Federal Criminal Background Report:
Explanation and Instructions
Beginning July 1, 2008 federal criminal background checks are required for each equitable owner, director, manager, or officer of a loan broker or loan broker license applicant, and an applicant to be licensed as a principal manager or originator. These individuals must submit fingerprints for a NATIONAL criminal history background check by the Federal Bureau of Investigation. The definition of each individual is as follows:
- Ultimate Equitable Owner, Director, Manager, or Officer: If the ultimate equitable owner, director, manager or officer is a non-individual, then the following rules for criminal background checks apply depending on the type of entity.
- Corporation - all individuals owning ten percent (10%) or more of the Corporation’s equity must file a criminal background report.
- General Partnership – all partners must file a criminal background report.
- L.L.C. – all members must file a criminal background report.
- If a non-individual owns ten percent (10%) or more of that Corporation’s equity, is a partner in that Partnership, or is a member of that L.L.C., then the same rules for criminal background reports apply for those non-individuals. These rules apply for every level of ownership until only individuals remain.
- Principal Managers: any individual seeking to serve as a principal manager for a licensed loan broker.
- Originators: any individual engaging in origination activities on behalf of a licensed loan broker.
Instructions for obtaining an FBI background report