Q:  I wish to be a Branch Manager of a licensed mortgage company. I have been in the mortgage business for less than three years. Can I be a Branch Manager?

A: No, not without exception. The Act requires all Branch Managers to have at least three years of experience in residential mortgage lending.

Q:  I wish to operate a "net branch" for a licensed mortgage company. Can I do this under the Act?

A: If you solicit loans secured by residential real estate in North Carolina, you will need a Loan Officer license and at least three years of experience in the mortgage lending business in order to be designated to manage a Branch Office. You must either be a Loan Officer employee of the licensee or you must obtain a sole proprietor Mortgage Lender or Broker license.

You and your employer should review the Commissioner of Banks' Declaratory Ruling 2003-1 regarding "net branching" to be certain the arrangement you have with the lender or broker licensee satisfies the Mortgage Lending Act's requirements as interpreted in that Ruling. The text of the Ruling is available online.

Q:  What are the requirements for being a Branch Manager?

A: Under the Act, each Branch Office must have a person designated as "Branch Manager." The Managing Principal of a licensed Mortgage Broker or Lender must designate an individual to be a Branch Manager for each authorized Branch Office. This individual must have a Loan Officer License and at least three years of experience in the mortgage lending business. Upon designation as Branch Manager by the Managing Principal, the Branch Manager will have primary responsibility for the operations and employees of that Branch Office.

Q:  Must a Managing Principal or Branch Manager have a Loan Officer license?

A: A Managing Principal will need a Loan Officer license if he/she has customer contact. A Branch Manager who effectively manages his/her branch will of necessity have at least some periodic communications with consumers and therefore must be licensed as a Loan Officer.  Additionally, a Managing Principal who anticipates managing a branch will have to be licensed as a Loan Officer.

Q:  How long is a license valid?

A: A license is valid from date of issue through the next December 31st. License fees will not be prorated for licenses issued or renewed after January 1st.

Q:  My company operates several offices. Which of these must be licensed as branches?

A: Any location (other than the designated principal office and whether or not in North Carolina) operated by the licensee which is open to the public and through which the licensee makes or brokers loans in North Carolina must be licensed as a branch and must have a branch manager.