The Iowa Division of Banking (IDB) requires any company (including a sole proprietorship) that makes, originates or services at least four mortgage loans in a calendar year to obtain a banker license. The license authorizes the banker to perform the following:
- First Mortgage Lending
- Second Mortgage Lending
- First Mortgage Brokering
- Second Mortgage Brokering
- First Mortgage Servicing
- Third Party First Mortgage Servicing
- Subordinate Lien Mortgage Servicing
- Third Party Subordinate Lien Servicing
- Master Servicing
- Mortgage Loan Purchasing
- Short Sale
Part of the application includes a $100,000 surety bond. Iowa Code §535B.4 prohibits a person from acting as a mortgage banker or using the title “mortgage banker” without first obtaining a license from the IDB.
As of September 12th, 2016, documents will be filed via the new Electronic surety bonds (ESB) on the Nationwide Multistate Licensing System (NMLS) portal. Existing bankers will need to have their current bonds converted in the system to meet new requirements.
Pacific Surety offers industry low rates and can obtain approvals for almost all credit situations. Once our simple application has been completed, we can have pricing to you within hours. If you have any specific questions, please contact our knowledgeable underwriting staff.