What background check issues can disqualify you from getting an MLO license?
A felony conviction in the 7 years before you apply disqualifies you, and any felony involving fraud, dishonesty, breach of trust, or money laundering disqualifies you no matter how long ago it occurred. A prior loan originator license revocation also disqualifies you, unless it was formally vacated. Expunged and pardoned convictions do not by themselves affect eligibility. States also review your credit report and can deny a license for failing to show financial responsibility.
Under 209 CMR 41.05, the Commissioner of Banks must deny an MLO application if the applicant had an MLO license revoked in any jurisdiction, or was convicted of, pled guilty to, or admitted to sufficient facts for a felony within the 7-year period before applying, or at any time if the felony involved fraud, dishonesty, breach of trust, or money laundering. The check itself is an FBI criminal history background check run through NMLS. All fees are nonrefundable, so review these standards before applying.
Sources: 209 CMR 41.00: The Licensing of Mortgage Loan Originators (full text, Final Amendments effective 1/10/20).
Missouri requires fingerprints for a state and federal (FBI) criminal history background check. The Division of Finance cannot issue a license to an applicant with a prior MLO license revocation in any governmental jurisdiction, or with a felony conviction or guilty or nolo contendere plea within the past 7 years, or at any time if the felony involved fraud, dishonesty, breach of trust, or money laundering. Pardons do not count as convictions.
Sources: RSMo 443.713: Findings required for MLO licensure.
West Virginia may not issue you an MLO license if a prior MLO license was revoked in any jurisdiction, or if you have a felony conviction or guilty or nolo contendere plea within the five years before applying, or at any time if the crime bears a rational nexus to MLO duties. You must also show financial responsibility, so outstanding judgments, tax liens, foreclosures, or seriously delinquent accounts within the past three years can disqualify you. Unresolved or undocumented criminal-background issues draw an immediate recommendation to deny the application as incomplete.
Sources: W. Va. Code 31-17A-4: State license application and issuance (SAFE Mortgage Licensing Act); W. Va. Code 31-17A-5: Issuance of license (required findings).