NH MLO key terms

The state agency that licenses and supervises mortgage bankers, brokers, and loan originators, examines licensed entities for compliance, and enforces the state's mortgage statutes and rules.

The official appointed to lead the New Hampshire Banking Department, empowered to issue licenses, conduct investigations, hold hearings, impose penalties, and adopt rules implementing state mortgage law.

A New Hampshire license authorizing a person or entity to make, originate, or fund mortgage loans using its own funds, and to service loans, subject to capital, surety, and reporting requirements.

A New Hampshire license permitting an entity to negotiate or place mortgage loans between borrowers and third-party lenders for compensation without funding the loans from its own resources.

An individual license required for an employee who takes residential mortgage loan applications, offers or negotiates loan terms, or holds out to the public as able to do so.

The required relationship in which a licensed mortgage loan originator is employed by and registered under a licensed mortgage banker or broker, which must notify the Department when the originator joins or leaves.

The permanent number assigned to a mortgage loan originator through the nationwide licensing registry, retained across employers and states and used on loan documents and license records.

The online system, commonly called NMLS, through which New Hampshire receives license applications, manages records, and processes renewals, amendments, and surrender requests for mortgage entities and originators.

The coursework an applicant must complete before licensure, covering federal and state mortgage law, lending standards, and ethics, generally at least twenty hours with state-specific content included.

Annual post-licensing coursework, typically eight hours including law, ethics, and non-traditional lending topics, that a licensed originator must complete to renew a license.

The annual process by which a licensee submits fees, attestations, and education evidence through the licensing system by the required deadline to keep authority to conduct mortgage business.

A bond a licensed mortgage entity must maintain and file with the Department, payable to the state for the benefit of injured borrowers, with the required amount tied to loan volume.

The minimum tangible net worth a licensed mortgage banker or broker must demonstrate and maintain, calculated under state rules and reported on financial statements filed with the Department.

The periodic submission of audited or reviewed financial statements to the Banking Department so it can verify that a licensee meets net worth and solvency standards.

The Department's power to inspect books, records, and loan files of licensees, interview personnel, and require reports to assess compliance with mortgage statutes and rules.

The obligation to keep complete loan, transaction, and complaint records for a specified period and make them available to the Department on request, including records held by third parties.

An enforceable directive the Commissioner may issue to stop unlicensed activity or prohibited conduct, with violation exposing the recipient to civil penalties and further enforcement action.

A monetary fine the Department may impose per violation of state mortgage law or rule, assessed after notice and hearing and separate from any restitution ordered to consumers.

Money a violator is ordered to return to a borrower who suffered loss from unlawful conduct, such as unearned fees or charges tied to a prohibited practice.

Making, brokering, or originating mortgage loans, or advertising such services, without the required New Hampshire license, which is unlawful and subject to enforcement and penalties.

Prohibited conduct in mortgage transactions that misleads borrowers or takes unreasonable advantage of them, including misrepresenting terms, fees, or the likelihood of approval.

Submitting or helping to submit loan documents containing false information about income, assets, occupancy, or identity, which is prohibited and may be referred for criminal prosecution.

Intentional misstatement or omission of material facts to obtain mortgage funding or gain, whether by an industry participant or a borrower, exposing the actor to civil and criminal liability.

Rules requiring mortgage advertising to be accurate, not misleading, and to identify the licensed name, while prohibiting false claims about rates, approval odds, or government affiliation.

The ban on collecting fees for mortgage assistance or loan modification before services are actually performed, a safeguard aimed at foreclosure-rescue and loan-modification schemes.

A transaction in which a distressed homeowner is promised help avoiding foreclosure but may be induced to transfer title or pay fees, subject to state disclosure and prohibition rules.

A practice in which a person takes title to a distressed home or loads it with debt, draining the owner's equity, often as part of a foreclosure-rescue arrangement.

A residential loan meeting state rate or fee thresholds that triggers additional protections, such as limits on prepayment penalties, balloon payments, and lending without regard to repayment ability.

The requirement that a lender or broker make a reasonable determination, documented in the file, that the borrower can repay the loan based on verified income, assets, and obligations.

Documenting a borrower's income through pay stubs, tax returns, or other reliable evidence rather than relying on stated figures, supporting the ability-to-repay determination.

A charge imposed when a borrower pays a loan off early, restricted or barred for certain New Hampshire loans depending on loan type, amount, and timing.

A large lump sum due at the end of a loan whose regular payments do not fully amortize the debt, subject to disclosure and restrictions for certain residential loans.

The standardized form delivered to an applicant shortly after application showing estimated interest rate, monthly payment, closing costs, and other key loan terms.

The final standardized form a borrower receives before closing that states the actual loan terms and settlement costs, which must stay within tolerance of prior estimates.

The requirement that disclosed fees and charges be calculated and presented in good faith, with tolerances limiting how much certain costs may increase before closing.

A arrangement in which a mortgage broker closes a loan in its own name and immediately assigns it to a funding lender, a practice addressed by state licensing and disclosure rules.

A required communication telling a borrower that the right to collect payments has been sold or transferred, including the new servicer's identity and where to send payments.

An account a servicer maintains to hold borrower funds for property taxes and insurance, with limits on required deposits and rules for statements and surplus refunds.

A loan letting older homeowners convert home equity into payments or a credit line, subject to state and federal counseling, disclosure, and lending-limit requirements.

A loan secured by a subordinate lien on residential property, regulated under New Hampshire mortgage law for licensing, disclosure, and prohibited-practice purposes.