropriate form and fees must be submitted to the NMLS in order to obtain a license.

Can I originate loans while my application is "OPEN" and pending status?

No, the "Fair Mortgage Lending Act", Ark. Code Ann. § 23-39-503(f) states that  you are required to be approved and licensed before conducting any mortgage loan activity in the State.  Unlicensed loan origination activity may be subject to disciplinary action.

Can I do one loan as an exception without having a license?

No, the "Fair Mortgage Lending Act", Ark. Code Ann. § 23-39-503 states that it is unlawful for any person other than an exempt person to act or attempt to act as a mortgage broker, mortgage banker, mortgage servicer, or loan officer in Arkansas without first obtaining a license under this Act.   Unlicensed loan origination activity may be subject to disciplinary action.

Can I originate loans for more than one company?

No, the "Fair Mortgage Lending Act", Ark. Code Ann. § 23-39-503(d)(4) states that a Loan Officer shall not be employed simultaneously by more than one (1) mortgage broker or mortgage banker licensed under this Act.

What if I change employers, can my license be transferred?

No, the "Fair Mortgage Lending Act", Ark. Code Ann. § 23-39-505(k) states that licenses issued under this Act are not transferable.

I have a felony conviction.  Will the conviction prevent me from getting a license?

You must provide the Department with as many details regarding the offense as possible, whether there is still probation or parole involved, whether there is or was restitution involved, and when the offense took place, etc. 

Does Arkansas require any educational requirements or testing required to become licensed?

"Fair Mortgage Lending Act", Ark. Code Ann. § 23-39-505(b)(2).  A high school diploma or a GED is required.  Pursuant "Rules Of The Fair Mortgage Lending Act" Rule 5005-5, a person applying to be licensed as a loan officer shall complete at least 20 hours of education, which shall include:

1.  3 hours of federal law and regulations;

2.  3 hours of ethics, which shall include instruction on fraud, consumer protection, and fair lending issuers; and

3.  2 hours of training related to lending standards for the nontraditional mortgage product marketplace.

Pursuant to Rule 5005-6, a person applying to be licensed as a loan officer shall pass a qualified written national test developed by NMLS&R and a qualified written state test developed by the Commissioner.  Both the national test and the state test shall be administered by a test provider approved by NMLS&R.

Is there a continuing education requirement?

Under the "Fair Mortgage Lending Act", Ark. Code Ann. § 23-39-507 and pursuant to the "Rules of the Fair Mortgage Lending Act", Rule 5007-1, a licensed loan officer shall complete at least 8 hours of education each calendar year. The "Education" page of the NMLS&R website provides a list of approved providers.

How do I locate a continuing education class?

The "Education" page of the NMLS&R website provides a list of approved providers.

What happens if I do not get the required 8 hours of Continuing Education by December 31st?

Pursuant to the "Rules of the Fair Mortgage Lending Act", Rule 5007-1(k), upon written request and receipt of an extension fee of $50, the Commissioner may allow an extension of up to 30 days beyond December 31 of the present calendar year in order to allow a loan officer to obtain continuing education hours and meet the requirements of these Rules.

I have over 8 hours of Continuing Education hours.  Will I lose those extra hours?

Pursuant to the "Rules Of The Fair Mortgage Lending Act", Rule 5007-1(f), a licensed loan officer may only receive credti for a continuing education course in the year in which the course is taken.

What is the disciplinary authority of the Arkansas Securities Department?

"Fair Mortgage Lending Act", Ark. Code Ann. § 23-39-514.  The Department has the authority to deny, suspend, revoke, or refuse to issue or renew a license of a licensee or applicant.

 

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Telephone: (501) 324-9260
Facsimile: (501) 324-9268
Hotline: (800) 981-4429
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