Calculator Plugin Test

AL Alabama

Regulated by the Alabama State Banking Department, Alabama’s licensing structure is that it is divided into two types, Consumer Credit License (Lender) and a Mortgage Brokers License. Each of these licenses require a Surety Bond that is based off the loan volume of the previous calendar year. However, the Consumer Credit License allows for different loan types beyond mortgages and the license location cannot be a residence or in a zoned residential area. Although technically neither license requires a brick and mortar location for the business, they do define where business can be conducted under these licenses. Alabama also requires a QI for a mortgage broker’s license, with a defined amount of experience necessary to fill that position versus other states that may not have those same experience requirements.

StateLicense NameState FeeBond Prem.RA FeeSoS FeeMLG Processing FeeTotal
AlabamaMortgage Broker License$720$188—$284Call for More Information$1,192
AlabamaConsumer Credit License$720$188—$284Call for More Information$1,192
AlabamaAlabama Debt Collection—$5,000——Call for More Information$5,000

License: Mortgage Broker License

  • Operating Status: Broker
  • Bond Amount: $25,000
  • Net Worth: $25,000
  • Brick & Mortar: No
  • Financial type: Unaudited

The required Surety Bond amount is based off of loan volume in AL loans closed in the previous calendar year. One item required for this application is a Resume form all owners, principals, and executive officers reflecting at minimum the last 5 years. The requested licensed location must not be a residence or zoned residential. A QI is required for this license and must have 2 of the last 4 years experience.

Things to note: Each branch location, wherever located, desired to conduct business under this license will require a branch license. (Branch app is almost the same price as the company app.)

License: Consumer Credit License

  • Operating Status: Lender/Broker
  • Bond Amount: $25,000
  • Net Worth: $25,000
  • Brick & Mortar: No
  • Financial type: Compiled
The required Surety Bond amount is based off of loan volume in AL loans closed in the previous calendar year. Resume of all owners, principals, and executive officers are required by the application for the past 5 years. The requested licensed location must not be a residence or zoned residential.  QI is not required for this license. The Consumer Credit License allows a broader range of loan activity beyond traditional home loans.

License: Alabama Debt Collection

Application process To obtain a debt collection license in Alabama, applicants generally need to submit a completed application to the Alabama Banking Department, provide a surety bond of $5,000, pass background checks for all control persons, and meet net worth or financial requirements. The application review typically takes 30-90 days. Renewals Debt collection licenses in Alabama generally require annual renewal. Renewal generally involves submission of a renewal application, payment of renewal fees, updated surety bond confirmation, and any required annual reports. Late renewals may incur additional penalties. Third-party debt collectors operating in Alabama are also generally expected to comply with the federal Fair Debt Collection Practices Act (FDCPA). Alabama may impose additional requirements beyond federal standards, including restrictions on communication methods, required disclosures, and limitations on fees that may be collected.
← Back to License Directory