How long can an mlo keep their license in inactive status?

In 2011, the licensing laws governing mortgage loan originators and mortgage lenders were amended. See Chapter 944 of the Acts of 2011 (available on the General Assembly's website [PDF document, download Adobe Acrobat for free]). This Advisory (1) summarizes changes relating to employers of licensed mortgage loan originators and new provisions relating to the "approved-inactive" license and (2) provides guidance to licensees and their employers regarding the effects of these legislative changes.

Licensed Mortgage Loan Originators: Eligible Employers

A licensed mortgage loan originator may originate loans only when employed by and acting on behalf of a licensed mortgage lender or a mortgage lender that is exempt from licensing in Maryland. Some licensed mortgage loan originators are employed by out-of-state mortgage lenders. Generally, under the old law, an out-of-state mortgage lender was required to maintain a physical office and a resident agent in Maryland. The new law eliminates the physical office requirement.

Approved-Inactive Licenses

The new law authorizes the Commissioner of Financial Regulation (the "Agency") to issue an "approved-inactive" license to an individual who is otherwise eligible for a license and has taken all the steps to obtain or maintain the license but is not currently employed by an eligible employer (as described above). See Section 11-603(d) of the Financial Institutions Article of the Maryland Code Annotated.

The benefit of the approved-inactive status is that an applicant/licensee will not be required to submit a new application if:

• as a new applicant, he or she has not yet secured employment or,
• as a current licensee, he or she is between mortgage origination jobs.

In practice, the approved-inactive license may be issued when all the licensing requirements are complete except for employment. However, if a licensee knows, for example, that he or she will not be employed by an eligible employer for a particular period, the licensee may request the inactive status in advance by updating his or her employment history on the Nationwide Mortgage Licensing System and Registry ("NMLS") to reflect the change in employment status and also terminating the relationship with the current employer on NMLS. (See the Quick Guides on the NMLS Resource Center for assistance.)

DURING THE TIME THAT A LICENSE IS IN THE APPROVED-INACTIVE STATUS, THE LICENSEE MAY NOT ORIGINATE MORTGAGES. HOWEVER, THE LICENSEE REMAINS SUBJECT TO ALL LICENSING REQUIREMENTS SUCH AS LICENSE RENEWAL AND CONTINUING EDUCATION.

The license remains in the inactive status until the licensee obtains employment with an eligible employer and properly submits the employment information to the NMLS and the Agency.

For now, converting an approved-inactive license to an "approved" license requires an "Amendment" to the license in NMLS and submission of supplemental documents to the Agency. (See Maryland Amendment Checklist on the NMLS Resource Center.) Both the individual holding an approved-inactive license and the new employer must submit information to NMLS. The Quick Guides on the NMLS Resource Center provide assistance to licensees and their employers.

Once the amendment is submitted and the required supplemental documents are received and approved by the Agency, the license status will be updated to "approved" and the licensee will be authorized to originate mortgages.

Contact NMLS at 240-386-4444 for questions pertaining to the NMLS. Contact the Agency licensing staff by phone at 410-230-6155 or 888-784-0136 for further assistance regarding Maryland specific requirements.

An inactive license is a current license that needs to be renewed every two years without having to complete CE. When you decide to provide real estate services again, complete the required CE, and submit a request to activate your license. Unlike with an expired license, an inactive license is not subject to any new license education and examination requirements.   Going inactive is a good solution for someone who is not providing real estate services currently but might want to do so in the future. 

This application is used to change the status of a license from active to inactive outside the renewal cycle. Your license can remain in inactive status for as long as you wish. However, you must continue to renew your license every two years by the renewal due date. Should you decide to reactivate your license, you will be required to show proof that you have complied with the continuing education requirements for the renewal cycle immediately preceding license reactivation. When you are ready to reactivate your license later, you will file the application for Change of Status from Inactive to Active. Please note that you cannot use this form to change your license status from active to inactive at renewal.

Application Requirements:

• FEE: Pay the required fee as provided in the application. If applying online, you can pay with a credit card or electronic check. If mailing your application, please include a check payable to the Department of Business and Professional Regulation.

• APPLICATION: Complete the application by clicking on the "Online Services" link or the "Printable Application" link at the bottom of the page.

  Note: First time DBPR Online Services users will need to create an account and then link existing license(s). Instructions and additional information can be found by selecting "DBPR Online Services Features and Steps" on the Main Menu. Returning users will need to make sure their license is linked before proceeding.

  What is the reinstatement deadline in TX MLO?

  Annual renewal fees are due by December 31 of each year. (d) Expiration. A residential mortgage loan originator license expires on December 31 if the annual renewal fee has not been paid by December 31. After expiration, a license may be reinstated during the period from January 1 through the last day of February.

  What is the required reinstatement fee if an MLO fails to renew their license on time in GA?

  NMLS requires a $30 processing fee for each MLO seeking to renew or reactivate a registration. MLOs who are submitted for renewal but did not complete renewal attestation prior to December 31 need to be reactivated, incurring an additional $30 processing fee at the time of reactivation.

  How many hours of continuing education are required for MLOs in NV each year?

  All Commercial and Non-NMLS mortgage loan originators are required to complete a total of 5 hours of CE for annual renewal. This education must include: 2 hours of ethics (which shall include fraud, consumer protection, and fair lending issues.

  When must renewals be completed for FL mortgage professionals?

  Florida Mortgage Loan Originator License Complete Renewal Requirement Items Submitted via… Mortgage Loan Originators (MLOs) must submit a renewal request through the Nationwide Mortgage Licensing System and Registry (NMLS) by December 31.