VA Mortgage Lender License New Application Checklist (Company)

Transcription

1 VA Mrtgage Lender License New Applicatin Checklist (Cmpany) CHECKLIST SECTIONS General Infrmatin License Fees Requirements Cmpleted in Requirements/Dcuments Upladed in Requirements Submitted Outside f GENERAL INFORMATION Wh Is Required t Have This License? Any persn wh directly r indirectly riginates r makes mrtgage lans Wh Is Nt Required t Have This License? Any persns exempt frm licensure pursuant t any f the subsectins f f the Cde f Virginia Reference: Chapter 16 f Title 6.2 f the Cde f Virginia ( et seq.) and the Virginia State Cmmissin's Rules Gverning Mrtgage Lenders and Brkers (10 VAC et seq.) Activities Authrized Under This License This license authrizes the fllwing activities (nte - these activities are nt specifically defined by the Cde f Virginia; hwever, the terms as defined by fall within Virginia s statutry definitin f a mrtgage lender): First mrtgage lending Secnd mrtgage lending Hme equity lending Reverse mrtgage lending High cst mrtgage lending Mrtgage lan mdificatins (when named as the lender n the mdified mrtgage lan dcuments) Pre-Requisites fr License Applicatins $50,000 surety bnd $200,000 in funds available fr the peratin f business Criminal backgrund checks fr the applicant s members, senir fficers, directrs, and principals (fingerprint cards t be btained frm the Virginia Bureau f Financial Institutins) Financial respnsibility, character, reputatin, experience, and general fitness f the applicant and its members, senir fficers, directrs, and principals are such as t warrant belief that the business will be perated efficiency and fairly, in the public interest and in accrdance with law Updated: 3/3/2017 Page 1 f 10

2 License Delivery Virginia issues paper certificates fr each authrized ffice f mrtgage lender licensees, including the main ffice designated n Cmpany Frm MU1. The certificate(s) will be mailed t the attentin f the individual designated as the licensee s primary cmpany cntact in. Dcument Uplads Guidance Dcuments that must be upladed t the Dcument Uplads sectin f the Cmpany Frm (MU1) in are indicated in the checklist belw. When uplading dcuments: Fllw the guidance in Dcument Uplad Descriptins and Examples. Only uplad dcuments relevant t the cmpany applicatin. Only uplad dcuments where there is a selectable dcument categry. If inapprpriate dcuments are upladed that shuld nt be, yu will be cntacted by yur regulatr and asked t remve them frm. D nt uplad the same cmpany dcuments multiple times. Generally, unless the dcument is state-specific, if the dcument has already been upladed fr anther state, a new uplad is nt required unless changes have been made. If a dcument previusly upladed has been revised, delete the ld dcument and replace it with the new dcument (histry f the ld dcument will remain in ). Fr state-specific dcuments (e.g., Surety Bnds), be sure t indicate the applicable state. Helpful Resurces Cmpany Frm (MU1) Filing Instructins Dcument Uplad Descriptins and Examples Individual Frm (MU2) Filing Quick Guide Financial Statements Quick Guide Payment Optins Quick Guide License Status Definitins Quick Guide Agency Cntact Infrmatin Cntact the Virginia Bureau f Financial Institutins Administratin and Licensing Sectin staff by phne at (804) r send yur questins via t mrtgagelicensing@scc.virginia.gv. Fr U.S. Pstal Service: Bureau f Financial Institutins Administratin and Licensing Sectin PO Bx 640 Richmnd, VA Fr Overnight Delivery: Bureau f Financial Institutins Administratin and Licensing Sectin 1300 E. Main Street, Suite 800 Richmnd, VA THE APPLICANT/LICENSEE IS FULLY RESPONSIBLE FOR ALL OF THE REQUIREMENTS OF THE LICENSE FOR WHICH THEY ARE APPLYING. THE AGENCY SPECIFIC REQUIREMENTS CONTAINED HEREIN ARE FOR GUIDANCE ONLY TO FACILITATE APPLICATION THROUGH. SHOULD YOU HAVE QUESTIONS, PLEASE CONSULT LEGAL COUNSEL. Updated: 3/3/2017 Page 2 f 10

3 ID Number Applicant Legal Name LICENSE FEES - Fees cllected thrugh are NOT REFUNDABLE OR TRANSFERABLE. Cmplete VA Mrtgage Lender License Submitted via VA Applicatin Fee: $500 Initial Prcessing Fee: $100 (Filing submissin) Credit Reprt fr Cntrl Persns: $15 per cntrl persn. (Filing submissin) State Criminal Histry Check: $25 per individual. Please see instructins belw. Mail t Virginia Updated: 3/3/2017 Page 3 f 10

