Mortgage License Mall

http://www.thomas-law.com

 presents
a Free Mortgage License Newsletter VOL. VII (2/14/2001)
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 2/14/2001 ( click headline for explanation) for the following states:

Headlines:

Advantages of Add-A-State Services:

  • Experience
  • Speed
  • Low Costs
  • Prompt Responses to State Agencies
  • Reduced Risk of Rejection

Unused Profit Center: 10 or Less Mortgage Broker and Lender License Exemptions

Many regional mortgage brokers and lenders are not aware that they can legally be closing loans and receiving compensation in many other states that they are not licensed in. Many states have a deminimus exemption rule that allows an unlicensed mortgage broker or lender to originate or make 10 or less mortgage loans in a 12 month period. The availablity of the exemption and the number of permitted mortgage loans varies per state. See my website for a sample of the states and loan numbers for mortgage brokers and the states and loan numbers for mortgage lenders.

This is an immediate profit center for mortgage brokers and lenders who have mortgage leads in other states but do not know how to capitalize on them. If you are seeing enough good mortgage leads in another state that you are not licensed in, this deminimus exemption will allow you to originate or close loans during the 30-45 days as a "bridge" until you can obtain a mortgage license. There is a procedure to qualify these exemptions: You can examine my chart to see if a state may have a 10 or less exemption but remember the chart does not constitute legal advice and no one should rely upon the information in this chart. Next get the telephone number of the govering state agency at http://www.thomas-law.com/mtgbrokers.html Then Call the state agency regulating each of these states and confirm that the Exemption exists and whether any type of permission or registration is also required to activate the Exemption. For example, today a member of my staff confirmed with Larry Moor, Supervisory Manager - Licensing, GA Department of Banking and Finance, Mortgage Division, that GA permits a mortgage lender to make 5 mortgage loans in a 12 month period but he said in order to qualify each such exempt mortgage loan must be pre-approved by calling Larry Shelley, Supervisory Manager - Regulation 770-986-1372. This unknown approach is an immediate profit center but takes some work to confirm. If you are too busy to undertake these confirmations, we can make the confirmations with the states that you desire and put it in writing so you can present as proof to your lenders and investors. We charge $100 per written confirmation. Remember, this will not be a legal opinion but a recordation of the confirmation by each state agency of the exemption as they see it. Call me at 214-692-7611 and make the arrangements. Best regards, Herb Thomas Thomas Law Firm, P.C., 6116 N. Central Expressway, Suite 922, Dallas, Texas 75206 http://www.thomas-law.com Telephone 214-692-7611 Fax 214-692-7613

Alert: Mortgage License Renewal Deadlines Near This an alert to Mortgage Brokers and Lenders licensed in the states of GA, NE, VA, RI, AZ, CA. Mortgage License Renewal Forms must be filed for the following licenses by the following dates or severe late penalties and/or license revocation may result: NE Mortgage Banker: 3-1-01; VA Mortgage Broker and/or Lender: 3-1-01; CA Finance Lender: 3-15-01; AZ Mortgage Banker: 3-31-01; GA Mortgage Broker and/or Lender: 3-31-01; RI Mortgage Broker and/or Lender: 3-31-01. Now that the refinance boom is in full swing, it would be a shame to lose a state and the loans in the pipeline because you failed to timely renew your license. If you are too busy to deal with the License Renewal nuisance, you can outsource it to us for $250 per renewal (except CA which is $500 due to its massive number of schedules). Your time is too valuable over the next 45 days to have to deal with License Renewals. Outsource it to us and keep your momentum from being interrupted. The cost is nominal for the hassel that you are
relieved of. Call me at 214-692-7611 and make the arrangements. Best regards, Herb Thomas Thomas Law Firm, P.C., 6116 N. Central Expressway, Suite 922, Dallas, Texas 75206 http://www.thomas-law.com Telephone 214-692-7611 Fax 214-692-7613

THOMAS LAW FIRM, P.C.
8080 NORTH CENTRAL EXPRESSWAY
SUITE 890
DALLAS, TEXAS 75206
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