Mortgage Broker, Lender and Servicer

Becoming a Mortgage Broker, Lender and Servicer

Tennessee issues two forms of licensure for mortgage brokers, lenders and servicers:

1. Mortgage Licensee License (TCA §45-13-103(a)) for non-government guaranteed brokers, lenders and servicers.

   The Mortgage Licensee License requires a surety bond in favor of the People of the State of Tennessee. The amount of the bond is:

Mortgage Brokers: $90,000

Lenders and Servicers: $200,000

Licensees who choose to broker and lend and/or service loans are only required to carry the higher bond amount of $200,000.

Licensees may operate as brokers, lenders and/or servicers concurrently under the same license

2. Mortgage Registrant Certificate of Registration (TCA §45-13-103(b)(1)) is issued to those brokers, lenders and servicers who are approved by any of several Federal Agencies (e.g. Federal National Mortgage Association, Federal Home Loan Mortgage Corporation, the U.S. Veteran’s Administration, or the U.S. Department of Housing and Urban Development).

Mortgage Registrants are not required to maintain a surety bond.

Registrants may operate as brokers, lenders and/or servicers concurrently under the same license

Additionally, TCA §45-13 was amended as of January 1, 2005, to require the registration of Mortgage Loan Originators (TCA §45-13-126 with definition at TCA §45-13-102(13) as amended May 26, 2005).

Mortgage Loan Originator registration requires a $100.00 fee per originator. The Tennessee registration requires a separate form and check from the Mortgage Licensee or Registrant application.

Also required is the Designation of Managing Principal Form which identifies the individual responsible for the Tennessee operations of the company. There is no fee for this form. The person designated as Managing Principal should be the signatory of the Mortgage Licensee or Registrant application form.