SEC Compliant?

Is your company SEC Compliant?

What?  To be compliant with the state laws, your Company MUST hold NMLS  Mortgage Licenses or Exemptions.

Who? Every new Company entering the Mortgage Industry.

Why?  Your Company’s violations of state and federal laws [SEC and Licensing] will cause Penalties, Fines, Cease and Desist Orders.

Where?  All 50 states and DC

When?  Before your Company can start business and generating Revenue.

How?    Herb Thomas will design and conduct your Due Diligence Project.


What is a Due Diligence Project ? 

Goal: The due diligence project is conducted to help satisfy your fiduciary duty to your investors to reveal all risk factors.

The Due Diligence Project:

[1] Herb Thomas will review of the details of the COMPANY’s mortgage lending activities.

[2] Herb Thomas  will research of applicable state licensing statutes to determine whether mortgage licenses are required or whether your company qualifies for licensing exemptions.

[3] Herb Thomas  will make formal written requests to state licensing agencies to confirm the results of his research.

[4] Herb Thomas and his staff will conduct status inquiries to his requests,  further explanations of his positions, encouragement to state agencies to reply in writing to his requests.

[5] Herb Thomas will analyze and interpret the responses to his requests and recommend that your company either rely upon a state’s written confirmation or pursue a license.

[6] Obviously Herb Thomas cannot guarantee that his recommendations or the state responses that a license is not required will not subsequently prevent a states from charges of “unlicensed mortgage activities” because the states will generally say that the mortgage company should  not to rely upon their response and has the burden of proving an exemption.   However, when a state rules that based upon the facts presented that it does not think that the mortgage company is required to obtain a license, it is the best confirmation available that Herb Thomas’s research is correct.  The inquiry is a due diligence request that cannot  be accomplished by any other source or method.  It should at least provide a “chilling effect” on the state licensing enforcement department from pursuing charges of “unlicensed mortgage activities” when the state said a license was not required.  The mortgage company must make a business decision whether to rely upon the state response or pursue a license. 

[7]  If the mortgage company decides to pursue a license, Herb Thomas and his staff will prepare the NMLS to file the applications, help gather the documents to be filed directly with the States, submit the Applications, monitor the Applications, respond to all Conditions posted on the NMLS until license approval.