52231 - Mortgage and Nonmortgage Loan Brokers
If you're diving into the world of finance and insurance, understanding NAICS code 52231 is essential. This code represents a vital segment of the lending industry: Mortgage and Nonmortgage Loan Brokers. These brokers play a crucial role in connecting borrowers to lenders, facilitating loan origination without directly lending money themselves. Whether you're a business owner, investor, or industry professional, grasping the details of this NAICS classification can open doors to new opportunities and compliance understanding.
What is NAICS Code 52231?
NAICS code 52231 covers establishments primarily engaged in acting as brokers in the origination of both mortgage and nonmortgage loans. These businesses serve as intermediaries, facilitating loan transactions between borrowers and lenders without being the source of the loan funds.
Key Points:
- Does not include lending funds directly.
- Facilitates mortgage and nonmortgage loan origination.
- Connects borrowers with appropriate lending institutions.
Industry Sector and Business Activities
NAICS 52231 falls under the larger Finance and Insurance sector, which encompasses a wide range of financial services companies. Typical businesses and activities under this code include:
- Mortgage Loan Brokers: Helping individuals and businesses secure mortgage financing.
- Nonmortgage Loan Brokers: Facilitating loans such as personal loans, commercial loans, and other credit arrangements not secured by real estate.
- Loan Origination Services: Providing administrative and brokerage services that manage the loan approval and closing process between borrowers and lenders.
Size Standards for NAICS Code 52231
For small business eligibility and government contracting purposes, the U.S. Small Business Administration (SBA) defines size standards related to NAICS 52231:
| Size Standard Type | Threshold |
|---|---|
| Small Business | Average annual receipts of $16.5 million or less |
Meeting these size standards can qualify businesses for specific small business programs and preferences in government contracts.
Examples of Businesses under NAICS 52231
- Independent mortgage loan brokers helping homebuyers secure financing.
- Commercial loan brokers arranging working capital loans for small businesses.
- Companies providing loan origination and processing services for various types of credit transactions.
NAICS Code 52231 Details Table
| Element | Details |
|---|---|
| NAICS Code | 52231 |
| Title | Mortgage and Nonmortgage Loan Brokers |
| Description | Establishments primarily engaged in acting as brokers in the origination of mortgage and nonmortgage loans, facilitating transactions between borrowers and lenders. |
| Sector | Finance and Insurance |
| Typical Business Types | Mortgage loan brokers, Nonmortgage loan brokers, Loan origination services |
| Size Standard | $16.5 million average annual receipts (small business size threshold) |
Frequently Asked Questions (FAQs)
What services do mortgage loan brokers provide under NAICS 52231?
Mortgage loan brokers under this classification arrange and facilitate mortgage loans between borrowers and lenders but do not fund loans themselves.
Does NAICS 52231 include banks or credit unions?
No. This NAICS code excludes lenders who fund loans directly such as banks, credit unions, or mortgage bankers.
What are nonmortgage loans in this context?
Nonmortgage loans include personal loans, commercial loans, and other financing arrangements not secured by real estate.
How does this NAICS code affect government contracting?
Businesses under NAICS 52231 can qualify for specific small business contracting programs if they meet the SBA size standards, providing access to federal opportunities.
Can a business offer both mortgage and nonmortgage loan brokerage services under this code?
Yes, many businesses in this classification provide brokerage services for both mortgage and nonmortgage loans.
Understanding NAICS code 52231 can help businesses position themselves strategically in the finance and insurance market. Whether facilitating mortgage loans or connecting clients to other types of credit, companies in this industry play a key role in the lending ecosystem.
Keywords: NAICS code 52231, mortgage loan brokers, nonmortgage loan brokers, loan origination services, finance and insurance sector, loan brokerage, small business size standards
