Financial statement requirements for mortgage brokers

Mortgage Broker Audit requirement

As a mortgage broker, staying compliant with the Industry regulatory requirements is of utmost priority. Failure to maintain documents and good standing might result in suspension, license withdrawal, and other regulatory sanctions, which isn’t good for business. One of the ways to stay compliant is by submitting an annual financial statement with the NMLS 90 days after the fiscal year’s end. The financial statements provide a snapshot of your activities and are mandatory to maintain your operating license.


Mortgage broker’s financial statements requirement for NMLS license

According to the NMLS, a mortgage financial statement must meet the following criteria.

  1. An independent certified public accountant (CPA) firm must conduct the financial statement audit or review.
  2. The financial statement must comply with generally accepted accounting standards.
  3. The financial statement must have the balance sheets, income statement, cash flow statement, stockholders equity changes, and other important notes.
  4. When submitting a reviewed financial statement report, it must conform with the statement on standards for accounts and reviews.
  5. For a consolidated financial statement report where the licensee is not the parent entity, a consolidating schedule and breakdown of all consolidated entities must be in the financial statement.

Note: There may be additional requirements based on your annual revenue. Find out more information from the Financial statements requirements table.


Need Help?

Contact MetwallyCPA to conduct your financial statement audits or reviews for NMLS license renewal.



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