What is a mortgage banking license

A mortgage banking license is a specific category of license that is required by a bank or financial institution in order to offer mortgage services to its customers. Depending on the jurisdiction you seek the license from, the process for obtaining it may vary. As such, it is advised that a professional consultancy firm is enlisted to assist you with your banking license needs.

The characteristics of a mortgage banking license

Banking licenses are obtained under strict regulations, and are always issued based specifically on what services the bank will supply. A mortgage banking license is therefore a specific type of license aimed at banking institutions that wish to offer mortgages.

A mortgage is a type of loan that is issued by a bank for the sole purpose of buying property. It is a legally binding financial commitment that is only issued under the condition that you will pay it off in installments over a certain period of time. Mortgages are only issued once the bank obtains the title deeds of the house. This acts as a form of collateral so that if the mortgage is unable to be paid, the bank can repossess the house.

A mortgage banking license allows a bank to lend money to its clients, and is a necessary acquisition to allow your bank to engage in lending services. In order for a bank to carry out the issuing of mortgages, by law it must obtain a mortgage banking license, along with other banking licenses that reflect its services.

The process of acquiring a mortgage banking license will depend upon the jurisdiction in which you wish to establish your bank. Each jurisdiction follows its own laws and regulations, which will be clarified during the application procedure. It is advised to seek the assistance of a professional consultancy firm when seeking a mortgage banking license in order to obtain the license in a professional and timely manner.