Ohio Passes New Legislation Allowing Temporary Loan Originator Licenses
by: Emily Ross, Esq.
The Ohio Division of Financial Institutions recently adopted regulations detailing the issuance of temporary Loan Originator Licenses for out-of-state loan originators new to the state. Ohio Admin. Code 1301.8. These new regulations further define the regulations allowing temporary licenses passed by the General Assembly that went into effect in March of 2013. Ohio Admin. Code 1321.537 and 1322.042.
These new provisions allow a loan originator from another state to temporarily originate loans in Ohio if certain restrictions are met. This law is designed for originators that are new to the state and want to work while waiting for approval to receive an Ohio originators license. In order to apply for a license under this provision an out-of-state originator must hold a valid originator license and be registered with the nationwide mortgage licensing system and registry (NMLS). The temporary license is valid for 90 days with the option of a 30 day renewal at the discretion of the superintendant of financial institutions.
A person seeking a temporary license in Ohio must apply in writing, under oath. They must pay a nonrefundable fee of $150 to the state of Ohio along with any other fees required by NMLS. Four pre-conditions must be met by the applicant to qualify for a temporary license.
The applicant must have two years experience in the field of residential mortgage lending with the experience occurring within the previous five years.
- The applicant has not previously applied for a temporary license in Ohio.
- The applicant has never had an originators license revoked.
- The applicant has not been convicted or pled guilty to a misdemeanor involving theft within the last seven years or a felony at any time in the past.
In addition to these requirements, the Supervisor of the Division of Financial Institutions must determine that the applicant has authorized NMLS to obtain a report of their credit and that the applicant has a sponsor in the state of Ohio that is willing to certify their employment or association. This sponsor is required to supervise the applicant in their mortgage lending the same as any other licensee working under their supervision. This sponsor is responsible for notifying the division of financial institutions immediately if the nature of the association with the applicant changes at any time. If all conditions discussed above are met, the Division of Financial Institutions can grant a temporary license to an out-of state originator.
About the Author:
Emily Ross, Esq. is Senior Counsel and Compliance Specialist at Bankers Advisory, Inc. She is a graduate of Auburn University and earned her Juris Doctor at Case Western Reserve School of Law. Emily is admitted to the Bar in Massachusetts and Vermont. She can be reached at Emily@bankersadvisory.com
Anna DeSimone founded Bankers Advisory in 1986 and is a nationally recognized authority in residential mortgage lending. She has received numerous industry awards and has authored more than 40 best practices guides and hundreds of articles.
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