Debt Negotiation Licensing
Who needs a license?
"Debt negotiation" means, for or with the expectation of a fee, commission or other valuable consideration, assisting a debtor in negotiating or attempting to negotiate on behalf of a debtor the terms of a debtor's obligations with one or more mortgagees or creditors of the debtor, including the negotiation of short sales of residential property or foreclosure rescue services.
Who does not need this license?
- Any attorney admitted to the practice of law in this state who engages or offers to engage in debt negotiation as an ancillary matter to such attorney's representation of a client.
Declaratory Ruling re: Attorney Exemption
- Any bank, out-of-state bank, Connecticut credit union, federal credit union or out-of-state credit union, provided subsidiaries of such institutions other than operating subsidiaries of federal banks and federally-chartered out-of-state banks are not exempt from licensure.
- Any person licensed as a debt adjuster pursuant to Sections 36a-655 to 36a-665, inclusive, of the Connecticut General Statutes while performing debt adjuster services.
- Any person acting under the order of a court.
- Any bona fide nonprofit organization organized under Section 501(c)(3) of the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as amended from time to time.
Mortgage Loan Originator License Requirement
Effective October 1, 2011, any individual who engages or offers to engage in debt negotiation of a residential mortgage loan on behalf of a mortgagor for compensation or gain must first obtain and annually maintain a mortgage loan originator license, under Section 36a-489, unless exempt from such licensure. Please see Section 36a-671e of the Connecticut General Statutes.
Opinion re: Mortgage Loan Licensure Requirement
Please reference the relevant statutes before applying for a license. Please also note the Schedule of Maximum Fees.
Frequently Asked Questions
The licensing fees for the main office and the branch office applications are the same.
$800 - Application filed between 10/1/14 and 9/30/15
License Application Forms
If you will be conducting Connecticut licensing activity from the corporate office/headquarters, you are required to designate this location as the "Main Office."
If you will not be conducting Connecticut licensing activity from this location, then the initial application filed with this department will be considered the Main Office for licensing purposes in the State of Connecticut.
Any additional location to be licensed in the State of Connecticut.
- Checklist - Main Office (3 pages, 285 KB)
- Checklist - Branch Office (2 pages, 284 KB)
- Application - Main Office (5 pages, legal size, 296 KB)
- Application - Branch Office (2 pages, legal size, 285 KB)
- Attestation Form to be attached to required financial statement (1 page, 275 KB)
- Debt Negotiator Unsecured Bond (1 page, 17 KB)
- Debt Negotiator MLO Bond (1 page, 19 KB)
- Surety Bond Calculation Instructions (2 pages, 14 KB)
- Personal and Business History Statement (2 pages, legal size, 287 KB)
- List of Employees (2 pages, 19 KB)
Connecticut Department of Banking
Consumer Credit Division
260 Constitution Plaza
Hartford, CT 06103-1800
Staff: Maria Burgos
Telephone: 860-240-8211 or toll-free 800-831-7225
Fax: (860) 622-4971
Content Last Modified on 1/23/2015 8:20:42 AM