Before one can engage in residential mortgage lending activity in Louisiana, one must first obtain a residential mortgage lending license and follow the license application procedures. The basic licensing process is fairly simple: you must first complete your pre-license education, pass the national and state components of the license exam, and comply with all license application procedures with OFI.
The law in Louisiana now requires 20 hours of pre-license education under the SAFE Act and 8 hours of continuing education for license renewal. This is great news for mortgage applicants and licensees in Louisiana, as it makes education more readily available for those who need it. DONALDSON MORTAGE CLASSES MEET ALL REQUIREMENTS UNDER THE NEW LAW!
Residential Mortgage Lending License Requirements
(Effective August 15, 2010)
An applicant for a Louisiana Residential Mortgage Lending License must be at least 18 years of age.
In order to receive a mortgage license in the state of Louisiana, one must first take a 20 hour pre-license course which has been approved by the NMLS. Once this course is completed, the applicant must then pass a state exam on the topics covered in the pre-license course.
DONALDSON'S MORTGAGE PRE-LICENSE PROGRAM MEETS ALL NEW 2010-2011 REQUIREMENTS!
Unless specifically exempt from the licensing provisions in certain circumstances, anyone who engages in residential mortgage lending activities including mortgage lenders and brokers must be licensed. Employees who originate loans for mortgage lenders or mortgage brokers must be licensed as loan originators. Many of the previously exempt categories have been removed due to recent license law changes - If you believe one of the exemptions is applicable to your activity, contact OFI for verification.
In Louisiana, there is no state residency requirement to have a Louisiana Residential Mortgage Lending License. You are required to be a United States Citizen or a Legal Alien.
The Licensing Process:A Step-By-Step Guide
Step 1: Register for the 20 Hour SAFE Comprehensive License Course. Refer to our Course Schedules on the right side of this page. You may also register by calling one of our Customer Service Representatives at 456-1785 in the Greater New Orleans Area or Toll Free at 1-800-257-2741.
Step 2: Register for and pass both the national and state components of the SAFE Compliance Exam. Once you have passed the exam, you will need certification of passing to apply for your license.
Step 3: The next step in the licensing process is to submit the Certificate of Completion and the License Application to the Office of Financial Institutions. You must also submit to OFI a $100 License Fee for Originators or a $400 License Fee for a Broker.
Step 4: Broker Financial Responsibility (Brokers Only!) Brokers are also obligated to submit forms showing Financial Responsibility. Brokers can demonstrate Financial Responsibility in one of the following four ways:
$50,000 net worth as determined by an audited financial statement. This statement must be prepared by a CPA, meet the independence requirements of the profession, and must be less than 12 months old.
$50,000 surety bond in the applicant's name issued to OFI and issued by an insurance company licensed to do business in Louisiana.
$50,000 cash deposit pledged to the commissioner and deposited in a FDIC institution.
$50,000 in securities pledged to and approved by the commissioner.
