As part of the Economic Growth, Regulatory Relief, and Consumer Protection Act signed into law, May 24, 2018, a new section was added to the federal Securing America’s Federal Elections Act (S.A.F.E. Act). This new section will be effective on November 28, 2019.

Temporary Authority Granted

The new S.A.F.E. Act section includes a rule that grants a Mortgage Loan Originator (MLO) the temporary authority to originate loans while completing state-specific requirements for licensure such as education or testing. This rule applies to qualified MLOs who are changing employment from a depository institution to a state-licensed mortgage company and qualified state-licensed MLOs seeking licensure in another state.

In order to be eligible, an MLO must be employed and sponsored through the NMLS by a state-licensed mortgage company and be either a) registered in NMLS as an MLO during the one year preceding the application submission or; b) licensed as an MLO during the 30-day period preceding the date of application …