Licensing Reform Good for Loan Officers

May 14, 2019
Licensing-Reform-Good-for-Loan-Officers
Loan officers who move form a bank to a nonbank lender, or move across state lines, will be granted “transitional authority.”

 

It’s about to get much easier for loan originators to switch jobs and continue originating without any license-related delays. Under the current rules of the Secure and Fair Enforcement for Mortgage Licensing Act, an LO who moves between states or from a bank to a nonbank is required to wait for a new license before they can begin originating at their new job. But after a years-long push from the residential finance industry, those rules are about to change. Later this year, new LO licensing rules will take effect that will allow originators to move from a bank to a nonbank or to a new state and keep originating new residential loans without having to wait for a new license. The changes to the LO licensing rules were part of the Economic Growth, Regulatory Relief and Consumer Protection Act signed into law last year. In addition to rolling back many Dodd-Frank Act regulations, the bill also included changes to the LO rules, which the industry has lobbied several years for. Beginning Nov. 24, 2019, that will allow them to originate while they work to meet the SAFE Act’s licensing and testing requirements. LOs will then have 120 days to complete the SAFE Act licensing requirements. As with these types of regulations, the rules are much more complicated than that, but luckily the Nationwide Multistate Licensing System & Registry recently published an FAQthat provides answers to many relevant questions about the new rules. 

Source: HousingWire