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President Signs SAFE Act Amendment

Editors note: These amendments don't take effect until November 24, 2019 but are still great news for our industry!


A little known provision of the bill to reform Dodd-Frank that was signed into law by the President on May 24th (Public Law 114-174) has a major impact on federal loan originators moving to a state-regulated employer, and state-regulated loan originators moving from state to state. Beginning November 24, 2019, both groups can start originating loans immediately while their state license applications are pending, so long as certain criteria is met. If you work for a bank and want to move to a state-regulated company, or if you're a state-regulated loan originator wanting to offer loans in a new state, read on to see if you'll qualify.


Temporary Authority for Loan Originators Moving From a Depository Non-Depository Institution

If you are a registered loan originator (depository institution) and become employed at a state-regulated (non-depository) institution, you can now temporarily originate loans if:

  1. you've never had a loan originator license denied, revoked, or suspended,

  2. you've never been subject to or served a cease and desist order,

  3. you've never been convicted of a misdemeanor or felony that would preclude loan originator licensure, and

  4. you've applied to be a state-licensed loan originator in the state you wish to originate, and e) you've been registered in NMLS as a loan originator during the one (1) year period preceding your application date.

If you meet this criteria, your authority to temporarily originate loans will last until a) you withdraw your application, b) the state denies or issues a notice of its intent to deny your application, c) the state grants your application, or d) 120 days after your application submission (whichever is earlier).


Temporary Authority for State Loan Originators Moving To Another State

If you are a mortgage loan originator (non-depository/state regulated) and your employer has a company license in the new state you want to originate in, you can now temporarily originate loans in the new state if:

  1. a) you've never had a loan originator license denied, revoked, or suspended,

  2. you've never been subject to or served a cease and desist order,

  3. you've never been convicted of a misdemeanor or felony that would preclude loan originator licensure,

  4. you've applied for a mortgage loan originator license in the new state you wish to originate in, and

  5. you've been licensed in NMLS as a loan originator in another state during the thirty (30) day period preceding your application date.

If you meet this criteria, your authority to temporarily originate loans in the new state will last until a) you withdraw your application, b) the state denies or issues a notice of its intent to deny your application, c) the state grants your application, or d) 120 days after your application submission (whichever is earlier).


Need Licensing Help?

If your state-regulated (non-depository) mortgage company needs help with getting a federally registered loan originator licensed quickly, or you want to save time and money on getting your loan originators licensed in new states, contact us for help at or call us at (312) 588-6800. These changes may still be far away, but our expert mortgage licensing services can help you submit your license applications more quickly and with less effort.

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Located in Raleigh, North Carolina

ryan at lynxlicensing dot com

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