Loan Officers can be sponsored by Loan Factory in 48 states (except Connecticut and New York)



Loan Officers (even brokers) can be licensed in multiple states and be sponsored by different mortgage companies.

  1. General Rule: In each state, a Loan Officer can be sponsored by only one mortgage company.
  2. Exceptions: In CO, DE, ME, MN, TX, and WA, Loan Officer can be have multiple sponsors.
  3. Special States: In GA, MT, OH, OR and PA, a Loan Officer can only have one sponsor and cannot be sponsored in other states.

Adding New State Licenses

If you are CURRENTLY licensed and want to obtain license in more states, you DO NOT need to pass the exam again

Step 1

Pick an interested state

Select the state you want to obtain a license. You will see the number of hours of a state-specific course that you must take in order to obtain a license. In general, you do not need to pass the exam again
The following states do not currently require additional hours:











North Dakota






South Dakota


Step 2

Register and complete the state-specific course at

Make sure to click on this button (see below) and select the state. Each hour will cost $15. Therefore, if you need to take a 3-hour course, it will cost you $30

Step 3

Apply for the state license on NMLS

Step 4

Request sponsorship

See below for the steps to request NMLS Sponsorship from Loan Factory

Request NMLS Sponsorship From Loan Factory

These are steps to sign up with Loan Factory

Step 1

Step 2

Remove your relationship with your current employer, put an end date to your prior employment and submit a new MU4 to add Loan Factory as your employer.

Step 3

Request NMLS Sponsorship from Loan Factory (NMLS #: 320841). Loan Factory will be notified and proceed to sponsor you.

Step 4

Resolve any Active License Items that the state will ask you. (You must log in and check NMLS regularly and clear the requests from the state. Once complete, it will take the regulator around 5-7 days to approve.)

Supervisory Distance Requirements

There are a few states require supervisory distance between MLO's residence and current sponsoring office location (our office):

  • Mississippi: 125 miles
  • South Carolina: 75 miles
  • Wisconsin: 100 miles
  • West Virginia: 75 miles
  • Wyoming: 100 miles
  • Nebraska: The Department does have a commutable distance requirement in place. While there is no specific mileage figure, the Department requires that all commutable distances be reasonable in nature. Where a commute distance could lead to potential issues, the mortgage banker and/or MLO should be prepared to answer any questions or provide explanations or clarification regarding the commute to and from the associated licensed location.
  • New Jersey: The Department considers a reasonable commuting distance to be 2.5 hours of the assigned location
  • Rhode Island: The remote location is the employee’s residence or other location identified in the records of the licensee and is within a reasonable distance of a place of business named in the licensee’s license or branch certificate, as established by regulations adopted by the director or the director’s designee.

Compensation Types

  • A loan officer must be classified as either W-2 or 1099 (cannot be both).
  • In these 13 states, the Loan Officer must be classified as W-2 Loan Officer:  GA (Georgia), IL (Illinois), ME (Maine) , MA (Massachusetts), MD (Maryland), MS (Mississippi), MT(Montana), NV (Nevada), NJ (New Jersey), NC (North Carolina), SC (South Carolina), RI (Rhode Island), and VT (Vermont).

1099 Compensation
A Loan Officer will receive 100% of the commission from every deal they close. Loan Factory will charge a flat fee of $595 for each deal, in addition to a processing fee of $500.

W2 Compensation

A Loan Officer will receive 90% of the commission from every deal they close, but first, they need to pay a flat fee of $595 and a processing fee of $500.

Remember, loan officers must also pay any payroll taxes themselves.

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