A mortgage subsidiary of a bank or thrift must now obtain a license to set up shop in the District of Columbia.Historically, mortgage banking and brokerage subsidiaries were exempt from D.C. licensing laws. Only independent mortgage companies had to register with the Office of Banking and Financial Institutions, which regulates financial activities in the city. Lenders and loan brokers now must fill out an application to OBFI, along with a check for $1,100, to obtain a license. Each license is good for one year and is renewable for $800. The parent bank or thrift is exempted from the new licensing law, as are lenders and brokers that originate three or fewer loans per year in the city.
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