What is the Deadline to Renew a Mortgage Loan Originator License?

Published On: August 15, 2024Categories: MortgageLast Updated: October 18, 202411.2 min read

About the Author: Richie Gill

If you’re a mortgage loan originator (MLO), keeping your license current is crucial to staying active in the industry. Each year, MLOs are required to renew their licenses by a specific deadline. Missing this deadline can lead to penalties, and in some cases, you may need to reapply for your license altogether. In this article, we’ll explain the general renewal deadlines, state-specific variations, and what you need to know to avoid missing the cut-off.

Nationwide Renewal Deadline: December 31st

For most MLOs in the United States, the standard deadline to renew your license is December 31st each year. This date is consistent across most states, but some states have an earlier deadline.  You can find more information on individual state renewal deadlines on the NMLS website.

In order to complete your continuing education in time for the renewal deadline, we recommend starting as early as possible. If you wait too long, your credits may not be processed in time for the December 31 renewal, which could cause your license to lapse. Our 8 Hour SAFE Comprehensive CE Course is designed to be user friendly, so you can easily complete your CE in time!

Why You Shouldn’t Wait Until the Last Minute

While December 31st may seem far off, waiting until the end of the year can lead to unnecessary stress and potential delays in processing your renewal. The Nationwide Multistate Licensing System & Registry (NMLS) processes thousands of applications during the renewal season, which can result in longer wait times for approvals.

State-Specific Renewal Deadlines

Although December 31st is the national deadline for most MLOs, some states may have earlier renewal deadlines. For example, states like Georgia or Washington may require MLOs to submit renewal applications before December 31st. It’s important to check your state’s specific requirements through the NMLS website or your state’s regulatory agency to ensure you meet their deadline.

Late Renewal Grace Periods

Some states offer a grace period for MLOs who miss the December 31st deadline. However, this typically comes with additional fees and potential restrictions on your ability to operate. During the grace period, your license status may be listed as inactive, meaning you cannot originate loans until the renewal is completed.

What Happens If You Miss the Renewal Deadline?

If you fail to renew your license by the state-specific deadline or during the grace period, you may face significant consequences. In some cases, this means you’ll need to reapply for your license, which can include retaking certain exams or resubmitting your background checks and fingerprints. This process can take time and delay your ability to work as an MLO.

Tips for Meeting the Deadline:

  1. Mark the Deadline on Your Calendar: Set reminders to ensure you start your renewal process early, ideally by October or November.
  2. Complete Continuing Education Early: Don’t wait until the last minute to fulfill your continuing education (CE) hours.
  3. Stay Organized: Keep track of all required documents, certifications, and fees to avoid any last-minute issues.
  4. Check State-Specific Requirements: Review any special requirements or earlier deadlines that your state may have.

Conclusion

The mortgage loan originator license renewal deadline is typically December 31st, but it’s important to start the process early to avoid delays. By being proactive and understanding your state-specific requirements, you can ensure your license stays active and that you remain compliant with industry regulations.

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