Steps to Renew Your Mortgage Loan Originator License
As a mortgage loan originator, staying licensed is critical to continuing your career in this regulated field. The renewal process ensures that you are up-to-date on the latest industry standards, regulations, and best practices. In this guide, we’ll walk you through the essential steps to renew your mortgage loan originator (MLO) license.
1. Know Your Renewal Deadline
Every state sets its own licensing period, but most licenses expire on December 31st each year. Missing your renewal deadline can result in penalties or even suspension of your license. It’s important to keep track of your state-specific deadlines through the Nationwide Multistate Licensing System & Registry (NMLS).
2. Complete Continuing Education Requirements
One of the key steps in license renewal is fulfilling your continuing education (CE) requirements. Typically, the NMLS requires 8 hours of CE each year, which includes:
- 3 hours of federal law and regulations
- 2 hours of ethics (including fraud, consumer protection, and fair lending issues)
- 2 hours of non-traditional mortgage lending
- 1 hour of elective coursework (which may need to be state specific depending on where you are licensed)
Ensure you take courses approved by the NMLS so they count toward your renewal. Career Classroom is an approved education provider that offers an 8-Hour SAFE Comprehensive CE Course.
3. Ensure Your MU4 Form Information is Accurate
The NMLS requires you to verify the information listed on your Individual MU4 is still accurate. Some reasons for updating this information including a change in name, residence, regulator deficiencies or actions that require disclosure. You can find a detailed instructions for updating your MU4 here on the NMLS website.
4. Submit Your Renewal Application via NMLS
As your final step in the renewal process, you will need to submit your renewal application through the NMLS. You should check with your sponsoring company to determine who is responsibility for submitting your renewal. The renewal application can be completely fully online. For a step-by-step guide, we recommend reviewing the NMLS handbook for companies or individuals.
5. Check Your License Status
After submitting your renewal application, regularly check your NMLS account for updates. Once your state regulator processes your renewal, your status will update to “Approved” or “Renewed.” If there are any issues, the NMLS will provide instructions on how to resolve them.
Conclusion
Renewing your mortgage loan originator license is an essential annual task that requires attention to deadlines, continuing education, and compliance with your state’s regulations. By following these steps, you can ensure a smooth renewal process and stay on track in your MLO career.
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