Qualifying Individuals - Branches -Branch Managers
1. Q: What is a "Qualifying Individual?"A: A Qualifying Individual is an individual designated by the licensed mortgage Lender, Servicer or Broker as the person who has primary responsibility for the operations of the licensed company. Although the Qualifying Individual is the person that NCCOB will contact in the event of a consumer complaint or other problem, he/she is not required to be physically located in North Carolina nor in every case must he/she hold a Mortgage Loan Originator license. This individual must have at least three years of experience in the mortgage lending business and will be expected to have at least as much knowledge regarding the lending operations as any licensed Mortgage Loan Originator. The Qualifying Individual, if licensed as a Mortgage Loan Originator, may also serve as the Branch Manager for no more that one Branch Officer of a license Mortgage Lender or Broker.
2. Q: Must a Qualifying Individual have a Mortgage Loan Originator license?A: A Qualifying Individual will need a Mortgage Loan Originator license if he/she has customer contact. Also, a Qualifying Individual who manages a branch will have to be licensed as a Mortgage Loan Originator.
3. Q: Must I have a physical office in North Carolina?A: A licensed Mortgage Lender is not required to have a principal office in North Carolina nor does its Qualifying Individual have to be physically located in the State. The Act does require a Mortgage Broker to maintain a "principal place of business" within North Carolina which cannot be located at an individual’s home or residence.
5. Q: What are the requirements for being a Branch Manager?A: Under NC SAFE, each Branch Office must have a person designated as "Branch Manager." The Qualifying Individual 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 Mortgage Loan Originator License and at least three years of experience in the mortgage lending business. Upon designation as Branch Manager by the Qualifying Individual, the Branch Manager will have primary responsibility for the operations and employees of that Branch Office.
6. Q: May a licensed Mortgage Loan Originator operate a "net branch" for a licensed mortgage company?A: No. If an individual solicits loans secured by residential real estate in North Carolina, that person must be a licensed Mortgage Loan Originator who is a W-2 employee of a licensed Mortgage Lender or Mortgage Broker. That person must work from a licensed branch of that Mortgage Lender or Mortgage Broker. Each such Branch must have a Branch Manager who has at least three years of experience in the mortgage lending business. 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 Licensing Act's requirements as interpreted in that Ruling. The text of the Ruling is available online at http://www.nccob.org/
Rev. 2/15/2010