Mortgage FAQ for Licensees
Where may I obtain a copy of the relevant statutes and rules?
The "Legal" section of the Department's website contains the relevant statutes and rules.
I think that I am exempt from the Fair Mortgage Lending Act. How do I make sure?
The "Fair Mortgage Lending Act" , Ark. Code Ann. § 23-39-502(9)(B), refers to exemptions.
I am a broker in another state who is working a loan for a consumer who does not live in Arkansas but the property is located in Arkansas. Do I need to be licensed?
No, the "Fair Mortgage Lending Act ", Ark. Code Ann. § 23-39-502(9)(xvi), refers to exemptions.
I am a broker in another state who is working with an Arkansas consumer on a piece of property that is not located in Arkansas. Do I need to be licensed?
No, the "Fair Mortgage Lending Act ", Ark. Code Ann. § 23-39-502(6)(B)(xvi), refers to exemptions.
I am a broker in another state and my only contact with Arkansas consumers is sending mail or contacting them by phone. Do I need to be licensed to conduct this type of activity?
Yes, the "Fair Mortgage Lending Act ", Ark. Code Ann. § 23-39-502(11)(A) refers to license requirements.
What are the types of licenses are required in Arkansas?
The "Fair Mortgage Lending Act ", Ark. Code Ann. § 23-39-502(10)(11(14)(15)(17) and Ark. Code Ann. § 23-39-503 contain the definitions and license requirements. The types of licenses available in Arkansas include Mortgage Broker, Mortgage Banker, Mortgage Servicer, and Mortgage Loan Officer.
What financial statements do I need to submit?
The " Fair Mortgage Lending Act ", Ark. Code Ann. § 23-39-505(g), requires audited financial statements for Mortgage Banker, and Mortgage Servicer. Mortgage Broker must submit either audited financial statements or unaudited financial statements. The financial statements must be submitted through NMLS.
What are the Mortgage Broker,Mortgage Banker, and Mortgage Servicer license fee(s)?
Initial licensing fee is $750 for a Mortgage Broker, Mortgage Banker, and Mortgage Servicer plus $100 for each branch location to be licensed. Annual licensing fees are $350 for the main office and $100 for each branch location, as long as the renewal application is submitted in a timely manner.
I have a license for my main office. How do I register a branch office?
To apply for an branch office location, submit the proper forms and fees through NMLS.
Am I required to have a physical office in Arkansas?
No, Arkansas is not a "brick and mortar" state.
Am I required to pay my employee by W-2 or 1099?
No, the "Fair Mortgage Lending Act", Ark. Code Ann. § 23-39-502(8), does not regulate how you compensate your employee as long as you comply with the federal income tax law.
Do I need to be employed with a mortgage company to become licensed as a loan officer?
Yes, you must be affiliated with a Mortgage Broker, Mortgage Banker, Mortgage Servicer before you can become licensed with the Department.
I have completed an application and submitted it to the NMLS to obtain a license in Arkansas. How long will it take to become licensed?
Assuming that all information is contained in the application and no additional information is needed, the Department will complete the review of your application within 30 days of receipt.
I need to renew my Loan Officer license. What process do I need to complete for my renewal?
The "Fair Mortgage Lending Act", Ark. Code Ann. § 23-39-506(c), (d), and (e)(3) defines the renewal process. Ark. Code Ann. § 23-39-507 defines the Continuing education requirements. Renewals must be processed through the NMLS system.
My Loan Officer license has expired. What are my options?
The "Fair Mortgage Lending Act", Ark. Code Ann. § 23-39-506(c), (d), and (e)(3) defines the process for license renewal and penalties for late renewal. The appropriate form and fees must be submitted to the NMLS in order to obtain a license.
Can I originate loans while my application is "OPEN" and pending status?
No, the "Fair Mortgage Lending Act", Ark. Code Ann. § 23-39-503 states that you are required to be approved and licensed before conducting any mortgage loan activity in the State. Unlicensed loan origination activity may be subject to disciplinary action.
Can I do one loan as an exception without having a license?
No, the "Fair Mortgage Lending Act", Ark. Code Ann. § 23-39-503 states that it is unlawful for any person other than an exempt person to conduct business as a mortgage broker, mortgage banker, mortgage servicer, or loan officer in Arkansas without first obtaining a license under this Act. Unlicensed loan origination activity may be subject to disciplinary action.
Can I originate loans for more than one company?
No, the "Fair Mortgage Lending Act", Ark. Code Ann. § 23-39-503(d)(4) states that a Loan Officer shall not be employed simultaneously by more than one (1) mortgage broker or mortgage banker licensed under this Act.
What if I change employers, can my license be transferred?
No, the "Fair Mortgage Lending Act", Ark. Code Ann. § 23-39-505(k) states that licenses issued under this Act are not transferable.
I have a felon conviction. Will the conviction prevent me from getting a license?
Not necessarily. You must provide the Department with as many details regarding the offense as possible, whether there is still probation or parole involved, whether there is or was restitution involved, when the offense took place, etc.
Does Arkansas require any educational requirements or testing required to become licensed?
Fair Mortgage Lending Act, Ark. Code Ann. § 23-39-505(b)(2). A high school diploma or a GED is required, but there are no testing requirements at this time.
Is there a continuing education requirement?
Fair Mortgage Lending Act, Ark. Code Ann. § 23-39-507. If you have been licensed as a loan officer for a period of 180 days, whether consecutive or not, you will need to complete 8 hours of continuing education by December 31st of each year. The "Continuing Education" page of the website provides a list of approved providers.
How do I locate a continuing education class?
The "Continuing Education" page of the website provides a list of approved providers under Rule 5007-2 that may offer approved continuing education classes for loan officers licensed in Arkansas.
What happens if I do not get the required 8 hours of Continuing Education by December 31st?
Pursuant to Rule 5007-1(7), upon written request and payment of a fee of $50, the Department may allow an extension up to 180 days in order to obtain the necessary continuing education hours.
I have over 8 hours of Continuing Education hours. Will I lose those extra hours?
No, you may carry over into the next year up to 8 hours of Continuing Education hours.
What is the disciplinary authority of the Arkansas Securities Department?
Fair Mortgage Lending Act, Ark. Code Ann. § 23-39-514. The Department has the authority to deny, suspend, revoke, or refuse to issue or renew a license of a licensee or applicant.
