November 24, 2019 is the effective date for Temporary Authority, and it’s right around the corner.
Transitional Licensing was passed as part of S. 2155, the Economic Growth, Regulatory Relief, and Consumer Protection Act and provides 120-day temporary authority to operate as a state-licensed mortgage loan originator for individuals who are:
1) a registered loan originator who becomes employed by a state-licensed mortgage company, or 2) a state-licensed loan originator who becomes employed by a state-licensed mortgage company in a different state.
To help state agencies and industry participants access educational materials and other information, the NMLS has developed a Resource Center page. It includes a step-by-step demo to help companies with application workflow. It takes originators through what companies and LOS need to do including:
- MLO – granting company access
- MLO – submitting their application
- Company – requesting sponsorship
- Company – completing Worker Classification
In addition to the standard application of background information, new data required will include “Worker Classification.” Eligibility for TA will require W-2 employment.
The effective date for TA is coinciding with the state-license renewal season (November 1-December 31st). If applying for a new state-license under Temporary Authority, your license may not be reviewed or approved until after December 31, 2019.
We strongly advise that you know what is needed and, submit everything needed to be deemed a COMPLETE application. Hmm…sounds like a loan transaction!
For more information on Temporary Authority, email me: firstname.lastname@example.org.