Iowa Administrative Code › Agency 187 - Banking Division › Chapter 19 - Mortgage Loan Originators › Rule 187-19.2 - Mortgage Loan Originator Requirements

Current through Register Vol. 47, No. 3, July 24, 2024
(1) A natural person who applies for a
			 license pursuant to Iowa Code section
			 535D.4
			 to act as a mortgage loan originator in this state shall apply with the
			 superintendent through the NMLS. The superintendent may consider an application
			 withdrawn if it does not contain all of the information required and the
			 information is not submitted to the superintendent within 30 days after the
			 superintendent requests the information.
(2) Prior to applying for a mortgage loan
			 originator license, the applicant must complete the prelicensing education
			 requirements pursuant to Iowa Code section 535D.7.
(3) Prior to applying for a mortgage loan
			 originator license, the applicant must pass the SAFE mortgage loan originator
			 test, which is comprised of two components: a national component and a state
			 component. Applicants must pass each component with a score of 75 percent or
			 higher.
(4) The fee for an initial
			 mortgage loan originator application is $50. This fee is nonrefundable. This
			 fee is in addition to any fees established and charged by the NMLS, any
			 approved education course provider, any approved education testing provider,
			 any law enforcement agency for fingerprints and background checks, or by any
			 credit reporting agency used by the NMLS.
(5) An applicant must provide fingerprints,
			 authorize a fingerprint background check through NMLS, and pay the appropriate
			 fees for the purpose of conducting a national criminal history background check
			 through the Federal Bureau of Investigation. This requirement applies to all
			 individuals, regardless of whether the applicant was previously registered
			 under Iowa Code chapter 535B or if the applicant has previously submitted
			 fingerprint cards for licensure.
(6) Each applicant must provide authorization
			 to obtain a credit report through NMLS.
(7) To engage in activities requiring a
			 license, a mortgage loan originator must be covered under a surety bond that
			 reflects the dollar amount of loans originated, processed, or underwritten, as
			 the case may be, on an annual basis. The bond must be on a form provided by the
			 superintendent. Satisfaction of this requirement shall be met by one of the
			 following:
a. A mortgage loan originator who
			 is an employee or exclusive agent of a company subject to Iowa Code chapter
			 535B, 536, or 536A may be covered by the company's bond.
b. A mortgage loan originator who is not
			 covered by a company bond pursuant to paragraph 19.2(7)
"a"
must provide an individual surety bond meeting the requirements of paragraph
			 19.2(7)
"c."
c.
			 The surety bond amount required to be filed and maintained by or on behalf of a
			 mortgage loan originator who is not an employee or exclusive agent of a company
			 subject to Iowa Code chapter 535B, 536, or 536A shall be set and adjusted
			 annually as necessary in accordance with the following scale, based on the
			 volume of residential mortgage loans originated, processed, and underwritten,
			 as the case may be, by the licensee during the preceding calendar year:
Loans
Bond Amount
$0 - $5,000,000
$25,000
$5,000,001 - $20,000,000
$50,000
$20,000,001 - $50,000,000
$75,000
$50,000,001 - $100,000,000
$100,000
Over $100,000,000
$150,000