Add-A-State@Mortgage License Mall

a Free Mortgage License Newsletter VOL. VI (9/4/2000)
containing Recent Developments of Mortgage Licenses in the 50 states

Providing mortgage professionals with FREE access to cost saving prospecting, officing, communications, origination and processing tools. Offering mortgage brokers and originators point-of-sale loan selection and conditional approval tools.
 This Edition features: Mortgage Broker/Lender News Headlines as of 9/4/2000 ( click headline for explanation) for the following states:

Advantages of Add-A-State Services:

  • Experience
  • Speed
  • Low Costs
  • Prompt Responses to State Agencies
  • Reduced Risk of Rejection
  • Professionalism
  • Automation
  • Integrity
  • Discounts
  • Practical Effect of HUD Exemptions in OH and LA: Each of the state agencies in OH and LA interpret the HUD exemption to the OH Mortgage Broker License Act (which covers mortgage brokers and lenders who broker or make 1st mortgage loans in OH) and the LA Residential Mortage Lender Act (which covers LA mortgage brokers and lenders) as requiring a geographical location in the state approved by HUD in order to qualify for the exemption. A nonsupervised mortgagee must have an office within 200 miles in order to qualify for HUD to approve the geographical location. Consequently, the attempt to qualify for the HUD exemption in each state would require a physical office in the state which most mortgage companies are trying to avoid.
  • Solution: OH: if you broker or make both 1st and 2nd mortgages you can apply for a license under the OH Mortgage Loan Act that does not require a physical location (note: the other license, i.e., OH Mortgage Broker Act now requires a physical location in OH)
  • Solution: LA: Apply for a license under the LA Residential Mortage Lender Act (which covers LA mortgage brokers and lenders) because it does not require a physical office in LA.
  •  How Do I Get Started? Complete and Fax to 214-692-7613  Purchase Order then Overnight Mail Hardcopy of Purchase Order and Check for 33% of Purchase Order Total to Thomas Law Firm, P.C., 6116 N. Central Expressway, Suite 922, Dallas, TX 75206
  • Who Can I Talk To About My Purchase Order? Call Herb Thomas at 214-692-7611
  • Wholesale Lenders Exemptions in AZ and NV: Both AZ and NV are outstanding states to lend in but difficult states to get licensed in for 2 reasons: (1) the physical location requirement and (2) the branch manager with experience (2 yrs NV and 3 yrs AZ) requirement
  • Solution: If you are a wholesale lender, there exists Wholesale lender exemptions in both NV and AZ that may meet you needs. Call Herb Thomas at 214-692-7611 if you wish further explanation.
  • Solution: NV has an exemption for mortgage companies with (1) HUD approval (2) VA approval AND (3) Fannie Mae approval.
  • Solution: AZ: With Banking Department knowledge, licensed AZ mortgage brokers will act as your Responsible Individual for a flat fee per month. This is a good temporary solution until you can set up your own AZ office.
  • The practical effect of the WV HUD exemption: The HUD exemption for lenders in WV has been interpreted narrowly to mean that a mortgage company is exempt from obtaining the NEW WV Mortgage Lender License only if the ONLY loans they make are HUD loans. NEW ACT
  • Solution: Apply for the NEW WV Mortgage Lender License (no physical location is required)
  • State Agency Confirmation Letters (Our Fee: $100 per letter prepared on your letterhead):
  • Non-supervised Mortgagees (8 Letters): Bolster the value and effect of your HUD approval in the states that are Self-executing (NC, AL, TX, MO, OK, MS, KY, HI)
  • No License States (Lenders: IN, SC, CO, AK, MT, WY) (6 Letters)
  • Total For Lenders: 14 Letters or $1400
  • Benefits: State Agency Confirmation Letters give notice to the sate that you will be doing business in their state and requests confirmation on state agency letterhead that you are not reqired to btain a mortage license in their state. Normal response is about 60-75%. This alternative is much cheaper than confirmation via an Opinion of Counsel in each state that could cost as much as $3000 each.
  • HUD Registrations: Registrations mustt be filed in TN and AR in order to qualify for the HUD Exemption (Our Fee: $300 per Registration to prepare and file




214.692.7611 (VOICE) OR 692-7613 (FAX)

Not Certified by the Texas Board of Legal Specialization but licensed to practice in all areas of the law