When a company or person wants to get a license to work in the mortgage business, they have to fill out a number of forms through the Nationwide Multistate Licensing System & Registry (NMLS). These forms are called MU1, MU2, MU3, and MU4. Each form has a different purpose, and it’s important to know which one to use. Let’s break it down!
MU1 – Company Form
The MU1 form is used by mortgage companies to apply for a mortgage license. The specific licenses available will vary from state to state, but typically include: Mortgage Broker License, Mortgage Lender License and a Mortgage Servicer License.
Here’s what you need to know about filling out an MU1:
Use Cases
- When a new mortgage company wants to get a license.
- When an existing company needs to update their information, like changing their name or address.
- When the company renews its license each year.
Required Documentation
- Company’s legal name and address
- Business structure (e.g., corporation, LLC)
- Details about business activities
- Information about branch offices, if any
Associated Fees
There are usually fees for submitting the MU1 form. The amount can vary depending on the state and the specific license being applied for.
Submission Process Overview
- Initial Submission: Submit the MU1 form once through the NMLS as part of the company’s initial application.
- State-Specific Submissions: Additional information and fees must be submitted for each state where the company seeks licensure. Each state may have specific requirements.
MU2 – Individual Form
The MU2 form is for individuals crucial to the company’s operations, often referred to as “key persons.” These individuals include owners, executive officers, directors, and others who have significant responsibility for the company’s operations. Here’s what you need to know:
Use Cases
MU2 forms are required in conjunction with an MU1 submission.
- When a company is applying for a mortgage license, each key person must fill out this form as part of the overall submission process.
- When there are changes to the key person’s information, like a new address or job history.
- When a new key person joins the company, or when an existing key person leaves.
Required Documentation
- Personal information (name, address, etc.)
- Employment history
- Background information (criminal history, if any)
- Financial information
Associated Fees
There are usually no direct fees for submitting the MU2 form, but fees might apply as part of the overall licensing process.
Submission Process Overview
- Initial Submission: Submit the MU2 form once for each key person through the NMLS as part of the company’s application.
- State-Specific Submissions: While the MU2 form itself is submitted once, each state may have additional requirements or background checks for key persons that need to be completed.
MU3 – Branch Form
The MU3 form is used to get licenses for branch offices of the mortgage company. Here’s what you need to know:
Use Cases
- When a company opens a new branch office that will do mortgage business.
- When there are changes to a branch office’s information, like moving to a new location.
- When renewing the branch office’s license each year.
Required Documentation
- Branch office location
- Name of the branch manager
- Types of mortgage activities conducted at the branch
Associated Fees
There are usually fees for submitting the MU3 form. The amount can vary depending on the state and the specific branch being licensed.
Submission Process Overview
- Initial Submission: Submit the MU3 form once for each branch office through the NMLS.
- State-Specific Submissions: Additional information and fees must be submitted for each state where the branch seeks licensure. Each state may have specific requirements for branch offices.
MU4 – Individual Licensing Form
The MU4 form is for individual mortgage loan originators (MLOs). These are the people who help you get a mortgage. Here’s what you need to know:
Required Documentation
- Personal information (name, address, etc.)
- Employment history
- Background information (criminal history, if any)
- Financial information
MU4 Use Cases
- When an MLO applies for their own license.
- When an MLO needs to update their information, like changing their address or job.
- When renewing the MLO’s license each year.
- When an MLO changes the company they work for.
Associated Fees
There are usually fees for submitting the MU4 form. The amount can vary depending on the state and the specific license being applied for.
Submission Process Overview
- Initial Submission: Submit the MU4 form once through the NMLS.
- State-Specific Submissions: Additional information, state-specific requirements, and fees must be submitted for each state where the MLO seeks licensure.
Work with Morty
Morty works with mortgage companies from solo entrepreneurs to booming brokerages. We’re experts in mortgage compliance and would love to work with you to help establish your own cloud mortgage brokerage. Just need help with licensing? Contact sales and we’d be happy to talk through solutions with you!
