Does the state require a physical location within the state?
A mortgage loan broker in Alabama must maintain a physical presence in the state.

Is there individual loan officer licensing?
No, A natural person who is employed by a licensed mortgage broker or any person exempted from the licensing requirements when acting within the scope of employment is exempt from licensing.

What are lenders, brokers and loan officers called?
The terms mortgage lender and mortgage broker are used in Alabama when referring to company licensees. Individuals are usually referred to as loan officers.

Is there state reciprocity across state lines?
As of this writing, there is no recipricity.

What is the cost of a license? Surety bond? Are there net worth requirements?
Unless a lender is an exempt FHA-approved mortgagee or another type of supervised financial institution that is exempt from licensing under the Alabama Mini-Code, the licensing provisions apply and a Consumer Credit license must be obtained before making loans in Alabama. An applicant must submit the application and a $100 investigation fee to the State Banking Department, Bureau of Loans. The applicant must have assets available for the operation of business of at least $25,000. A separate license must be obtained for each office location and posted in a conspicuous place. An annual license fee of $500 for each office is due initially when the license is obtained and annually by October 1 of each year.

An applicant for a mortgage broker license must submit an application with an investigation fee of $100 and an initial license fee of $500. A financial statement of the applicant showing a tangible net worth of $25,000 must also be submitted. A mortgage broker licensee must obtain a license for each location where the business of the mortgage broker is transacted. All licenses expire on December 31; application for renewal shall be made annually on or before December 1.

Is there a pre-licensing education requirement? Is there a test?
Evidence of the satisfactory completion of at least 12 hours of approved continuing education must be submitted with the original mortgage broker application. There is no pre-licensing test.

Is there a CE requirement?
Yes, the satisfactory completion of at least 12 hours of approved continuing education in primary and subordinated financing transactions by the officers and principals of the broker licensee who are actively involved in daily operations of the licensee.

Are there different requirements for mortgage brokers and mortgage lenders (i.e. can you broker under a lender license)?
Brokers and lenders (unless exempt by statute) must be separately licensed.

Are there any state specific high cost loan provisions?
There are no state specific high cost loan provisions.

Are there any state specific predatory lending laws?
There are no state specific predatory lending laws.

Closing practices – attorney or title state? Wet or dry settlement?
Alabama is treated as a wet funding state by practice. There is no penalty for not delivering funds with closing documents, but closing may be delayed if funds are not delivered.

Are there 2nd mortgage policies and/or restrictions? Do you need a separate license to do 2nd mortgages?
Lender and broker licensing in Alabama encompasses both first and second mortgage transactions.

Who is the regulator and what is their contact information?
State Banking Department
401 Adams Avenue
Suite 680
Montgomery, AL 36104
Phone: (334) 242-3452
www.bank.state.al.us/

DISCLAIMER: The data contained here is for informational purposes only. It should not be the sole resource for licensing decisions. Please consult the regulator and/or an attorney that specializes in these matters before taking action.


Back to top