FAQ - Mortgage Agents, Residential Mortgage Loan Originators, Processors & Underwriters

Mortgage Agents, Residential Mortgage Loan Originators, Processors & Underwriters

1. Who needs to obtain a license as a mortgage agent under NRS 645B?

Any natural person who meets the following criteria must be licensed as a mortgage agent:

  • Is employed by a mortgage broker or mortgage banker and performs any activity as an employee of the mortgage broker or mortgage banker that would otherwise require the individual to be licensed as a mortgage broker or mortgage banker.
  • Is designated as a qualified employee by the mortgage broker or mortgage banker 
  • Is a mortgage broker or qualified employee who wishes to engage in activities as a residential mortgage loan originator or to supervise a mortgage agent who engages in activities as a residential mortgage loan originator. (NRS 645B.405)
  • Is a person licensed as a mortgage banker under NRS 645E and who engages in activities as a loan originator or who supervises a mortgage agent who engages in activities as a loan originator, and any employee or independent contractor of a mortgage banker who engages in activities as a loan originator. (NRS 645E.290)
  • Is a residential mortgage loan originator
  • Is a loan processor who is an independent contractor and who is associated with a mortgage broker, mortgage banker, or person who holds a certificate of exemption.
  • Any individual, who, on behalf of an installment loan lender licensed under chapter 675 of NRS, takes a residential mortgage loan application or negotiates terms of a residential mortgage loan related to a mobile or manufactured home.
  • Any individual who is authorized to engage in the activities of a residential mortgage loan originator on behalf of a privately insured institution or organization licensed under title 55 or 56 of NRS.

(NRS 645B.0125)

2. What is a residential mortgage loan originator?

A residential mortgage loan originator is a natural person who takes a residential mortgage loan application or offers or negotiates terms of a residential mortgage loan for compensation or other pecuniary gain.

A residential mortgage loan originator does not include:

  • A loan processor, underwriter, or other natural person who performs clerical or ministerial tasks as an employee at the direction of and subject to the supervision and instruction of a person licensed or exempt from licensing under NRS 645B, unless the person who performs such clerical or ministerial tasks is an independent contractor; or
  • A person solely involved in extensions of credit relating to timeshare plans

(NRS 645B.01325)

 

 

3. Who is a loan processor?

A loan processor is a natural person who:

  • Receives, collects, distributes, or analyzes information that is commonly used for the processing of a residential mortgage loan; and
  • Communicates with a consumer to obtain the information necessary for the activities described above.

Activities of a loan processor do not include communication offering or negotiating loan rates or terms or counseling consumers about residential mortgage loan rates or terms.
(NRS 645B.0124)

 

4. How do I apply for a mortgage agent (residential mortgage loan originator) license?

To obtain a license as a mortgage agent, a person must:

  • Be a natural person;
  • File a written application for a license as a mortgage agent with the Office of the Commissioner through the NMLS utilizing the MU-4 Form;
  • Comply with the applicable requirements of NRS 645B; and
  • Pay an application fee set by the Commissioner.
  • Deposit and maintain a corporate surety bond.

In addition, a person must

  • Be employed by, or have received an offer of employment from, a mortgage broker or mortgage banker;
  • Be associated with or employed by, or have received an offer of a contract with or an offer of employment from, a person who holds a certificate of exemption pursuant to NRS 645B.016; or
  • Be a loan processor who is not an employee and who is associated with, or has received an offer of a contract with, a mortgage broker, mortgage banker, or person who holds a certificate of exemption pursuant to NRS 645B.016.

A person who wishes to receive an initial license as a mortgage broker or mortgage agent must:

  • Complete at least 30 hours of instruction in approved courses from the subjects set forth in NAC 645B.363;
  • Successfully pass the National Test Component and State Components of the S.A.F.E. MLO Test;
  • Give written consent for an investigation of his or her credit history, criminal history, and background;
  • All Control Persons are required to authorize a background investigation. Each Control Person is required to submit a fingerprint card and a NV Civil Applicant Waiver;
  • Include a verified statement from the mortgage broker, mortgage banker, or person who holds a certificate of exemption pursuant to NRS 645B.016 with whom the applicant will be associated or employed which accepts responsibility for the activities of the applicant as a mortgage agent.
  • Be covered by the surety bond held by the sponsoring entity.


