Temporary Authority W-2 Requirement
For those who have been following our series and attending our webinars on 1099 v. W-2, here’s a new consideration in the age-old debate.
The Economic Growth, Regulatory Relief and Consumer Protection Act (EGRRCPA) revised the SAFE Act. Effective Monday, November 25, 2019 the revision allows QUALIFIED Registered (depository) and State-licensed (non-depository) loan originators to begin originating PRIOR to the approval of a NMLS MLO state license.
To help companies and originators during this transition, the NMLS now has a TA PAGE. If you are wondering if you qualify under Temporary Authority, I highly encourage you to review the FAQs published by the NMLS.
To be clear, this is NOT a license. It is “Authority” to perform origination activities during a transition between employers (depository to non-depository) or originators in the process of applying for a new state license under the SAFE Transitional License Act.
What it all really means is that beginning November 25th, 2019 depository employees may leave their current employer, and IF qualified for TA may immediately begin originating, prior to the license issuance, provided they met the application requirements.
It is important to think about ALL of your employees and their current classification. The new rule requires “To be eligible for Temporary Authority, one criterion is that the MLO must be a W2 employee of the sponsoring state-licensed company. This guide shows you how to classify an MLO as either a W2 or Non-W2 employee in NMLS.”
Email me: email@example.com if you have questions or comments. 866-256-3766.