Law/Rules
Mortgage Lending Act, N.C. Gen. Stat. §53-243.01 et seq.
See also administrative rules of the Commissioner of Banks, N.C. Admin. Code tit. 4, ch. 3M (“Mortgage Lending”).

License Required? Exclusive Agent Exemption?
Yes, if the person, for compensation, directly or indirectly accepts, or offers to accept, mortgage loan applications, solicits mortgage loans, negotiates the terms of mortgage loans, issues loan commitments or rate-lock guarantees, or table funds mortgage loans they must be licensed as a loan officer. No exclusive agent exemption (see next item).

Originator Licensing or Registration?
Rules for Licensing or Registration
Individual loan officers employed by licensed mortgage brokers must be individually licensed and cannot be employed simultaneously by more than one mortgage broker or lender.

Experience Required
Applicant for a mortgage broker license (or its principal officer, manager or control person) must have at least three years experience in residential mortgage lending and a minimum 600 Beacon credit score.

Education Required
Loan officers must complete a mortgage lending fundamentals course with at least 24 hours of classroom education (effective October 1, 2008) and pass a written exam. Loan officers must complete eight hours of education annually as a condition of license renewal.

Criminal Background Check?
Yes, both responsible persons for the broker and the loan officers must provide criminal history information, consent to a criminal record check and provide fingerprint cards.

In-State Office Required? (Bricks & Mortar)
Yes, a licensee must have a place of business in NC where he/she can meet with potential loan applicants; it must be at least one enclosed room. Requests for an exemption to this rule must be submitted to the Commissioner's office.

Duration of License & License Renewal Dates
Licenses expire annually on December 31^st (Effective June 30^th, 2007). Failure to renew in a timely manner results in late fee of $50. Failure to renew within 90 days of the expiration date results in license termination, which requires they go through the entire licensing process again from the beginning no matter what their experience level.

License Related Fees
All license applications include a $30 fee from the NMLS for registration Loan Officer license application fees include $67.50 application fee, plus $8 for credit check and $38 for criminal history record check (total = $143.50). Annual license renewal = $67.50. Initial mortgage broker and exclusive mortgage broker non-refundable application & license fee: $1,870 plus $187.50 for each branch office plus $46 per individual criminal record check required.
License renewal fee $937.50 for mortgage broker and exclusive mortgage broker plus $187.50 for each branch office.

Comments & Other

— The NC Commissioner of Banks conducts criminal history checks on license applicants; applicants are required to provide fingerprints. You cannot have a felony in the last 10 years.

— Mortgage broker licenses are not assignable; change of control requires the advanced permission of the Commissioner of Banks.

— Change of location requires notice (no later than 15 days after the change).

— Branch offices are separately licensed and must be under the control of a person with the required 3 years experience.

— Designated branch manager must be a licensed loan officer.

— Change of branch manager must be reported.