Temporary Authority (nationwide)
NMLS requires a W-2 employee of the same state-licensed sponsoring entity. A 1099 contractor isn't eligible for Temporary Authority to Operate.
Read the sourceW-2 vs 1099CareersW-2 vs 1099,
W-2 vs 1099,
state by state
Whether a mortgage loan officer can be paid on a 1099 depends on the state. Here's our conservative read on all 50 states and DC. W-2 is our default until a state-specific review clears an exception.
Read this first
This is an onboarding screen, not a legal opinion or a definitive list of states that authorize 1099 relationships. Sources conflict on several states. A 1099 arrangement needs both mortgage-licensing permission and a defensible tax and employment classification. Prepared October 29, 2026.
State by state01
Hover or tap a state to see its status.
Showing 51 of 51
StatePreliminary statusReview note
Alabama AL
1099 potentially allowed / verifyNo affirmative state-law clearance obtained; validate classification.
Alaska AK
1099 conditional / verifyIndustry sources disagree; a 2026 matrix says 1099 not allowed.
Arizona AZ
1099 conditional / verifyPotential 1099 with additional qualifying conditions.
Arkansas ARFuture licensed
W-2 reported / verifyMorty W-2; Vabasso 1099. Conflicting industry matrices.
California CAFuture licensed
1099 allowedConfirm whether the MLO originates under the DFPI or DRE channel.
Colorado COFuture licensed
1099 potentially allowed / verifyNo affirmative state-law clearance obtained; validate classification.
Connecticut CT
1099 potentially allowed / verifyNo affirmative state-law clearance obtained; validate classification.
Delaware DE
1099 potentially allowed / verifyNo affirmative state-law clearance obtained; validate classification.
Florida FLFuture licensed
1099 potentially allowed / verifyNo affirmative state-law clearance obtained; validate classification.
Georgia GA
W-2 / licensed-company exceptionState regulator says ordinary individual MLO 1099 prohibited.
Hawaii HI
1099 potentially allowed / verifyNo affirmative state-law clearance obtained; validate classification.
Idaho IDFuture licensed
1099 potentially allowed / verifyNo affirmative state-law clearance obtained; validate classification.
Illinois IL
W-2 reported / verifyMorty W-2; Vabasso 1099. Conflicting matrices.
Indiana IN
W-2 reported / verifyMorty and Vabasso W-2.
Iowa IA
1099 potentially allowed / verifyNo affirmative state-law clearance obtained; validate classification.
Kansas KS
1099 potentially allowed / verifyNo affirmative state-law clearance obtained; validate classification.
Kentucky KY
1099 potentially allowed / verifyNo affirmative state-law clearance obtained; validate classification.
Louisiana LA
1099 potentially allowed / verifyNo affirmative state-law clearance obtained; validate classification.
Maine ME
1099 potentially allowed / verifyNo affirmative state-law clearance obtained; validate classification.
Maryland MD
Withholding required; not strictly W-2State advisory permits alternative form only if required tax withholding occurs.
Massachusetts MA
W-2 reported / verifyVabasso W-2; other lists vary.
Michigan MI
1099 potentially allowed / verifyNo affirmative state-law clearance obtained; validate classification.
Minnesota MN
1099 potentially allowed / verifyNo affirmative state-law clearance obtained; validate classification.
Mississippi MS
W-2 reported / verifyMorty W-2; Vabasso 1099. Conflicting matrices.
Missouri MO
1099 potentially allowed / verifyNo affirmative state-law clearance obtained; validate classification.
Montana MTFuture licensed
W-2 reported / verifyMorty and Vabasso W-2.
Nebraska NE
1099 potentially allowed / verifyNo affirmative state-law clearance obtained; validate classification.
Nevada NV
W-2 reported / verifyVabasso W-2; other lists vary.
New Hampshire NH
1099 potentially allowed / verifyNo affirmative state-law clearance obtained; validate classification.
