How to Build Your Mortgage Business While Waiting for Your MU1 License Approval
Opening up your own mortgage brokerage shop is an exciting time, but it can be prolonged if you’re not pushing through the licensing approval process. To avoid additional delays, here are some tips on what you can do while you’re waiting for the final MU1 license approval.
How long does it take for an MU1 application to get approved?
To submit a license request, you must first create an MU1 profile, which triggers the process that will allow you to set up your company profile in the Nationwide Multistate Licensing System & Registry (NMLS). Your company will not be considered active in the NMLS until your MU1 checklist items have been approved.
Most states average 30 days from the day you submit your MU1 application to approval, but be sure to check specific turnaround times for whatever state(s) you’re getting licensed in, as they can vary depending on individual state regulations. However, no matter what the approval timeframe might be in your state(s), there are still plenty of things you can do in the meantime to build your business while waiting for that final green light.
You’ve filed your MU1 application, now what?
1. Set up your company compliance measures
Have you satisfied the minimum needs to meet compliance requirements in any states you’re planning to be licensed in? Are you ready for your Mortgage Call Report? Setting up processes to ensure your company will be compliant is key. For starters, it’s a good idea to enlist help from industry compliance resource partners, especially if it’s your first year in business, so you have a full understanding of how to remain compliant.
Most importantly, do your homework. A good compliance advisor can handle a variety of needs, from licensing to mortgage call reports. Research multiple compliance companies and choose the one that offers you the most for your budget.
2. Set up your tools and technology
You can also use this time to get your Loan Operating System (LOS) and Point of Sale System (POS) set up.
A LOS is a platform that allows you to manage all parts of the loan process from application through closing so you can be more efficient. A good LOS enables you to more easily and quickly complete parts of the process digitally and some even allow a borrower to complete a virtual application themselves. Potential LOS platforms include Lending Pad, Calyx Point, and Encompass – and some wholesale lenders even offer free access for their broker partners to proprietary LOS and other platforms, so make sure you are having conversations with lender partners early in your process as well
POS systems house digital loan applications and act as a portal for your borrowers to upload necessary documents and track the status of their loan. A POS system gives your borrower a critical lens into their loan and allows you to speed up the origination process.
3. Set up your credit report vendor
Since a tri-merged credit report will be required on all loans you will be originating, getting approved with a credit reporting company (CRC) is essential for your business. CRCs will require an on-site inspection as part of the approval process, so make sure you understand what requirements they have and what they will expect to see when they visit. Some of these requirements may include dedicated office space, locked door, shredder on-premises, locked file cabinet, etc.
The good news is you can use any credit company of your choice, so do your homework and determine which one is best for you. Examples of CRC’s your company can utilize include Funding Suite, CBC Innovis and MFI Credit Solutions.
4. Network
How are you going to run your business? How do you plan on getting your leads? Use this “downtime” as an opportunity to look into different marketing tactics. Do research on your target demographic and learn the ins and outs of housing and finance needs in your community and state. Relationship building is key, and it’s never too early to start networking with real estate agents and other industry-related partners.
In addition, check out organizations such as the Association of Independent Mortgage Experts (AIME), and join the variety of broker groups on social media such as the Brokers Are Better Facebook page. These groups exist to support mortgage brokers – they can connect you with wholesale lender partners, industry-leading vendors, and other independent mortgage professionals across the country.
Are you ready to jump-start your career in the mortgage industry? Our team at BeAMortgageBroker.com is here to help you every step of the way.