Article Summary: This article will help anyone looking for information pertaining to a mortgage license in the state of Louisiana or anyone looking to become a mortgage broker in Louisiana.
In Louisiana the Office of Financial Institutions (OFI),
handles all aspects of licensure and registration for Mortgage Brokers. The Louisiana Residential Mortgage Lending Act
became effective in July, 1999 and was revised in April, 2000, again in June 2001, and again in August, 2003. The Act
defines a Mortgage Broker as any person who for compensation or expectation of compensation, negotiates, places, or
finds or offers to negotiate or place or find a residential mortgage loan for another person on a residential property
located in Louisiana. This includes any electronic activity, including over the internet. The law governs both first
and subordinate mortgages.
Effective August 15, 2005 the exemption from licensure for persons contracting no more than 4 transactions in a calendar year
will be replace by Act 235. Any mortgage transaction involving residential real estate in this state now requires a
Louisiana mortgage license.
Also effective August 15, 2005 persons who desire to become a licensed mortgage originator must obtain a passing grade
on a pre-licensing test issued by the state. The exam will test the applicants knowledge of state and federal laws related
to mortgage lending, servicing, loan products, etc. Certain educational and experienced based exemptions are provided in Act 235.
Applicants who desire to become a Mortgage Broker in Louisiana pay a $400 application fee, and a $300 renewal fee.
They also need to provide audited financial statements reflecting a net worth of at least $50,000, or provide a Surety Bond
in the amount of $50,000, or pledge a $50,000 deposit in a federally insured institution, or pledge $50,000 in securities
SCM?s or US Goverment to the Commissioner.
To become a Mortgage Broker in Louisiana one is not required to maintain an in-state office. However, there is a
$400 examination fee per location plus reasonable and necessary expenses connected with an examination. If records
are kept at a residential location, they must be moved to an approved nonresidential location for review or examination.
The Louisiana Mortgage Lenders Association (LMLA), www.lmla.com, is
an affiliate of the National Association of Mortgage Brokers (NAMB), www.namb.org. Both organizations are dedicated
to improving the business of real estate finance and are a true asset to those who desire to become a Mortgage Broker in Louisiana.
We also offer information and resources for Louisiana Commercial Mortgage