For help with the NMLS mortgage agent application, see the Individual New Application Agency Requirements Checklist or the Quick Guide for Submitting a Complete Individual Form on the NMLS Website.
(NRS 645B.0137; NRS 645B.042; NRS 645B.410)

 

5. Can a mortgage agent work for more than one licensee or exempt company?

No. A person licensed as a mortgage agent may not be associated with or employed by more than one licensed or registered mortgage broker or mortgage banker or person who holds a certificate of exemption at the same time.
[NRS 645B.450(1)(2)]

6. How do I change or terminate an association or sponsorship for a mortgage agent?

If a mortgage agent terminates his or her association or employment with a mortgage broker, mortgage banker, or exempt person who holds a certificate of exemption pursuant to NRS 645B.016 for any reason, the mortgage broker, mortgage banker, or person who holds a certificate of exemption must, not later than the third business day following the date of termination:

  • Remove its sponsorship of the mortgage agent from the Registry (NMLS); or
  • If the mortgage agent is not required to be registered with the Registry, deliver to the Division and to the mortgage agent at the last known residence address of the mortgage agent a written statement which includes the name, address, and license number of the mortgage agent and a statement of the circumstances of the termination.

Sponsorships can only be initiated by a company, but may be removed by the company or the individual through NMLS. NMLS automatically notifies the Division when the sponsorship is removed.

For more information on how to navigate changes in association or sponsorship in the NMLS, please review the Help Document for Modifying an Active Relationship on the NMLS Website.
[NRS 645B.450(3)]

7. Is a license required to conduct mortgage agent activity related to commercial real estate?

Yes. A person who conducts the activity of a mortgage agent in relation to commercial real estate is required to obtain and maintain a mortgage agent license and be employed and sponsored with a licensed mortgage broker or mortgage banker or a person who holds a certificate of exemption.
(NRS 645B.0127)

 

8. Are there any exemptions to the licensing requirements for residential mortgage loan originators under NRS 645B?

Yes. The following individuals are not required to obtain a license as a mortgage agent:
1. A person who performs only clerical or ministerial tasks as an employee at the direction of and subject to the supervision and instruction of a person licensed or exempt from licensing under NRS 645B or NRS 645E, unless the person who performs such clerical or ministerial tasks is an independent contractor. “Clerical or ministerial tasks” is defined in NRS 645B.0104.
2. A natural person who only offers or negotiates terms of a residential mortgage loan:

a) with or on behalf of an immediate family member of the person;
b) secured by a dwelling that served as the person’s residence; or
c) if:
  • the residential mortgage loan is for a manufactured home, as defined in NRS 118B.015;
  • the residential mortgage loan is financed by the seller; and
  • the seller has not engaged I more than five such loans in this State during the immediately preceding 12 consecutive months.
3. A person solely involved in extensions of credit relating to timeshare plans, as that term is defined in 11 U.S.C. 101(53D).
4. A person or entity which only performs real estate brokerage activity and which is licensed or registered in accordance with Nevada law, unless the person or entity is compensated by a lender, mortgage broker, mortgage banker, or other residential mortgage loan originator or by any agent of such lender, mortgage broker, mortgage banker, or other residential mortgage loan originator. (NAC 645B.400)
(NRS 645B.015)
 

9. Are loan processors required to obtain a mortgage agent license?

A loan processor is not required to obtain a mortgage agent license with the Division if the loan processor is:

  • A W-2 employee loan processor for a licensed mortgage broker or licensed mortgage banker. The loan processor must work from a licensed location and be under the direction and supervision of the licensed mortgage broker or licensed mortgage banker.
  • A W-2 employee loan processor for a loan processing company that has a mortgage broker license or has obtained a certificate of exemption. The loan processor must work from a licensed or registered exempt location and be under the direction and supervision of the licensed mortgage agent.

A loan processor is required to be licensed as a mortgage agent with the Division if the loan processor is:

  • An independent contractor loan processor (receives a 1099) for a licensed mortgage broker. The loan processor must work from a licensed location of the mortgage broker.
  • An independent contractor loan processor (receives a 1099) for a loan processing company that has a mortgage broker license or a certificate of exemption.
  • An owner of a licensed loan processing company that independently contracts (receives a 1099) with licensed mortgage brokers or licensed mortgage bankers to process loans. The W-2 employees and independent contractors (1099 paid workers) must work from a licensed or registered exempt location. The independent contractors (1099 paid workers) must be licensed as mortgage agents.

If you have any further questions, please contact the Division of Mortgage Lending at (702) 486-0782.