Licensing Status/Assistance

What are the reasons for denial of my MLO license?

A license as a mortgage loan originator shall be denied if:

  • The applicant has had a mortgage loan originator license revoked in any governmental jurisdiction unless there was a subsequent formal vacation or set aside of the revocation, or;
  • The applicant has been convicted of, or pled guilty or nolo contendere to a felony in a domestic, foreign or military court during the 7 year period preceding the date of the application, unless there has been a pardon or expungement of the conviction, or;
  • The applicant has been convicted of, or pled nolo contendere to a felony at any time preceding the date of application if such felony involved an act of fraud, dishonesty or a breach of trust or money laundering, unless there has been a pardon or expungement of the conviction.
  • The applicant has not demonstrated such financial responsibility, character, and general fitness as to command the confidence of the community and to warrant a determination that the mortgage loan originator will operate honestly, fairly, and efficiently within the purposes of this division.
  • An applicant may be precluded from obtaining a mortgage loan originator license where his or her personal history includes:
    1. Any liens or judgments for fraud, misrepresentation, dishonest dealing, and/or mishandling of trust funds, or
    2. Other liens, judgments, or financial or professional conditions that indicate a pattern of dishonesty on the part of the applicant.

    (Note that an expunged or pardoned felony conviction does not require denial of an application under items 2 and 3 above. However, the Commissioner may consider the underlying crime, facts, or circumstances of an expunged or pardoned felony conviction when determining the eligibility of an applicant for licensure.)

 

Can I find out the status of a loan originator’s license on NMLS?

Yes.  The Consumer Access section of the NMLS website provides the current status of all MLO licenses.  Additional information about determining status can be found on the NMLS Website or you may call NMLS at (240) 386-4444.

 

I received an e-mail from NMLS stating I have a deficiency in my application.  What is a deficiency?

A deficiency is placed on your NMLS record to notify you of any missing information that is still required to complete the review of your application. Licensing requirements will be approved or marked deficient on your NMLS record. Once an item is marked deficient in NMLS, the system will send an e-mail telling you that the application is deficient and asking you to log into NMLS.  Contact information for the person handling your application is included with the deficiency item. You should e-mail that employee directly using the contact information provided in NMLS.

How do I clear deficiencies in NMLS?  I have e-mailed the DBO examiner assigned in NMLS and have not heard back.

We are working diligently to complete all applications as quickly as possible.  If you believe you have completed all requirements and more than a few days has passed, contact the examiner working on your application. Contact information is provided with the deficiency item.

 

I have submitted all my documents to be licensed as an MLO and passed my education requirements; there is no updated status information in NMLS.  How do I know if my license is approved?

Your license is approved when the status is changed in NMLS to "Approved". If your license is "Approved - Inactive" you are not authorized to originate loans. 

 

My license is approved in NMLS and I have not received a paper copy of my new license.  How long will I have to wait?

We are printing licenses regularly.  The license will be mailed to the business address noted on your MU4.  We will only print licenses for MLOs whose license status is "Approved."  Licenses will not be issued for any other approved status.

 

My license is approved in NMLS, but I have not received a paper copy of my license.  What can the Department of Business Oversight do to help me?

Your license is approved when the status is changed in NMLS to "Approved". If your license status is "Approved - Deficient", "Approved - Conditional" or "Approved - Inactive" please review the deficiencies set in your NMLS record.  Upon completion of those items full approval will be granted, your license status will be changed to "Approved" and you will receive your paper license.

 

If my license is approved in NMLS and I have not yet received a hard copy of my license, can I conduct business as an MLO?

Yes.

 

What will happen if I change employers and the loans I'm working on do not close by the time I leave my employer?

MLOs cannot engage in any further acts that require a license once they leave the employment of their sponsor.  Loan applications initiated under the authority of a CFLL or CRMLA license are the property of the licensed sponsoring company.  If there are additional acts that are necessary to complete the file, those acts must be completed by an MLO who is properly licensed and employed by that sponsor.  The MLO can still get paid for the work completed prior to leaving employment.