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STATES WITH DISTANCE FROM MORTGAGE BRANCH TO RESIDENCE FOR NMLS LICENSE FOR MLOs
What are the states that require distance requirements for loan officers from where they live to the mortgage branch they are sponsored from. There are about a dozen states that require mortgage loan originators to be tied and/or sponsored by a mortgage branch such as a 50 to 100 mile distance requirement. Does anyone know which states have the distance to residency requirements between the branch and the loan officer personal residence?
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3 Replies
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The requirements for mortgage loan officers, including any distance requirements from a residence to a branch, are governed by state-specific regulations under the Nationwide Multistate Licensing System (NMLS). However, the common regulation pertains to the physical office requirement rather than the distance of an officer’s residence from a branch.
Key Points on NMLS Licensing Requirements:
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Physical Office Requirements: Some states require that mortgage companies maintain a physical office within the state as a condition for licensing. This requirement is not universally applied to individual mortgage loan officers (MLOs) in terms of their residence but does apply to the business operations of the mortgage lender or broker for whom they work.
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No Specific Distance Requirements: Typically, there are no specific distance requirements regarding how far an MLO’s residence must be from the branch or office where they work. Most regulations focus on the presence and availability of the MLO to serve clients and manage loans effectively, regardless of where they live relative to the office.
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Remote Work Flexibility: The increasing acceptance of remote work within the financial services industry, particularly highlighted during the COVID-19 pandemic, has led many states to reconsider or clarify rules around physical office requirements. This flexibility often extends to MLOs, who may not need to be physically present in an office daily.
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State-Specific Licensing Requirements: It is crucial to understand that each state may have unique requirements and conditions under its mortgage licensing laws. These can include background checks, education requirements, examination scores, and surety bond requirements, but typically do not include how far an MLO lives from their office.
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MLO Sponsorship: Mortgage loan officers must be sponsored by a licensed entity (broker or lender) that holds a physical office, which is a more common requirement than any stipulation about the MLO’s residence.
If you are considering becoming a mortgage loan officer or starting a mortgage-related business in a specific state, it’s essential to consult that state’s financial regulatory body or a legal expert specializing in financial regulations to understand all applicable requirements. This approach ensures compliance and helps clarify any specifics related to office location and operational mandates.
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Here are the states that require brick and mortar and have distance requirements between mortgage branch and personal residency:
1. New Jersey
2. Wisconsin
3. Oklahoma
4. Louisiana
5. Wyoming
6. Rhode Island
7. West Virginia
8. Mississippi
9. South Carolina
The above states have a 50 mile to 100 mile distance requirement for loan officers between personal residence and the mortgage branch office they are tied to.
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There used to be a lot more states with distance to branch office requirements for loan officers