Complete Your NMLS New or Transition Application

The Virginia Bureau of Financial Institutions recently put out a news release reminding its loan originators that they must complete their transition to the Nationwide Mortgage Licensing System (NMLS) before July 1, 2010. Evidently, many loan originators are taking the first steps to get their record onto the NMLS but they don’t complete the process. When you don’t complete the process, you cannot get an approval to work as a loan originator. This fact is true for loan originators in every state that is conducting licensing through the NMLS.

What does completing the process mean? As a company or a loan originator, you need to start by creating an MU1 (for the company) or an MU4 (for the loan originator) form. Many people think that once they have completed that step they are finished. Not even close. After paying your transition or new license fees, all mortgage lenders, brokers, and loan originators need to check to see whether they need to submit the jurisdictional checklist to the licensing agency. Who needs to submit the checklist? If you answered “yes” to any disclosure question, if your state requires additional forms or a surety bond, if your state requires a state background check, you may need to submit the checklist. The checklist may require you to submit additional documentation that you can access only through the checklist.

Many loan originators are neglecting to check back to the work list that is posted in your record on the NMLS to see if the licensing agency has posted deficiencies that must be corrected before your license is fully transitioned or approved. The deficiencies are usually items that you would have submitted if you had sent in the checklist, but can also include deficiencies because you did not take the national or state exam yet (and the deadline may be coming soon), you have not submitted your FBI criminal background check or a state background check or maybe a required surety bond.

Don’t forget to add in extra time that your state licensing agency will need to investigate your background. Just because you already are licensed does not mean that the state will not review your MU1 or MU4 record, now that the licensing standards have changed.

Remember that your licensing agency can assess fines and penalties if your license is not fully approved by the deadline. Don’t wait for the last minute. What will you do if you need to re-take one of the required tests and you have less than 30 days until the transition deadline?

Please feel free to forward this blog post to your colleagues, listserv members or favorite bloggers. Or if you would like to run it (in whole or in part) in any publication or quote from it, simply include my name and URL: http://www.mortgagelicensesolutions.com. No prior permission needed. To inquire about joining my list to receive my blog posts or my availability to speak to your group or write an article for your publication, please email me at Robin@Mortgagelicensesolutions.com. Thank you!