4 REQUIREMENTS COMPLETED IN Cmplete VA Mrtgage Lender License Submitted via Nte Submissin f Cmpany Frm (MU1): Cmplete and submit the Cmpany Frm (MU1) in. This frm serves as the applicatin fr the license/registratin thrugh. Financial Statements: All applicants (except fr sle prprietrs) must uplad a current (less than 90 days ld) financial statement fr the applicant that has been prepared in accrdance with Generally Accepted Accunting Principles. Financial statements shuld include a balance sheet, incme statement and all relevant ntes theret. If applicant is a start-up cmpany, nly a beginning balance sheet and a pr frma balance sheet and incme statement fr the first year f peratin need t be prvided. Nte: Financial statements are upladed separately under the Filing tab and Financial Statement submenu link. See the Financial Statements Quick Guide fr instructins. Other Trade Name: If perating under a name that is different frm the applicant s legal name, that name ( Trade Name, Assumed Name r DBA ) must be listed under the Other Trade Names sectin f the Cmpany Frm (MU1). The Virginia Bureau f Financial Institutins des nt limit the number f ther trade names. Frced Trade Name: If the Virginia State Crpratin Cmmissin has ntified the applicant that it cannt use its legal name in Virginia because the name is already registered by anther cmpany, the applicant must adpt an alternate name fr use in Virginia. In this situatin, the applicant must use their legal name n the Cmpany Frm Identifying Infrmatin sectin and recrd the alternate name in the Cmpany Frm Other Business Names sectin, with the indicatin that it is Frced. Resident/Registered Agent: The applicant s Registered Agent must be listed under the Resident/Registered Agent sectin f the Cmpany Frm (MU1) and must match the infrmatin currently n recrd with the Virginia State Crpratin Cmmissin. Primary Cntact Emplyees: The fllwing individuals must be entered int the Cntact Emplyees sectin f the Cmpany Frm (MU1). 1. Primary Cmpany Cntact 2. Primary Cnsumer Cmplaint Cntact Nn-Primary Cntact Emplyees: Virginia des nt require any nn-primary cntacts t be listed in the Cntact Emplyees sectin f the Cmpany Frm (MU1). N/A Updated: 3/3/2017 Page 4 f 10

5 Cmplete VA Mrtgage Lender License Submitted via Nte Nte Nte Bank Accunt: Bank accunt infrmatin is nt required. The Bank Accunt sectin f the Cmpany Frm (MU1) can be left blank. Disclsure Questins: Prvide a cmplete and detailed explanatin and dcument uplad fr each Yes respnse t Disclsure Questins made by the cmpany r related cntrl persns (MU2). See the Cmpany Disclsure Explanatins Quick Guide fr instructins. Qualifying Individual: The Qualifying Individual sectin is nt required t be cmpleted fr VA n the Cmpany Frm (MU1). Cntrl Persn (MU2) Attestatin: Cmplete the Individual Frm (MU2) in. This frm must be attested t by the applicable cntrl persn befre it is able t be submitted alng with the Cmpany Frm (MU1). Credit Reprt: Individuals in a psitin f cntrl are required t authrize a credit reprt thrugh. Individuals will be required t cmplete an Identity Verificatin Prcess (IDV) alng with an individual attestatin befre a license request fr yur cmpany can be filed thrugh. This authrizatin is made when the Individual Frm (MU2) is submitted as part f the Cmpany Frm (MU1). MU2 Individual FBI Criminal Backgrund Check Nt Required Thrugh : Direct Owners/Executive Officers, Indirect Owners, and Qualifying Individuals are NOT required t authrize a FBI criminal backgrund check (CBC) thrugh. Nte: See the Requirements Cmpleted Outside f sectin fr CBC requirements. N/A Uplad in in the Disclsure Explanatins sectin f the Cmpany Frm (MU1) r Individual Frm (MU2). N/A N/A Updated: 3/3/2017 Page 5 f 10

