Loan officer licensing laws have been revised in Arizona and Virginia.
Arizona modified its requirements for obtaining a loan originator license as well as continuing education effective immediately.
Under the revised law, passed as House Bill 2098, a loan originator must be granted a license by the superintendent after completing a 20-hour education course during the three-year period before the time of application.
The time period for passing an examination is eliminated as the applicant must demonstrate knowledge and understanding of federal and state laws. It does not have to be taken within one year of the granting of the license going forward.
An originator must retake the loan originator's exam if he or she failed to maintain a valid license for a period of five years or longer.
A licensee is allowed to be inactive for more than two consecutive renewal periods in any 10 year period. Licensing just became a little easier in Arizona.
Separately, effective July 1, a new law in Virginia authorizes the State Corporation Commission to issue transitional mortgage loan originator licenses.
This will allow an individual to act as a mortgage loan originator for a period of no more than 120 days, during which time the individual may fulfill pre-licensing education and written test requirements and apply for a mortgage loan originator license.
The SCC may issue a transitional mortgage loan originator license to an individual who is licensed to originate mortgage loans under the laws of another state or, to the extent permitted under the federal Secure and Fair Enforcement for Mortgage Licensing Act, to an individual who was a registered mortgage loan originator within two months prior to the date that the individual applied for a transitional mortgage loan originator license.
An individual applying for a transitional mortgage loan originator license is not required to comply with prelicensing education requirements or pass a written test requirement. In addition, the Commission shall not issue a transitional mortgage loan originator license unless it finds that the applicant has never had a mortgage loan originator license revoked by any governmental authority, has not been convicted of, or pled guilty or nolo contendere to, certain felonies, and has become registered through, and obtained a unique identifier from, the Nationwide Mortgage Licensing System and Registry and finds that the applicant is employed by a person licensed by the SCC as a mortgage lender or mortgage broker.
This is one way to get your MLOs working faster when they transfer in from another state or company.