Department of Insurance, Securities and Banking: Mortgage Lender and Broker Licensing Exemption Repealed

TO: All Persons Making or Brokering Mortgage Loans in the District of Columbia

RE: Mortgage Lender and Broker Licensing Exemption Repealed

This bulletin applies to all persons making or brokering (or intending to make or broker) a residential mortgage loan in the District of Columbia ("District"). The purpose of the bulletin is to inform such persons that District law requires a person who makes or brokers a single residential mortgage loan in the District to be licensed by the Department of Insurance, Securities and Banking ("Department") as a mortgage lender or broker. See Mortgage Lender and Broker Act of 1996, effective September 9, 1996 (D.C. Law 11-155; D.C. Official Code § 26-1101 et seq.). There is no longer an exemption from licensing for persons who make or broker three or fewer loans. That exemption was repealed by the Home Loan Protection Act of 2002, effective May 7, 2002 (D.C. Law 14-132). Therefore, a person must be licensed by the Department prior to making or brokering any residential mortgage loan in the District.

Should you have any questions regarding this matter, please send an e-mail to BankingBureau@dc.gov.