Community/Licensing requirements for private money brokers — state-by-state confusion
T
Thomas Blackwellbroker
Aug 15, 2025 at 8:00 AM
Licensing requirements for private money brokers — state-by-state confusion
This is something I've been researching for months and I'm still confused. Licensing requirements for private money brokers vary wildly by state. Some states require a mortgage broker license for commercial bridge loans, others don't. Some have specific private money exemptions.
I'm currently licensed in FL, TX, and GA. Looking to expand to CO, AZ, and NC. Anyone have experience with these states specifically? And does anyone have a good resource for tracking state licensing requirements?
4 replies
342 views
9 months ago
Sign in to join the conversation and post a reply.
5 Replies
P
Priya NairbrokerAug 15, 2025 at 11:00 AM
Thomas, this is one of the most important compliance issues and you're right that it's confusing. A few resources:
1. NMLS (Nationwide Multistate Licensing System) — has state-by-state requirements for residential mortgage brokers
2. AAPL (American Association of Private Lenders) — has resources specifically for private lending
3. A good real estate attorney in each target state — this is the most reliable approach
For CO: they have a mortgage broker license requirement that applies to most bridge loans. AZ: similar. NC: there's a private lender exemption for commercial deals but it has conditions.
I'd strongly recommend getting a 1-hour consult with a real estate attorney in each state before operating there.
B
Brian PatelbrokerAug 15, 2025 at 1:00 PM
Attorney consult for each state. Not optional.
J
Jake MorrisonbrokerAug 15, 2025 at 3:00 PM
I'm new and this is terrifying. How much does it typically cost to get licensed in a new state?
T
Thomas BlackwellbrokerAug 15, 2025 at 5:00 PM
@Jake — varies widely. Some states are $500-1000 in fees plus education requirements. Others are $5,000+ with ongoing CE requirements. The attorney consult to understand requirements is usually $300-500 and worth every penny before you invest in the licensing process.
L
Leon WattsbrokerAug 15, 2025 at 7:00 PM
The compliance landscape has gotten stricter every year I've been in this business. What was fine 10 years ago might not be fine today. Stay current or get an attorney who does.