Mortgage and Loan Modification Section Information and Forms
The Idaho Annual Composite Report is no longer a required filing. Quarterly MCR filings through the NMLS has replaced this requirement.
On July 1, 2009 the new Idaho Residential Mortgage Practices Act (IRMPA) became effective. The IRMPA incorporates new licensing requirements mandated by the federal SAFE Act and also includes new requirements for mortgage loan modification companies. Particular attention should be made to the restriction on fee collection and related timing.
Approved licenses may be verified on the Department’s website in the approved licensee and registrant section or on the Consumer Access website for the Nationwide Mortgage Licensing System and Registry (NMLSR) at http://www.nmlsconsumeraccess.org.
Credit reports will be required for all MLOs during the license renewal process beginning November 1, 2010. Current information on these requirements and their availability to Idaho licensees and applicants may be found on the NMLSR website at https://mortgage.nationwidelicensingsystem.org/Pages/default.aspx in the “Professional Requirements” section. Check this information regularly.
No MLO license will be renewed until the SAFE Act licensing requirements have been met and can be verified in the NMLSR. If you attempt a license renewal prior to completion of all SAFE Act licensing requirements, or with deficiencies attached to your license status, it will contain a false attestation and you may be subject to a reportable administrative action.
Pre-license education requirements consist of: three (3) hours instruction on ethics; three (3) hours instruction on federal law and regulations; two (2) hours instruction on lending standards for non-traditional mortgage products; two (2) hours of Idaho law directly related to the IRMPA and Rules; and ten (10) hours instruction on elective topics. All instruction must be approved by the NMLSR.
Continuing education annual requirements consist of: three (3) hours instruction on federal law and regulation; two (2) hours instruction on ethics; two (2) hours instruction on lending standards for non-traditional mortgage products; and one (1) hour related to the IRMPA and Rules. All instruction must be approved by NMLSR.
Control Persons, including those individuals identified as Qualified Persons in Charge (QPIC), will be required to submit fingerprints/criminal background checks and credit reports once the NMLSR has the functionality in place.
Idaho communicates with its licensees and pending applicants primarily through email. Loan originators are required to provide and maintain a personal email address in the NMLSR. This allows communication from the Department and the NMLSR regardless of employment or sponsorship status as it pertains to the license, renewals, training, etc.
Each applicant and licensee, whether an individual or a company, is responsible for the accuracy of the information in its MU Forms in the NMLSR. Each loan originator and control person is responsible for the information contained in his or her Form MU2 or Form MU4 and must attest to the accuracy and truthfulness of the submitted information prior to transmission to any regulator. Incorrect, incomplete and false information filed will delay the approval processes, may jeopardize an approved license status and may result in an administrative action against the applicant or licensee.
Before applying for a license you should consult the jurisdiction specific requirements for Idaho on the NMLSR website in the State Licensing Resource Page section. Additional resources available are tutorials, work flow guides, quick guides, navigation guides and sample forms. If you wish to apply for a license and currently do not have an account on the NMLSR, visit Getting Started, which will walk you through the application process.
Beginning August 1, 2010, no license will be issued until the national test component, Idaho state test component and criminal background check process have been completed. Credit reports will be required for all MLOs during the license renewal process beginning November 1, 2010.
The NMLSR Call Center is available from 9:00am-7:00pm EST at (240) 386-4444. Contact the Call Center for technical and system navigation questions and support.
What License Type Should I Apply For?
(Additional information available at https://mortgage.nationwidelicensingsystem.org/Pages/default.aspx)
Mortgage Broker/Lender License: This license is required of any company or sole proprietor, regardless of location, conducting direct or indirect mortgage origination or mortgage modification activity for compensation or gain, or in the expectation of compensation or gain, on residential real estate located in Idaho. This license type also applies to Credit Union Service Organizations(CUSO).
Regulated Lender: This is required of any company or sole proprietorship, licensed under the Idaho Credit Code, Idaho Code § 28-41-101 as a regulated lender, regardless of location, conducting direct or indirect mortgage loan origination or mortgage loan modification activity on dwellings located in Idaho for compensation or gain, or in the expectation of compensation or gain.
Exempt Entity Registration: This registration is required of any entity or sole proprietorship, that: 1) conducts independent contractor mortgage loan processing or mortgage loan underwriting services on behalf of Idaho mortgage broker or mortgage lender licensees or regulated lender licensees and registrants on dwellings located in Idaho, but DOES NOT conduct or engage in mortgage origination activities; or 2) is an exempt entity under Idaho law engaging in mortgage loan origination activities through independent contractors required to be licensed as mortgage loan originators by Idaho law. This registration is NOT available to mortgage broker/lender companies or regulated lender companies.
Mortgage Loan Originator License: This license is required of any natural person conducting residential mortgage loan origination, residential mortgage loan modification, independent contractor mortgage loan processing or independent contractor mortgage loan underwriting activities in Idaho on behalf of a mortgage broker, mortgage lender, regulated lender or exempt entity from locations licensed to conduct activity in Idaho. Sponsorship limitations may apply.
- Licensees are not required to maintain a physical location in Idaho
- Net branching is not allowed—branch arrangements must meet HUD minimum standards
- There is no “one-time exemption” from licensing for individuals regularly engaged in mortgage brokering, mortgage lending or mortgage modification activities. Companies completing a transaction for no compensation must complete a No Compensation Exclusion Request form and send/fax to the Department for approval
- Exempt entities include, but are not limited to, certain financial institutions, governmental entities, wholesale lenders (may require alternate licensing for 2nd mortgage retail activity), and active Idaho-licensed attorneys and accountants
- Sole Proprietors must obtain both a mortgage broker/lender company license and a mortgage loan originator license.
- Individuals may be employed by or associated with more than one Idaho licensee. However, loan origination and loan modification activities must be exclusive to one Idaho licensee. If you are applying for a mortgage loan originator license and you are associated with more than one mortgage or loan modification company, or are contemplating affiliating with more than one mortgage or loan modification company, you must complete a Loan Originator Exclusivity Agreement form
Criminal Background Check Standards: In order to obtain or maintain a mortgage
loan originator license (or potentially to qualify as an acceptable QPIC or control
person in Idaho), the following items will be considered:
- No felony conviction, plea or finding during the previous seven (7) years;
- No felony conviction, plea or finding at any time if the felony involved an act of fraud, dishonesty, breach of trust or money laundering;
- Note: “Felony” includes an offense punishable by a sentence of at least one year imprisonment and/or a fine of at least $1,000. The term also includes a military general court martial.
Get Started in the NMLSR ( click here )
Idaho Jurisdiction-Specific Requirements ( click here )
- Idaho Telecommuting Policy: PDF
Related Links and Information
- Idaho Financial Responsibility Policy 2018-01 and FAQs: Policy PDF | FAQs PDF
- Loan Modification Memorandum: PDF
- NMLSR Resource Center
- Department of Finance and Real Estate Commission - Joint Short Sale Guidance and Frequently Asked Questions