§5117 Employment Transition of Loan Originators

Summary

Gives temporary authority to work as a loan originator in a State where someone is trying to get a license. "Application State" means the State where they want the license. "State-licensed mortgage company" means a company licensed in any State to do home loan origination and processing. A registered loan originator who gets a job with a State-licensed mortgage company can act temporarily in the application State if they: have not had a loan originator application denied or a license revoked or suspended anywhere; have not been subject to a cease-and-desist order anywhere or under section 5113(c); do not have a disqualifying misdemeanor or felony under the application State’s law; have filed an application in that State; and were registered in the Nationwide Mortgage Licensing System and Registry as a loan originator during the 1-year before submitting the information required under section 5104(a). A loan originator already licensed in another State can also have temporary authority if they meet those same tests, are employed by a State-licensed mortgage company in the application State, and were licensed in a different State during the 30-day period before submitting the information required under section 5104(a). Temporary authority starts when the required information is submitted and ends at the earliest of: the applicant withdraws; the State denies or says it intends to deny; the State grants a license; or 120 days after submission if the application is listed as incomplete in the Nationwide Mortgage Licensing System and Registry. Employers and individuals acting under this temporary authority must follow the same federal and State rules as if they held the State license.