Must I be licensed in Texas as a Mortgage Broker (Commercial) if I charge a fee for arranging financing?

Instead of charging a broker fee could I call it a ';Finders Fee'; or a ';Consulting Fee';? I work for a Mortgage Banker but am contemplating starting my own shop as I have developed some relationships over the years. I am not licensed at present.Must I be licensed in Texas as a Mortgage Broker (Commercial) if I charge a fee for arranging financing?
if you discuss rates, fees, or review income documentation with a client.....you must have a licenseMust I be licensed in Texas as a Mortgage Broker (Commercial) if I charge a fee for arranging financing?
Commercial mortgage and residential mortgage are two very different things. I used to own a brokerage in NV and while residential lending required a license commercial lending does not.





Mortgage licensing is set up in order to protect the client, those dabbling in purchasing commercial properties are deemed mo0re financially savvy, and thus not in need of as much protection.





A few states- require licensing for any type of mortgage-both commercial and residential -Texas however is not one of them.





I would consult an attorney as far as how you word the fee- but there are legal ways for you to get paid- you will however probably have to establish an LLC and charge the fee through that.





You can check here for states requiring Commercial Licensing


http://www.integritymortgagelicensing.com/lists-of-licensing-requirements/commercial-loan-licensing/





and here for licensing requirements in Texas:


http://www.bankapedia.com/mortgage-encyclopedia/state-licensing/517-texas-mortgage-broker-requirements
Finders fees are consulting fees are ILLEGAL under FEDERAL lending guidelines.





So, that pretty much answers your question.





It's not worth prison.





If you don't know that, then you don't know enough to go into the business.