Thinking of Purchasing some notes in Kansas. Do I need a license

[Sandy Uhlmann]

I was considering purchasing a NP note in Kansas.  Do you need a license to buy or sell residential mortgage notes in Kansas?  I plan to have a servicer if that makes any difference.

[Patrick Desjardins]

For now, there are only a handful of places that need extra licenses as a passive debt buyer, and afaik Kansas isn't one. It's mostly debt collection licenses. 

Something few people realize, and I had no idea either, is that we're considered debt collectors even if we don't talk to borrowers and it's our own debt (ie we're not doing collections for others). Reason is that we bought the loans when they were in default so there is a reasonable expectation that collections will be required. If we bought the loan when it was performing and it went in default then we wouldn't be considered a debt collector. (edit: I'm sure there are multiple interpretations in the different juridictions, but looking at it this way covers your bases.)

I say for now because it's likely that more and more states (money grabbers) will add extra licensing requirements. North Carolina has one, and if I'm not mistaken Maryland is pushing for one.

If you plan on buying a lot of notes in a lot of states, start looking into boutique firms that help you manage licensing requirements. Your time is best spent buying and managing the notes than the licenses.