What happens if an MLO's license becomes inactive?

An inactive mortgage loan originator (MLO) license means you cannot conduct any loan origination activity. New York law requires an inactive MLO to keep paying the annual license fee and completing required education courses. Texas treats its Approved-Inactive status the same way: the holder is not authorized to conduct business under the license.

When a Minnesota mortgage loan originator becomes unsponsored, the license is maintained in "Approved-Inactive" status until a new valid sponsorship is filed and approved. While in that status, the MLO cannot conduct mortgage loan origination, contract processing, or contract underwriting activities. If a license remains unlicensed for five years or longer, the individual must also retake the test.

An inactive mortgage loan originator is not authorized to conduct licensed loan business. Missouri requires employment with a licensed company to maintain licensure, and renewal without sponsorship is rejected. If you miss the December 31 deadline, you may request reinstatement through the Nationwide Multistate Licensing System and Registry (NMLS) from January 1 through the end of February, complete the continuing education owed for the year the license expired, and pay applicable fees. Otherwise, you must apply for a new license under the requirements then in effect.

If sponsorship ends, the Nebraska Department of Banking and Finance places the license on Approved-Inactive status, and you cannot act as a mortgage loan originator in Nebraska until a new employer's sponsorship request is accepted. A new sponsorship generally reactivates the license without a new application. An inactive license may be renewed once, but a second renewal requires reactivation or good cause shown.

An Oklahoma MLO license becomes Approved-Inactive when a sponsorship is removed, and the licensee cannot conduct business until a new employer's sponsorship request is accepted. To change employers, the MLO grants the new company access in NMLS, the employer submits the sponsorship request, and the license returns to Approved status once the department accepts it. A licensee may also request inactive status at renewal by renewing through NMLS, paying the required fees, and notifying the Administrator in writing.

An inactive Oregon loan originator license means the holder may not take applications or negotiate mortgage loans. The Division of Financial Regulation sets a license to inactive status when no sponsoring employer has requested sponsorship, and leaving an employer makes the license inactive until a new employer's sponsorship request is accepted. A license may remain inactive indefinitely as long as it is renewed each year.

A West Virginia license that does not meet renewal standards expires. Before a new or renewed license can be issued, the MLO must complete the continuing education required for the last year the license was held. If the MLO goes five consecutive years or longer without a valid license, the SAFE test results expire and the test must be retaken. NMLS provides an individual reinstatement window from January 1 through the end of February for those who miss the renewal deadline.