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What States Have a Distance Requirement of MLO Residence to Branch
What states require an NMLS licensed MLO personal residence needs to live within a set driving distance to the sponsoring mortgage company or a brick and mortar branch of the mortgage company. I heard there were 15 states with such distance from personal residence to brick and mortar NMLS COMPANY location. I know Wisconsin, Nevada, New Jersey, and Maryland are some of the states with maximum distance requirements. Also how much does applying for NMLS COMPANY. BRANCH, and Individual license cost.
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This discussion was modified 42 minutes ago by
Gustan Cho.
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This discussion was modified 42 minutes ago by
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3 Replies
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The Claim “15 States Have a 75-Mile Rule”
No reliable source confirms that 15 states require sponsored mortgage loan originators (MLOs) to live within a certain distance of their company or branch. The Nationwide Multistate Licensing System (NMLS) explains that remote work and home office rules differ widely by state. In some states, a home must be licensed as a branch, but in others, this is not necessary.
Verified State-Specific Distance RulesState of Wisconsin
- Wisconsin stands out because it has a 100-mile rule. Mortgage loan originators must be linked to a licensed or registered office or branch that is either their home or within 100 miles of their home.
- If the assigned office is more than 100 miles away, the home must be licensed as a branch.
- The rule says, “within 100 miles,” but does not clarify if this means driving distance or straight-line distance.
State of Vermont
- Vermont requires MLOs to live within a “reasonable commuting distance” of their licensed office.
- The rule does not give a specific number of miles.
The State of New Hampshire
- New Hampshire has a limited 100-mile rule that applies if an MLO’s unlicensed remote office appears on business cards, letterheads, or in directories.
People Often Mention the So-Called 75-Mile Rule When Discussing Distance Requirements in Some States.<div>
State of Maryland
- Maryland no longer asks for a 75-mile Distance Affidavit.
- Since July 31, 2017, Maryland has not required a Distance Affidavit or any fixed-distance rule.
- Maryland should not be listed as a state with mileage rules unless regulators confirm it directly.
- In Nevada, mortgage company employees, including MLOs, can work from home.
State of Nevada
- There are still rules for contacting customers, keeping records, and supervision.
State of New Mexico
- New Mexico no longer enforces a strict mileage limit, even though 75 miles was once a guideline.
- According to the Financial Institutions Division (FID), before COVID-19, 75 miles was considered a reasonable commuting distance to a licensed branch.
- The 2020 telework guidance is still in place for now, but this could change.
- So, it is not accurate to say there is a universal 75-mile rule.
State of South Carolina
- South Carolina manages branch locations instead of setting a maximum distance.
- State law allows an MLO’s home to be licensed as a branch if it is more than 75 miles from a commercial branch office.
State of New Jersey, Nebraska, and Wyoming
- New Jersey, Nebraska, and Wyoming should not be listed as states with fixed distance rules unless there are current written rules from state officials.
- Even though these states appear on some private compliance lists, there is no recent confirmation from the main regulators of a universal mileage or drive-time rule.
NMLS Application and Renewal Costs
There is no single “NMLS company license.” A company applies for licenses with individual state agencies through NMLS. The NMLS processing fees are charged per agency, per license and are separate from state licensing fees.
A company also pays a $35 NMLS MLO change-of-sponsorship fee for each MLO license being sponsored in a state.
For a simple 15-state illustration, the NMLS-only fees would be:
- One Company License in 15 States: $1,800, Plus State Fees.
- One Branch License in 15 States: $375, Plus State Fees.
- One MLO License in 15 States: $525, Plus State Fees.
- Annual NMLS Renewal Fees are the Same Amount, Before State Renewal Fees.
For a new individual MLO, common additional NMLS charges can include a $36.25 criminal background check, $15 credit report, and $110 national SAFE test, when applicable.
- State application fees, branch fees, bond requirements, state education, state testing, annual reports, and other requirements are additional.
- NMLS directs companies to use its License Requirements and Fees Chart and the state-specific checklist compiler for the exact state-by-state total.
- Credit-card payments through NMLS add a 2.5% service fee; ACH payments do not.
Forum-safe wording: “Distance and remote-work requirements are not uniform nationwide. Wisconsin has a clear 100-mile assignment rule, while other states may use reasonable-commuting, branch-registration, supervision, or remote-work standards. Companies should obtain current written confirmation from the applicable state regulator before assigning a remote MLO or renewing a branch license.”
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After careful review, you are not answering my question. Let’s take the current branch of NEXA Lending in Westmont, Illinois managed by myself, Gustan Cho, but Gustan Cho is leaving Nexa Lending to Coast 2 Coast Mortgage LLC and offers the NEXA Lending Branch in Westmont Illinois NMLS 2315275 to experienced business associate and close friend, Michelle McCue. Let’s analyze how much the Westmont Illinois branch cost Gustan Cho and what are the states that the Westmont Illinois branch has a personal residence of Gustan Cho (Salem Wisconsin) to branch office (Westmont, Illinois)
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You’re right. The question is whether Gustan’s residence in Salem, Wisconsin, requires the Westmont branch to hold certain state licenses, and what the branch costs him while he delegates the management to Michelle.
Bottom Line
Gustan’s residence in Salem cannot be the singular reason for the licensing of 48 branches of Westmont. The only state regulation we are aware of that would concern Gustan’s Salem-to-Westmont scenario is Wisconsin’s.
The Westmont branch is somewhere in the mid-60-mile range from Salem, depending on what Gustan’s home and routes look like. That is comfortably within Wisconsin’s 100-mile rule and is likely within South Carolina’s 75-mile rule of thumb. For the sake of compliance, NEXA should keep on file a dated distance calculation from Gustan’s residence to 999 Oakmont Plaza Drive, Suite 600, Westmont, Illinois.
