Who must be licensed under Alabamas Mortgage Brokers Licensing Act?
A mortgage broker is defined as any person who directly or indirectly solicits, processes, places or negotiates mortgage loans for a residential borrower concerning real property located in Alabama. Brokers that table-fund loans must apply for a Brokers license, while brokers who fund their own loans with warehouse-lines of credit should apply for an Alabama Consumer Credit Act license. The Mortgage Brokers Licensing Act does not apply to commercial property transactions. Banks, Alabama Consumer Credit Act licensees and approved mortgagees under the provisions of the National Housing Act are exempt. Applicants must have 12 hours of continuing education from an approved provider before the Department will issue a license. Mortgage broker fees are limited to the same 5% points restriction found in the Alabama Consumer Credit Act for mortgage loans. Brokers must disclose their fees to their borrowers upfront, but cannot collect their fee upfront. The Mortgage Brokers Licensing Act is codi