6 REQUIREMENTS/DOCUMENTS UPLOADED IN Cmplete VA Mrtgage Lender License Submitted via Business Plan: Uplad a business plan utlining the fllwing infrmatin: The number f ffices and emplyees the applicant currently has, and the prjected grwth in the applicant s number f ffices and emplyees ver the next three years, bth in Virginia and in ther states Whether the applicant is ultimately respnsible fr the payment f all f the perating expenses f its ffices (i.e. emplyee cmpensatin, rent, utilities, furniture, equipment, advertising, etc.), and if all f these perating expenses are reprted n the applicant s financial and accunting recrds A statement detailing hw the applicant currently cmpensates its lan fficers and prcessrs, and hw it plans t d s in Virginia, if different A detailed descriptin f management s versight f its lan fficers, lan prcessrs, and ther emplyees A descriptin f the methds by which Virginia lans will be slicited, including the prcess used by the applicant t ensure that all f its advertisements cmply with applicable state and federal laws If the applicant utilizes the services f a marketing cmpany, prvide details f the relatinship and a cpy f the marketing agreement Attach a sample cpy f its branch manager/lan fficer emplyment agreements, if applicable This dcument shuld be named [Cmpany Legal Name] Business Plan. Nte: If the existing upladed business plan already includes the abve infrmatin, an additinal dcument des nt need t be upladed. A cmpany shuld nly uplad a single business plan. If state-specific material is required, this infrmatin shuld be added t the existing upladed business plan. Certificate f Authrity/Gd Standing Certificate: Uplad evidence f registratin with the Clerk f the Virginia State Crpratin Cmmissin, if a crpratin, limited liability cmpany, limited partnership, r business trust applicant. This dcument shuld be named VA Certificate f Authrity r VA Certificate f Gd Standing. Uplad in : under the Dcument Type Business Plan in the Dcument Uplads sectin f the Cmpany Frm (MU1). Uplad in : under the Dcument Type Certificate f Authrity/Gd Standing Certificate in the Dcument Uplads sectin f the Cmpany Frm (MU1). Updated: 3/3/2017 Page 6 f 10

7 Cmplete VA Mrtgage Lender License Submitted via Other Trade Name: An applicant that is a crpratin, limited liability cmpany r limited partnership (regardless f where dmiciled) must file an assumed name certificate, fr each trade name t be used in Virginia, in the ffice f the clerk f the circuit curt lcated in the Virginia cunty r city where the business is t be cnducted. A cpy f the attested assumed name certificate(s) must then be filed with the Clerk s Office f the Virginia State Crpratin. Sle prprietr applicants that are lcated in Virginia must file an assumed name certificate in the ffice f the clerk f the circuit curt lcated in the Virginia cunty r city where the business is t be cnducted. Sle prprietr applicants that are lcated utside f Virginia must register the trade name(s) in accrdance with the laws f the state where the business is lcated. Fr each trade name t be used in Virginia, uplad evidence that the trade name has been prperly registered as nted abve. This dcument shuld be named Virginia Mrtgage Brker License Assumed Name. Management Chart: Submit a management chart displaying the applicant s directrs, fficers, and managers. The chart shuld include, at a minimum, all departmental heads r managers in charge f cmpliance, underwriting, marketing, peratins and finance. Fr each psitin, prvide the individual s name, title and a brief descriptin f their jb duties and respnsibilities. This dcument shuld be named [Cmpany Legal Name] Management Chart. Nte: If the existing upladed management chart already includes the abve infrmatin, an additinal dcument des nt need t be upladed. A cmpany shuld nly uplad a single management chart. Uplad in : under the Dcument Type Trade Name/Assumed Name Registratin Certificates in the Dcument Uplads sectin f the Cmpany Frm (MU1). Uplad in : under Management Chart in the Dcument Uplads sectin f the Cmpany Frm (MU1). Organizatinal Chart/Descriptin: Submit a chart illustrating the applicant s wnership structure. Include all individuals and entities that directly r indirectly wn r cntrl ten percent r mre f the applicant. This dcument shuld be named [Cmpany Legal Name] Organizatinal Chart Descriptin. Nte: If the existing upladed Organizatinal Chart/Descriptin already includes the abve infrmatin, an additinal dcument des nt need t be upladed. A cmpany shuld nly uplad a single wnership rganizatinal chart. Uplad in : under Organizatinal Chart/Descriptin in the Dcument Uplads sectin f the Cmpany Frm (MU1). Updated: 3/3/2017 Page 7 f 10

8 Cmplete VA Mrtgage Lender License Submitted via Frmatin Dcuments: Determine classificatin f applicant s legal status and submit a State certified cpy f the requested applicable dcumentatin detailed belw. Sle Prprietr N/A fr Virginia Unincrprated Assciatin: By-Laws r cnstitutin (including all amendments). General Partnership: Partnership Agreement (including all amendments). Limited Liability Partnership: Certificate f Limited Liability Partnership; and Partnership Agreement (including all amendments). Limited Partnership: Certificate f Limited Partnership; and Partnership Agreement (including all amendments). Limited Liability Limited Partnership: Certificate f Limited Liability Limited Partnership; and Partnership Agreement (including all amendments). Limited Liability Cmpany ( LLC ): Articles f Organizatin (including all amendments); Operating Agreement (including all amendments); IRS Frm 2553 r IRS Frm 8832 if S-crp treatment elected; and LLC reslutin if authrity nt in perating agreement. Crpratin: Articles f Incrpratin (including all amendments); By-laws (including all amendments), if applicable; Sharehlder Agreement (including all amendments), if applicable; IRS Frm 2553 if S-crp treatment elected; and Crprate reslutin if authrity t cmplete applicatin nt in By- Laws r Sharehlder Agreement, as amended, as applicable. Nt fr Prfit Crpratin: N/A fr Virginia fr mre infrmatin, see related checklist fr Determinatin f a Bna Fide Nn-Prfit Status. Trust (Statutry): Certificate f Trust; and Gverning instrument (all amendments). Surety Bnd: Uplad a cpy f the applicant s prperly executed surety bnd cmpleted n frm (CCB-8813) and the assciated pwer f attrney frm. This requirement is nt applicable if the applicant is already licensed as a mrtgage brker in Virginia. Uplad in : under Frmatin Dcument in the Dcument Uplads sectin f the Cmpany Frm (MU1). This dcument shuld be named Frmatin Dcumentatin [Date f Creatin (MM-DD- YYYY)]. Uplad in : under Surety Bnd in the Dcument Uplads sectin f the Cmpany Frm (MU1). Nte: This item must als be mailed t the agency. Updated: 3/3/2017 Page 8 f 10