Relevant States for Gustan’s Salem-to-Westmont Relationship<div>
Wisconsin — Yes, This is the One State with a Definite Rule.
In Wisconsin, an MLO needs to be assigned to a licensed or registered office that is at the MLO’s residence or within 100 miles of the residence. If the assigned office is farther away, the MLO’s residence must be licensed as a branch office. Considering the Salem-to-Westmont distance, it seems that Gustan complies with Wisconsin’s 100-mile rule from Westmont. His residence in Salem should not be required to be licensed as a Wisconsin branch because of the distance.
South Carolina — of Some Relevance, but it is Not a Hard 75-Mile Limit
In South Carolina, a personal residence may be licensed as a branch if it is more than 75 miles from the commercial branch. The law states that the regulator may license the residence, but it does not require that every MLO live within 75 miles of a branch. Since Salem looks to be within 75 driving miles of Westmont, this provision should not create a Salem home-branch issue for Gustan.
West Virginia — Should There be a 100-Mile Limit, Potentially, But Only if NEXA’s WV Structure Applies
In West Virginia, employees of a West Virginia licensee may work from home if the home is within 100 miles of a licensed West Virginia corporation or branch office. This is also subject to detailed privacy, supervision, and record-security concerns. This is not automatically solved by the Illinois branch.
NEXA Licensing must verify if the Westmont Office has the appropriate licensing and assignment for West Virginia.
New Hampshire – Conditional Rule, Different from Salem to Westmont
New Hampshire law stipulates a 100-mile limit when an MLO’s unlicensed remote address is indicated on a business card, letterhead, or directory. This is an advertising/address issue, not a blanket rule for all remote MLOs. Without NEXA compliance approval, the Salem address cannot be represented as a New Hampshire business address.
States to Eliminate from the “Distance-Rule”
- As of July 31, 2017, the 75-mile Distance Affidavit is no longer required in Maryland.
- In Nevada, remote MLO work from a residence is allowed as long as flexibility, security, and control of supervision, communication, and customer contacts, among others, are met.
- Nevada, therefore, cannot impose a Salem-to-Westmont fixed distance.
- Kansas MLOs was also previously required to work within a reasonable commuting distance, but this is no longer the case.
- Remote work is now allowed, provided NEXA controls the security and supervision of the MLO.
- I will not list New Jersey, Nebraska, or Wyoming as states with confirmed distance requirements, unless I receive official communication from NEXA Licensing or the respective state regulators.
- They may be on some private compliance lists, but that does not constitute sufficient grounds for a formal relocation or public posting.
The Actual Cost of the Westmont Branch for Gustan
According to the information you sent to me:
- The Westmont branch is approximately $500 monthly, which covers rent, internet, utilities, and other standard office costs.
- This puts public knowledge of fixed operating overhead at below $6,000 annually.
- The one-month security deposit is roughly an equivalent cost of one month’s occupancy, but it may not constitute a cost since a return and/or transfer are possible.
- All costs pertaining to branch licensing for 2026 have been settled.
- Since the branch operates on a month-to-month basis, transitioning the office side of the operation is much simpler than transferring a long-term lease.
The $100 per-MLO sponsorship fee is branch income, not a branch operating cost. With your estimate of 12 billable MLOs, that is:
- $1,200 per month
- $14,400 per year
MLO sponsorship revenue is also more than $8,400 greater than the known office overhead per year, excluding branch expenses, and in addition to licensing, NEXA fees, commissions, processing, insurance, tech, compliance, and other costs.
What We Know and Don’t Know About Licensing Costs
Currently, the NMLS branch filing fee is $25 per state agency per year, plus the state’s branch renewal fee. If Westmont really does hold active branch licenses in 48 state agencies, the annual NMLS branch renewal fee would be $1,200. This estimate excludes state renewal fees, bonds, company fees, and other NEXA fees.
The NMLS fees for a company license are $120 per state agency, and the annual MLO fee and fees for a change of MLO sponsorship are $35 per state agency. These MLO and company fees should not be automatically assumed for the Westmont branch.
The specific amounts Gustan paid in the past for all Westmont licenses are not public information and cannot be known. During this review, NMLS Consumer Access was unavailable for a live license record export. The answer requires reviewing NEXA’s branch transaction history, renewal invoices, state licensing and bonding invoices, and the accounts payable ledger.
Business Conclusion Regarding the Transition of Michelle
Michelle is not receiving Gustan’s personal licenses. She will be taking over the operating Westmont branch structure under NEXA and will be subject to NEXA, state, and NMLS changes, as well as lease changes and Qualified Individual requirements.
Since NEXA is still the sponsoring company and the branch licenses for 2026 are already covered, this should not mean another 48-state branch licensing cost.
Likely immediate matters include changes to managers/QIs, amendments to states as required, an internal compliance review, an office key transfer, paperwork for the lease and deposit, and a written MLO sponsorship and account reconciliation.
The short answer is that Wisconsin is the only confirmed state that allows us to keep Gustan in Westmont rather than Salem. His residence does not seem to require a Salem branch. There is no reasonable compliance issue with the renewal of every Westmont branch license simply because Gustan resides in Salem, Wisconsin.
- Mortgage Banking FAQs
- South Carolina Code of Laws Title 37
- West Virginia Code | §46A-4-114
- State of New Hampshire – Mortgage Bankers Association
- NRS: CHAPTER 645B – MORTGAGE COMPANIES AND …
- Mortgage, Supervised Loan, and Credit Notification Filers – Guidance Documents for Remote Work – Kansas Office of the State Bank Commissioner
- NMLs Processing Fees
- NMLS Consumer Access
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