Why Your License Renewal Fees May Be So Cheap

I just renewed the licenses for one of my mortgage broker clients and its 6 loan originators. I used the company’s credit card for payment of the renewal fees and sent the payment confirmations (I print out every payment confirmation for every client) to my client with an explanation of what each confirmation was for. I also sent my client a quick memo explaining that this year’s renewal fees were much cheaper than next year’s renewal fees would be.

Why are this year’s renewal fees cheaper? My client has multiple licenses and some of its state licenses were transitioned to the Nationwide Mortgage Licensing System (NMLS) in 2008, some in 2009, and some in 2010. The states which transitioned onto the NMLS in 2008 and 2009 charged full renewal fees for the company, its branches, and its loan originators. The state that transitioned to the NMLS in 2010 did not charge a renewal fee because it essentially charged the renewal fee when the transition to the NMLS took place. For that state, my client paid only an NMLS administrative fee which is $30. For a company with one branch and 6 loan originators, it meant that my mortgage broker client was not paying hundreds of dollars in renewal fees at this time.

Next year, at this time, all of the company’s state banking departments will charge full renewal fees. This means that that this client (and all licensees) must have a stash of cash to pay for its renewals at one time. There is no more spreading out your renewal fees. And all states now renew annually (my client had a state license that renewed every two years) plus all the loan originators need to take continuing education next year.

If you are a mortgage lender or broker or a loan originator, and you transitioned to the NMLS in 2010, you spread out some of your fees over the course of this year. It may seem fairly inexpensive to now renew your licenses under the new statute. But, next year, you will be paying the full amount due in November or December. And you will need to take continuing education. Make sure you have enough in reserves to pay these necessary expenses.

What Happens After You Renew Your Company License Through the NMLS?

Starting next week, all company mortgage licensees (mortgage bankers, mortgage lenders, and mortgage brokers) must renew the licenses that expire on December 31, 2010. For those of you who are licensed in states that transitioned onto the Nationwide Mortgage Licensing System (NMLS) in 2008 or 2009, this transaction is old hat. For those of you who are renewing for the first time, you may be wondering about what the procedure is like. I have been helping clients with their NMLS renewals since 2008 so I’ve been down this road before.

The renewal process for most states starts with your using the NMLS to indicate which licenses you are renewing. You attest to your company record and pay the renewal and NMLS fees. You should be aware that there are still several states that are not renewing company licenses through the NMLS (although they may be renewing loan originator licenses through the NMLS). These states are CA-DRE, Hawaii, Maine, Florida, Utah-DFI, Nevada, Minnesota, and Delaware. If you are licensed in one of those states that are not renewing through the NMLS, you should have received your renewal license application and instructions already. If you have not, you should call your state licensing agency and request the renewal materials. You want to start the renewal process as early as you can.

Once your company has renewed its licenses through the NMLS, you need to review the jurisdictional checklist for each state in which your company is licensed. Print out the Renewals Checklist for each state and complete the Checklist. Send in each Checklist together with all additional documentation that is required to each state regulatory agency.

The state may take a few weeks to process your renewal application and additional documentation. If you have not sent in the additional documentation and checklist, the reviewer will post the items still needed on the Task List associated with your company’s MU1 record. You need to keep checking to see if the Task List is changed. You can also view the company’s license status by clicking on the Composite tab and looking at the View license/Registration List.

If you wait until the end of December to renew your licenses, it is likely that your renewal approval will not come through until some time in January. This creates problems for mortgage brokers whose investors will not let them close without a 2011 license. Don’t wait until the last minute to renew.

Contact Robin Gronsky at Robin@Mortgagelicensesolutions.com if you need help with your licensing (company or MLO) renewals.

Is Your State License Renewing Through the NMLS?

I have recently received communications from a few states that require license renewals soon but either all or part of the renewal process must be done directly through the regulatory agency, and not through the Nationwide Mortgage Licensing System (NMLS). For some states, you need to submit some documentation before the renewal process starts or submit an entire license renewal application and all of its supporting documentation to the agency which granted your license approval. If you are in one of these states, you should have received these communications already. To ensure that you are not in one of the states that renews licenses outside of the NMLS process, call or email your state regulatory agency to confirm that there is nothing that you need to do before renewals through the NMLS start on November 1, 2010.