ND MLO key terms

Under North Dakota law, a person or entity that, for compensation, arranges or negotiates mortgage loans between borrowers and lenders but does not fund the loans from its own funds.

Under North Dakota law, a person or entity that lends its own money and takes mortgages on real property as security, typically required to hold a state license unless an exemption applies.

The state agency that licenses and supervises mortgage brokers, money lenders, and mortgage loan originators in North Dakota, including examinations, investigations, and enforcement of the state mortgage statutes.

The Nationwide Multistate Licensing System, the online system used to submit license applications, renewals, disclosures, and records for North Dakota mortgage licenses and for the MLO registry.

The individual license issued through NMLS that authorizes a person to take residential mortgage loan applications, offer or negotiate loan terms, or represent to the public that they can do so in North Dakota.

The permanent number assigned to an individual mortgage loan originator through NMLS, which must be shown on certain loan documents and used to track the originator's licensing and employment history.

The required relationship in NMLS in which a licensed mortgage broker or lender employs or associates with an individual MLO and is accountable for that originator's mortgage activity.

An individual who directly or indirectly directs the management or policies of a licensed mortgage entity, such as an owner, officer, director, or managing partner, and who must be disclosed and reviewed in the licensing process.

The required classroom or approved online coursework an individual must complete before obtaining an initial mortgage loan originator license, covering federal and North Dakota-specific mortgage law and lending practice.

The annual education requirement for licensed mortgage loan originators, including federal and state law topics, ethics, and non-traditional mortgage lending, completed through approved providers and reported to NMLS.

The North Dakota-specific component of the MLO licensing exam that tests state mortgage statutes and rules, separate from the federal SAFE Act test component.

The annual process by which a North Dakota mortgage licensee submits renewal information, fees, and proof of completed continuing education through NMLS to keep the license active for the next year.

A bond required of licensed mortgage brokers and lenders in an amount set by North Dakota law, payable to the state to cover certain losses caused by violations of the mortgage statutes.

A minimum amount of tangible net worth that a licensed mortgage broker or lender must maintain under North Dakota law, calculated and reported in the manner required by the Department of Financial Institutions.

A statement of a licensee's assets, liabilities, and net worth that must be submitted to the Department of Financial Institutions, often audited or certified, to demonstrate compliance with state financial requirements.

A person or institution, such as certain banks, credit unions, or government agencies, that is excluded from some or all North Dakota mortgage licensing requirements because another regulator or statute covers its activity.

A transaction or event that results in a new person obtaining direct or indirect control of a licensed mortgage entity, which must be reported to or approved by the Department of Financial Institutions.

An enforcement action issued by the Department of Financial Institutions ordering a person to stop engaging in unlicensed or unlawful mortgage activity, which may be accompanied by fines or other remedies.

Engaging in mortgage brokering, lending, or originating without the required North Dakota license, which can lead to cease and desist orders, civil penalties, and repayment of compensation.

A monetary fine imposed by the Department of Financial Institutions on a licensee or unlicensed person for violating North Dakota mortgage statutes or rules, separate from criminal or civil liability.

A formal proceeding before the Department of Financial Institutions or its designee in which a person may contest a proposed license denial, suspension, revocation, or penalty under North Dakota law.

The permanent or long-term withdrawal of a North Dakota mortgage license by the Department of Financial Institutions for serious or repeated violations, after notice and an opportunity for a hearing.

A temporary bar on a licensee's mortgage activity ordered by the Department of Financial Institutions, often pending investigation or hearing, and distinct from permanent revocation.

The requirement that North Dakota mortgage licensees keep specified loan, financial, and transaction records for a set period and make them available for examination by the Department of Financial Institutions.

A periodic review by the Department of Financial Institutions of a licensee's books, records, and mortgage practices to assess compliance with North Dakota mortgage statutes and rules.

The criminal history and financial responsibility review completed through NMLS fingerprinting and credit reporting that an applicant must pass for a North Dakota mortgage license.

A loan secured by a mortgage or deed of trust on a dwelling, including a one-to-four-family home, that is primarily for personal, family, or household use and is covered by state mortgage law.

The chapter of North Dakota law governing money brokers and money lenders, setting licensing, bonding, recordkeeping, and enforcement requirements that apply to non-exempt mortgage businesses.

The chapter of North Dakota law regulating mortgage loan originators, adopting SAFE Act licensing standards and adding state-specific requirements for originator licensure and conduct.

A disclosure of estimated loan settlement charges that certain North Dakota mortgage brokers must provide to applicants, reflecting the terms and costs the borrower can expect to pay.

The North Dakota rules requiring licensees to give borrowers specified written information about loan terms, fees, and broker relationships at defined times in the transaction.

Receiving compensation from both the borrower and the lender on the same mortgage loan, which North Dakota law restricts or requires to be disclosed and agreed to in writing.

A fee collected from a borrower before any mortgage services are performed, which North Dakota law limits or prohibits for certain mortgage brokers and loan originators.

A segregated account in which a North Dakota mortgage broker or lender holds borrower funds, such as escrow or advance fees, separate from the licensee's own operating money.

A separate license required for each additional North Dakota location from which a licensed mortgage broker or lender conducts mortgage business, obtained through NMLS.

North Dakota requirements that mortgage licensees' advertisements, including rates and terms, be accurate, not misleading, and include required identifying information about the licensee.

Specific conduct banned by North Dakota mortgage law, such as fraud, misrepresentation, unlicensed activity, and improper handling of borrower funds, which can lead to discipline.

The duty of a North Dakota licensee to promptly report certain changes, such as address, name, employment, or control, to the Department of Financial Institutions through NMLS.