Effective November 24, 2019, mortgage loan originator (“MLO”) transitional licensing authority will allow qualified MLOs who are changing employment from a depository institution to a state-licensed mortgage company and qualified state-licensed MLOs seeking licensure in another state to act as a MLO while completing state-specific requirements for licensure. What are some highlights?
• MLOs with temporary authority are subject to the requirements of the SAFE Act
• No separate application is required for temporary authority – an eligible MLO will automatically receive temporary authority upon submission of their MLO license application in NMLS
• Authority ends at the earliest of the following events: (1) MLO withdraws application; (2) state denies or issues a notice of intent to deny the application; (3) state grants the
license; or (4) 120 days after the application submission if application is listed on NMLS as incomplete
• Lenders should be prepared to monitor the status of an individual’s license and reassign active loans in the pipeline if a license is ultimately not approved