Legality of brokering notes

[Iverem Rose]

Does anyone know in which states is it illegal to "broker notes" without a license?

[Bill Gulley]

Seems to me if you need to ask, you're not really ready to broker notes, no offense, but being able to better clarify the question. There are several "registrations" that may be required. Don addressed mortgage broker, but there is also the matter of being in a finance business using other people's money, you'll need registrations in all states with varied requirements.

Your operations will dictate your license requirements, buying notes using funds other than your own money will take a broker's license federally if not required at the state level, Kansas doesn't have a broker's license but will have registration as a finance company depending on what you do.

You'll find too that other business activities, like soliciting the public for loans or for investors can change the requirements. There are also office requirements applicable to brokers, bond, net worth requirements, physical office address and phone requirements, some dictate operating hours.

Need to pick a state and then comply there. :)