How to Add More States As a Mortgage Loan Originator
How to Add More States As a Mortgage Loan Originator
To add more state Mortgage Loan Originator (MLO) licenses to your existing credentials, you’ll need to navigate the Nationwide Multistate Licensing System (NMLS) requirements and the states where you want to expand your licensing. Here’s a step-by-step guide to help you through the process:
- Ensure You Meet Initial Prerequisites
Having already obtained an MLO license in one state, you’ve likely fulfilled the foundational requirements under the SAFE Act. This includes passing the National SAFE MLO Test and completing 20 hours of NMLS-approved Pre-Licensure Education. Ensuring your existing credentials are in good standing is a crucial step, as it instills a sense of preparedness and confidence when considering adding licenses in additional states. - Find a Sponsor in the New State
You must be sponsored by a mortgage company or broker licensed to operate in each state where you intend to obtain a new Mortgage Loan Originator (MLO) license. Your current employer may already be licensed in multiple states, or you might need to affiliate with a new sponsor. Check with your employer or explore companies that operate in your target states and are willing to sponsor you. - Research State-Specific Requirements
Each state has its own set of rules in addition to the federal SAFE Act minimums. Some states may require additional Pre-Licensure Education, while others may mandate a physical office location, surety bonds, or unique fees. By visiting the NMLS website and thoroughly reviewing the 'State Licensing Requirements' section for each state you’re targeting, you'll gain a comprehensive understanding of these specifics, making you feel informed and knowledgeable. See our State Education Requirements Page. Have questions? We have answers; contact us. - Complete Additional Education (If Required)
If a state requires state-specific PE, enroll in an NMLS-approved course tailored to that state’s laws and regulations. These courses are available at AAA Mortgage Training's State Prelicensing Courses. Once completed, ensure your education credits are reported to your NMLS record. You can update your education information by logging into your NMLS account and following the instructions. - Submit an Application via NMLS
Log in to your NMLS account and file an Individual Form (MU4) for each new state. Update your record with any required information, such as sponsorship details, and pay the state-specific application fees, which vary but typically range from $30 to $200 per state, plus NMLS processing fees. You may also need to submit fingerprints or a credit report if they are not already on file or if the state requires a new check. - Provide Supporting Documentation
Some states require additional documents, such as a surety bond certification, proof of financial responsibility, or a background check. Mail these to the state’s regulatory agency if instructed, as not all submissions are handled electronically through NMLS. - Await Approval and Temporary Authority (If Applicable)
Under the SAFE Act’s Employment Transition provision (effective November 24, 2019), if you’re already licensed in one state and meet specific qualifications (e.g., no revoked licenses, clean background), you may be granted temporary authority to originate loans in a new state while your application is pending. Check with the state regulator or NMLS to confirm eligibility. - Maintain Compliance and Continuing Education (CE)
Once approved, it's crucial to maintain compliance by completing 8 hours of NMLS-approved continuing education (CE) annually, plus any state-specific CE hours, to renew all your licenses. Renewal deadlines are typically December 31st, and fees vary by state. Keeping your sponsorship and employer details up to date in NMLS is a responsibility that, when fulfilled, ensures there are no lapses, making you feel diligent and responsible.
Tips for Success in Becoming a multi-state Mortgage Loan Originator or loan officer
- Plan Ahead: Processing times can range from a few weeks to several months, depending on the state and your level of preparedness.
- Leverage Your Existing License: If you’ve passed the National Test with Uniform State Content, you usually won’t need to retake it for additional states unless your license has lapsed.
- Consult Your Employer: Larger firms often have compliance teams to assist with multi-state licensing.
By following these steps and tailoring your approach to each state’s unique requirements, you can successfully expand your MLO licenses and grow your business across multiple markets. If you’re unsure about a specific state, the NMLS website or your state’s mortgage regulator can provide detailed guidance.
Want expert guidance on creating a multi-state licensing plan of action? Contact us; we have been helping Mortgage Loan Originators become multi-state loan originators or loan officers for over 20 years.
Summary-recap
This document provides a comprehensive guide for Mortgage Loan Originators (MLOs) looking to add licenses in additional states. It outlines the necessary steps and considerations for successfully navigating the process.
- Initial Prerequisites: Ensure that existing MLO licenses are in good standing and that foundational requirements under the SAFE Act have been met, including passing the National SAFE MLO Test and completing 20 hours of NMLS-approved education.
- Sponsorship Requirement: Find a mortgage company or broker licensed in the new state to sponsor the application for a new MLO license. This may involve checking with the current employer or seeking new sponsorship opportunities.
- State-Specific Research: Each state has unique licensing requirements that exceed federal standards, including additional education, fees, or physical office locations. Researching these requirements is essential for compliance.
- Application Process: Submit an application adding additional states to become a multi-state mortgage loan originator, through the NMLS, including required fees and documentation. After submission, MLOs may be granted temporary authority to originate loans while waiting for approval, provided they meet specific qualifications.
P.S. Another helpful tool is the NMLS Checklist Compiler. Here, if you are exploring fees and requirements for mortgage loan originator licensing, click 'New Application,' select the target state for which you wish to add a mortgage loan originator license, and then select 'Individual.' The information displayed included the regulator's entity and contact information, general details, new application requirements, and licensing fees.
Links to expedite the process of adding states
Contact us to craft a plan to add states in a sustainable, efficient, and systematic manner.
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