Nontraditional Mortgage Product Risks

In January, 2007, the Nebraska Department of Banking and Finance adopted a set of regulatory guidelines covering the marketing of nontraditional mortgages by state-licensed entities. These guidelines promote consistent regulation in the mortgage market and clarify how residential mortgage providers can offer nontraditional mortgage products in a way that clearly discloses the risks borrowers may assume. For a copy of the guidelines  Click here.

Illustrations of Consumer information on Nontraditional Mortgage Products

In June, 2007, the Federal Financial Agencies published final Illustrations of Consumer Information for Nontraditional Mortgage Products. The Illustrations are intended to assist institutions in implementing the consumer protection portion of the Interagency Guidance on Nontraditional Mortgage Product Risks adopted by the Department. The use of the Illustrations is voluntary for licensees, but using the Illustrations does ensure full compliance with the consumer protection provisions of the Guidance. Click here for a copy of the Illustrations.

Statement on Subprime Mortgage Lending

CSBS, AARMR and NACCA have developed a Statement on Subprime Mortgage Lending that was developed to address emerging issues and questions relating to subprime mortgage lending practices. The Statement pertains to mortgage providers not affiliated with a bank holding company or an insured financial institution and clarifies how licensees can offer subprime loans in a safe and sound manner that clearly discloses the risks that borrowers may assume. Click here for a copy of the Statement.

Certain entities and/or transactions may be exempt from registration or licensing as a mortgage banker in the State of Nebraska. The exemptions are listed in the Residential Mortgage Licensing Act. Below is a brief outline of some entities/transactions that do not require a license or registration.

This listing is merely a reference. Please see the Residential Mortgage Licensing Act, Section 45-703 for a full list of exemptions and conditions.

Entities Exempt

• Any financial institution
• Any registered bank holding company
• Any insurance company organized under the laws of Nebraska, or with a place of business in this state

Individuals Exempt

• Any person licensed to practice law in this state who is not actively and principally engaged in the business of negotiating mortgage loans when such a person renders services in the regular course of his or her practice as an attorney at law
• Any person licensed in Nebraska as a real estate broker or real estate salesperson who is not actively and principally engaged in the business of negotiating mortgage loans when such person renders services as a real estate broker or real estate salesperson

Nebraska Participates in NMLS

The Nebraska Department of Banking and Finance uses the Nationwide Mortgage Licensing System (NMLS)developed by the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators. The goal of the NMLS is to streamline and improve the licensing process for companies, branches, and individuals that hold licenses in multiple states. All mortgage lending license applications must be submitted through the NMLS.

Conducting Mortgage Transactions in Nebraska

Any person or business that, for compensation or gain or in the expectation of compensation or gain, directly or indirectly makes, originates, services, negotiates, acquires, sells, arranges for, or offers to make, originate, service, negotiate, acquire, sell, or arrange a mortgage loan must be licensed or registered with the Nebraska Department of Banking & Finance. This includes mortgage bankers and brokers.

The majority of entities wishing to conduct mortgage transactions with real property in Nebraska must obtain a mortgage banker license. Some entities, if certain requirements are met, may be allowed to register.

A Mortgage Banker License is valid from the date of issuance until December 31, at which time the license must be renewed.

Obtaining a License

All applications for a mortgage lending license must be submitted via the NMLS. Sample forms and detailed instructions are available on the NMLS website. To expedite this process you may wish to complete the paper format of each necessary form to use as a tool to ensure that you have collected all necessary information before you log into the NMLS website. However, the process will only be able to be completed online and any application or fees that are mailed or hand delivered to our Lincoln office will be returned to the applicant without being processed.

All application fees as well as any NMLS processing fees will be processed electronically through the NMLS. You may pay the fees via ACH or by Visa or Mastercard. No other payment method will be accepted.

If you have any questions or problems regarding the NMLS, please call the NMLS call center at (240) 386-4444.

View the Uniform Licensing Forms

No Paper License

The Department no longer issues paper licenses. All license approvals, renewals, branches or cancellations are updated on the NMLS to reflect the current license status.

Search for a Mortgage Banker

Required Mortgage Licensing Forms for Nebraska

A checklist of all required Nebraska mortgage licensing forms is available on the NMLS Web site. These forms must be mailed to the Department.

Registered Agent Appointment and Consent Form

Log into the NMLS

Once the application has been determined to be complete and all information has been submitted, the agency has 90 days to determine whether the license is granted or denied. The applicant will be notified through the NMLS of the status of the application.

In 1989, the Nebraska Department of Banking and Finance was given the authority to regulate mortgage lenders and brokers in the State of Nebraska pursuant to the Mortgage Bankers Registration and Licensing Act.

All activities conducted by mortgage lenders and/or brokers is termed "mortgage banking" in the State of Nebraska and an individual and/or business carrying out mortgage banking activities is referred to as a "mortgage banker". A mortgage banker includes any person or business that, for compensation or gain or in the expectation of compensation or gain, directly or indirectly makes, originates, services, negotiates, acquires, sells, arranges for, or offers to make, originate, service, negotiate, acquire, sell, or arrange a mortgage loan in a calendar year. These persons and/or businesses must be licensed or registered with the Nebraska Department of Banking & Finance.

This site contains links to other web sites in an effort to assist users in locating information on topics that might be of interest to them. Our agency cannot attest to the accuracy of information provided by linked sites. Linking to a web site does not constitute an endorsement by the Department or any of its employees of the sponsors of the site or the products presented on the site. Technical problems with outside links, other than a link that has been moved or changed, should be reported to the entity that maintains the site.

Credit Union Forms

Credit Union -Request to Serve a Select Employee Group
Credit Union -Request to Serve an Association
Application to Move Credit Union Main Office
New, Relocate or Discontinue a Branch
Department Supplement to the Uniform Branch Application
National Historic Preservation Act Form and Instructions
Loan Officer Application
United States Citizenship Attestation Form
Personal Financial Statement
Guidelines for Exemptions from Financial Institution Officer Licenses
Election of Loan Officer License Exemption Form
Guidelines for Revocation of Financial Institution Officer Licensing Exemption
Revocation of Election of Loan Officer License Exemption Form
Suspicious Activity Report
Tips for Preparing a SAR
Garnishment Summons Locations
Garnishment Summons Form

Credit Unions are requested to use the appropriate NCUA form available at the NCUA website for applications not available on this site. The appropriate NCUA form is accepted by our agency for state-chartered credit unions.

Following is general information for banks on the Servicemembers Civil Relief Act (SCRA), formerly known as the Soldiers' and Sailors' Civil Relief Act of 1940.

• Upon being called to active duty, the SCRA allows members of the Army, Navy, Air Force, Marines, Coast Guard, National Guard and officers of the Public Health Service or the National Oceanic and Atmospheric Administration and their spouses to reduce the interest rate on any "pre-active duty" loans to six percent or less.
   
• Any active duty servicemember who has a loan made before he/she went on active duty is eligible.
   
• The highest rate of interest allowed under SCRA is 6%. Interest is defined as including any fees (including late fees, etc.) except bona fide insurance. Any interest above 6% charged on a loan covered by this section is forgiven, not deferred.
   
• The interest rate limitation must begin on the borrower's entry into active duty. If the lender does not learn of the commencement of active duty before it occurs, the interest rate reduction must be backdated to the first day of active duty.
   
• Servicemembers have from the date of active duty until 180 days after release from active duty to request the interest rate reduction allowed by the SCRA. This request must be in writing and include a copy of his/her orders.
   
• The interest rate reduction ends on the last day of the servicemember's active duty. The bank should obtain a written statement from the borrower specifying the date that his/her active service was completed.