9 ID Number Applicant Legal Name REQUIREMENTS SUBMITTED OUTSIDE OF Cmplete VA Mrtgage Lender License Submitted via Surety Bnd: Submit a prperly executed $50,000 surety bnd cmpleted n frm (CCB-8813) and the assciated pwer f attrney frm. The bnd must be issued by a Virginia licensed prperty & casualty insurer in the exact legal name f the applicant (as registered with the Clerk f the State Crpratin Cmmissin), including any trade names. If the applicant is already licensed in Virginia as a mrtgage brker with a $25,000 bnd, then it must submit an riginal rider, with the pwer f attrney attached, increasing its bnd t $50,000. Criminal Histry Recrds Check: Submit a cmpleted fingerprint card and a Criminal Histry Recrds Cnsent and Fingerprinting Instructins frm (CCB- 8812) fr: any sle prprietr applicant each directr f a crprate applicant each member f a limited liability cmpany r partnership applicant each senir fficer f the applicant (any persn wh has significant management respnsibility within the rganizatin r therwise has the authrity t influence r cntrl the cnduct f the applicant's affairs, including but nt limited t its cmpliance with applicable laws and regulatins) each natural persn principal f the applicant (10% r greater wnership interest in the applicant, direct r indirect) Fingerprint cards shuld be btained ONLY frm the Bureau f Financial Institutins prir t applying fr a license. Please yur request fr fingerprint cards r questins abut criminal histry recrds checks t crpratestructure@scc.virginia.gv r call (804) Persnal Financial Statements: Each individual required t submit a fingerprint card is als required t submit a prperly executed, current (less than 90 days ld) Persnal Financial Statement n frm (CCB-1123). An utside directr (a persn wh is nt a paid emplyee f the applicant r its parent and wh des nt wn 10 percent r mre f the stck f the applicant and its parent) may elect t use the Limited Persnal Financial Reprt frm (CCB-1143). The reprt must be executed with riginal signature(s). Persnal financial reprt frms are held cnfidential. DO NOT UPLOAD PERSONAL FINANCIAL STATEMENTS IN.) Mail t Virginia Mail t Virginia Mail t Virginia Updated: 3/3/2017 Page 9 f 10

10 Cmplete VA Mrtgage Lender License Submitted via Principal Financial Statements: Any entity (nn-natural persn) that wns r cntrls ten percent r mre f the applicant must submit a current (less than 90 days ld) balance sheet and incme statement (audited, if available). Business References: Submit a list f at least three business references (preferably frm within the mrtgage industry) wh can attest t the character, reputatin, experience, financial respnsibility, and general fitness f the applicant and each f its members, senir fficers, directrs, and principals. Fr each reference prvide: cntact persn s name and title mailing address phne number address Bank Reference: Submit a cmpleted Depsitry Institutin Authrizatin frm (CCB-1149) fr a reference frm a bank r depsitry institutin with which the applicant r its members, senir fficers, directrs and principals have had a depsit accunt fr at least ne year. Frm CCB-1149 and bank references are held cnfidential. Funds Available: Submit evidence that the applicant has at least $200,000 available fr the peratin f business. Acceptable evidence is cash n depsit, an established line f credit with a depsitry institutin, r sme cmbinatin f bth. If cash, submit a letter frm the depsitry institutin verifying the accunt balance, the type f accunt in which the funds are held, and that the funds are nt encumbered r hypthecated in any way. If a line f credit, submit a cpy f the line f credit agreement and prmissry nte. Neither letters f credit nr lines f credit frm surces ther than a bank r ther depsitry institutin will satisfy this requirement. Mail t Virginia Mail t Virginia Mail t Virginia Mail t Virginia Updated: 3/3/2017 Page 10 f 10