New Jersey NJ
W-2 — industry consensusSeveral industry sources list W-2.
New Mexico NM
1099 potentially allowed / verifyNo affirmative state-law clearance obtained; validate classification.
New York NY
1099 potentially allowed / verifyNo affirmative state-law clearance obtained; validate classification.
North Carolina NC
W-2 requiredState regulator explicitly requires W-2 for sponsored MLO.
North Dakota ND
1099 potentially allowed / verifyNo affirmative state-law clearance obtained; validate classification.
Ohio OH
1099 conditional / verify1099 subject to channel and entity structure.
Oklahoma OK
1099 potentially allowed / verifyNo affirmative state-law clearance obtained; validate classification.
Oregon ORFuture licensed
1099 potentially allowed / verifyNo affirmative state-law clearance obtained; validate classification.
Pennsylvania PA
1099 potentially allowed / verifyNo affirmative state-law clearance obtained; validate classification.
Rhode Island RI
W-2 reported / verifyVabasso W-2; other lists vary.
South Carolina SCFuture licensed
W-2 reported / verifyVabasso W-2; other lists vary.
South Dakota SD
1099 potentially allowed / verifyNo affirmative state-law clearance obtained; validate classification.
Tennessee TN
1099 potentially allowed / verifyNo affirmative state-law clearance obtained; validate classification.
Texas TXFuture licensed
1099 potentially allowed / verifyNo affirmative state-law clearance obtained; validate classification.
Utah UTFuture licensed
1099 conditional / verifyConfirm PLM, licensing and worker classification.
Vermont VT
W-2 reported / verifyMorty and Vabasso W-2.
Virginia VA
1099 potentially allowed / verifyOne industry source indicates a state-specific addendum.
Washington WAFuture licensed
1099 potentially allowed / verifyNo affirmative state-law clearance obtained; validate classification.
West Virginia WV
1099 potentially allowed / verifyNo affirmative state-law clearance obtained; validate classification.
Wisconsin WI
1099 potentially allowed / verifyNo affirmative state-law clearance obtained; validate classification.
Wyoming WYFuture licensed
1099 potentially allowed / verifyNo affirmative state-law clearance obtained; validate classification.
District of Columbia DC
1099 potentially allowed / verifyNo affirmative state-law clearance obtained; validate classification.
Rules that change the answer02
A few rules override the map
Georgia
The Department of Banking and Finance says ordinary individual mortgage loan officers can't be paid as 1099 contractors. The exception covers separately licensed mortgage businesses or individuals licensed as a broker/lender.
Read the sourceNorth Carolina
The NC Office of the Commissioner of Banks states that a sponsored MLO must be a W-2 employee.
Read the sourceMaryland
Maryland says a W-2 form isn't mandated, but pay must include required federal and state income-tax withholding. A standard no-withholding 1099 arrangement isn't suitable.
Read the sourceCalifornia
Check whether the MLO holds a DFPI endorsement or originates under DRE authority. The two channels aren't equivalent.
Multi-state loans
Check each state involved, the sponsoring legal entity and where the originator works. One conflicting requirement can change the structure that's allowed.
Sources and limitations03
- North Carolina regulator FAQ
- Georgia Department of Banking and Finance mortgage FAQ
- Maryland regulator employment advisory (August 2021)
- NMLS Temporary Authority worker classification
- Morty broker enrollment W-2 list
- Vabasso state matrix, last reviewed August 2026
- Coast2Coast mortgage payroll state chart, July 2026
Industry matrices aren't legal authorities and disagree on states including Arkansas, Illinois and Mississippi. A state marked “1099 possible” hasn't been individually cleared by statute or regulator, and this page doesn't imply legal certainty where primary-source confirmation wasn't available.
Nothing here is legal, tax or employment advice. Any 1099 arrangement at Future needs sign-off from an attorney or qualified compliance reviewer on state law, IRS and state worker classification, lender and investor restrictions, and payroll withholding. Questions? Talk to our recruiting team.