Incorporations and LLCs

• If you intend to open a mortgage lending business, you'll need to incorporate the business or register it as an official LLC (Limited Liability Company). In order to fully register as an LLC, you'll need at least two people designated as employees. The process for establishing an LLC is rather simple, and merely requires a fee, a business name, a business purpose, business officers, and financial record keeping that will be scrutinized the following year. An incorporation is more involved; hiring an attorney to walk you through the process is recommended.
  
  

Officers

• In order to qualify for a license, you'll need to have a senior officer in the company who has at least three years of mortgage lending experience. While you yourself may be starting out with a new mortgage business, you'll need to recruit a current mortgage salesperson to act as a senior overseeing member of the LLC or S-Corp to ensure compliance with banking regulations is tantamount to your business.
  
  

Place of Business

• The retail operation of the business must be rented in a commercially zone property. It is illegal to conduct mortgage lending from a private residence. This is essential to the licensing body and must be documented and provable.
  
  

Letter of Sponsorship

• In order to open a mortgage origination business, you must have investors or other lenders behind you willing to both vouch for your business and supply to necessary funds to finance your mortgages. These investors must write letters of recommendation to the licensing committee on your behalf.
  
  

Capital

• Your business should be well-capitalized before you can become licensed. Generally, the licensing body wants to see both experience in the mortgage business and a strong balance sheet. This usually means having at least $75,000 in capital reserves after expenses and start-up costs.