§5117 Employment Transition of Loan Originators

Summary

Gives temporary permission for certain mortgage loan originators to work in a new state while they apply for that state’s license. A registered loan originator who takes a job with a State-licensed mortgage company can act as a loan originator in the state where they apply if they have not had a license denied, revoked, or suspended; have not been hit with a cease-and-desist order; have no criminal conviction that would block licensing in the new state; have filed the state application; and were listed in the Nationwide Mortgage Licensing System and Registry as a loan originator during the 1-year before filing. A loan originator already licensed in another state can also get the same temporary permission if they meet those rules, are employed in the application state, and were licensed in the other state during the 30-day period before filing. The temporary permission starts when the person files the required application information under section 5104(a) and ends at the earliest of these events: the applicant withdraws, the state denies or intends to deny the application, the state issues a license, or 120 days after filing if the application is shown as incomplete in the registry. Employers and workers using this temporary permission must follow the same federal and state rules as if the worker were fully licensed in the application state. Definitions: Application State — the state where the person is applying for a license. State-licensed mortgage company — a company licensed by a state to do residential mortgage origination and processing.