Alabama legislature recognized the need for mortgage broker license to protect the consumer interests. For this purpose a bill was passed that would establish a licensing procedure by the Alabama State Banking Department for certain entities conducting business as mortgage brokers. This bill would provide license application and renewal procedures, fees, criteria for license approvals, and circumstances under which licenses may be denied or revoked.

Following are the points that should be kept in mind while applying for Alabama State Mortgage Broker License:

1. The license application should be made in writing, under oath and in the manner prescribed by the department.
2. Include the required information in the application such as name and address of the applicant as well as the address of the registered office. Also, mention an outline and nature of the business along with any other pertinent data and statements.
3. It is also required that the applicants or whoever is going to be actively involved in the daily operation of the mortgage company should complete at least 12 hours of approved continuing education in primary and subordinated financing transactions. Approved courses are those that are approved by the Alabama Mortgage Bankers Association, the Education Committee of the National Association of Mortgage Brokers, the National Minority Mortgage Bankers Association Incorporated, Alabama Bankers Association, or the Alabama Mortgage Brokers Association. The department has a list of approved schools, courses, programs, and special training sessions.
4. There is an investigation fee and an initial license fee.
5. The applicant should also submit a recent financial statement which demonstrates that the applicant has a bona fide and verifiable tangible net worth capital of twenty-five thousand dollars ($25,000).
6. Include three letters of reference concerning the applicant's good name and reputation in the community. Also three letters of reference from individuals or companies in the lending industry concerning the applicant's experience and expertise are required.
7. The department makes the decision of granting or denying the license within 90 days of obtaining the completed application including all the required items.
8. All Alabama State Mortgage Broker licenses expire on December 31 of each year. Application for renewal shall be made annually on or before December 1 of each year to be effective for the following year. Include annual license fee along with your renewal application.

The Alabama State Mortgage Broker License is regulated by the State Banking Department. Additional information such as original forms, renewal forms and licensing acts can be found on their website. You can also access this information by clicking on this link: State Banking Department - Bureau of Loans