What is “Transitional Licensing Authority” & A New 1003?”
Tomorrow night I will be speaking at the CT Mortgage Association event at The Library Wine and Bistro in Wallingford, CT. Since I posted the event, I have received questions about the topics. It occurred to me that while I am researching all new things mortgages, most originators, managers and companies are focused on closing loans. So here is a brief summary. If you’re in the CT area and want to hear more, come tomorrow night.
The short version: The SAFE Act has been amended. Beginning later this year, originators who are Registered with the NMLS, employed by a depository institution and meet the criteria, will be able to apply for a state-license through the NMLS and being immediately originating loans once sponsored by the state-licensed company. The “transitional authority” is for 120 days while they are working on their state-license. The same applies to NMLS state-licensed originators, who want to apply for a license in another state. They too will have 120 days to obtain another state license and may begin originating in the application state for 120 days while the application is being reviewed. The criteria to be “eligible” is specific.
If you have questions, please consult your compliance department. This is a bit of a game changer for Registered originators. They no longer have to wait till they are licensed to switch to a broker or lender.
Regarding the new 1003, it is a brand new form, that looks different, has different questions, is eight pages and separates the “borrower” information from the “lender information.” And, while change creates challenges, this one really is a good one! In the next 60 days, lenders MAY begin using the new form. Suffice it to say, this will require additional training, systems updates, documentation requirements and what I am sure are other unanticipated concepts to deal with. In the long run, it will be better for originators and consumers! I would love your feedback! Email me at: email@example.com
There is a lot to learn. Hope to see you tomorrow. Oh, and…please feel free to share this article.