Mortgage Loan Originator (MLO) - NMLS/SAFE ACT

MLO License Endorsement Renewal Requirements

The NMLS renewal application filing period begins each year on November 1st and ends December 31st. MLO license endorsements which were approved for issuance prior to November 1, 2012 will expire on December 31, 2012. Thereafter, MLO license endorsements will be issued annually and expire December 31st of each year.

Current renewal requirements for an Individual MLO license endorsement includes a renewal request/attestation filed electronically through NMLS, the appropriate renewal fees, and filing evidence of completion of 8 hours of continuing education (CE). CE must be taken through a course provider approved through NMLS. However, nothing precludes a CalBRE approved CE provider from creating a course that meets all the NMLS requirements as well as the CalBRE requirements for CE credit, qualifying and approving the course under NMLS and also CalBRE, and then offering the course to licensees. Since it may take as long as seven (7) days for a CE course provider to report a course completion into NMLS, MLOs are strongly encouraged not to wait until the final days of the renewal period to try to complete CE or they may be prevented from submitting an on-time renewal.

Renewal requirements for a Real Estate Corporation Company MLO license endorsement includes a renewal request/attestation filed by the licensed designated broker-officer electronically through NMLS, and the payment of the appropriate renewal fees. The licensed designated broker-officer must complete 8 hours of NMLS approved CE and submit an individual renewal request/attestation through NMLS. This individual renewal request/attestation should be submitted prior to the filing of the corporation renewal request/attestation.

Renewal requirements for a Real Estate Broker Sole-Proprietor Company MLO license endorsement includes a renewal request/attestation filed electronically through NMLS, and the payment of only a NMLS processing fee. The real estate broker must complete 8 hours of NMLS approved CE and submit an individual renewal request/attestation through NMLS. This individual renewal request/attestation should be submitted prior to the filing of the sole-proprietor company renewal request/attestation.

Note: The submission of mortgage call reports is a SAFE Act requirement and is also required pursuant to California Business & Professions Code 10166.08. A licensed company MLO that fails to submit required 2012 mortgage call reports to NMLS will result in the denial of the renewal of that company's MLO license endorsement for 2013. Renewal fees will not be refunded if a MLO renewal filing is denied for failure to submit one or more mortgage call reports.

At the time the renewal request is submitted to NMLS, a MLO license endorsement must be in one of the following "Eligible Statuses": Approved, Approved-Conditional, Approved-Failed to Renew, Approved-Inactive or Terminated-Failed to Renew.

Failing to renew a MLO license endorsement by January 1st will result in an existing MLO license endorsement status changed to "Terminated – Failed to Renew" and requires that the licensee cease performing all activities that require a MLO endorsement.

NMLS does allow for a renewal to be requested during a "Reinstatement Period" which begins January 1st and continues through the end of February. Additional late fees will not be assessed for filings submitted during the reinstatement period. Failing to request a renewal by the end of February will result in a MLO license endorsement status changed to "Terminated-Expired" and will require the filing of a new application, the authorization of a new credit report, the submission of new fingerprints for a criminal background check, completion of (late) CE, and the appropriate NMLS and CalBRE fees.

It is highly recommended that payments to renew a MLO license endorsement are submitted by credit card. Paying renewal fees by check/ACH may cause unnecessary delays in the processing of a MLO license endorsement renewal.

Additional information regarding the MLO renewal process can be found on the NMLS Web site.

Filing Requirements for Licensees who conduct Residential Mortgage Loan Activities

All licensees must report to the Bureau of Real Estate if they make, arrange, or service loans secured by residential property, 1 to 4 units, under the authority of a Bureau of Real Estate license. The report must be made within 30 days of commencing activity and must be completed online using Form RE 866 - Mortgage Loan Activity Notification.

Penalty fees can apply for failure to submit this required notification. Penalties are fifty dollars ($50) per day for the first 30 days the report is not filed and one hundred dollars ($100) per day for every day thereafter not to exceed a maximum of $10,000.

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