Temporary Authority

The Economic Growth, Regulatory Relief and Consumer Protection Act (S. 2155) passed in 2018 includes a new provision under the SAFE Act known as Temporary Authority to Operate (TA). This allows a qualified mortgage loan originator to continue originating loans while in the process of completing any state-specific requirements. Temporary Authority is available in all states and allows a break in service of no more than 14 calendar days.

Who does this apply to?

    • Qualified MLOs who are changing employment from a depository institution to a state-licensed mortgage company
    • Qualified state-licensed MLOs seeking licensure in another state

What’s required to use TA?

    • MLOs employed by a state-licensed mortgage company in the application-state AND
    • Either:
      • Is a registrant in NMLS (works for a depository) as an MLO continuously during the one-year period preceding the application
      • Licensed as an MLO continuously during the 30-day period preceding the date of application 

Who is not eligible to use TA?

      • MLOs who have had an MLO license application denied, revoked or suspended in any state
      • MLOs who have been subject to, or served with, a cease and desist order
      • MLOs who have been convicted of a misdemeanor or felony that would preclude licensing under the law of the application state

How long can an MLO operate under Temporary Authority?

      • Temporary Authority ends when the earliest of the following occurs:
        • MLO withdraws the application
        • State denies or issues a notice of intent to deny the application
        • The state grants the license
        • 120 days after the application submission if the application is listed on NMLS as incomplete
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