Ohio Law Accelerates Mortgage Loan Originators Business
Ohio recently became the first state to enact a new law that creates less rigid licensing regulations for mortgage originators.
The new law allows a licensed mortgage loan originator from another state to obtain a temporary MLO license in Ohio while they are completing the necessary requirements to obtain their regular state license. The temporary license will only be valid for 120 days.
In order to qualify for this temporary license, an individual must have at least two years of residential mortgage lending experience in the immediate preceding five years. Secondly, the loan originator could not have previously applied for a temporary MLO license in Ohio.
Additionally, the individual cannot have had an MLO or any type of comparable license revoked. Furthermore, the person cannot have been convicted of, or pleaded guilty, to a misdemeanor involving theft or a felony within the previous seven years involving fraud, dishonesty, breach of trust, theft, or money laundering.
To obtain the temporary license, an individual will be charged an application fee. Applicants will also have to be registered, fingerprinted and have a valid unique identifier through the NMLS at the time of application. Authorization must also be given for the NMLS to obtain a credit report and submit that report to the Ohio Superintendent of Financial Institutions.
Originators must also be sponsored by an employing entity in connection with their application. Any sponsor then has to supervise the conduct of each temporary licensee as is required for a regular MLO license. Sponsors also have to notify the Ohio Division of Financial Institutions through the NMLS when the individual’s temporary license is terminated.
This new law goes into effect on March 19.