Podcast
Questions and Answers
When does the renewal period for an MLO license begin each year?
When does the renewal period for an MLO license begin each year?
What is the maximum duration that records related to loan originator compensation must be retained?
What is the maximum duration that records related to loan originator compensation must be retained?
What is required if the credit report for an MLO has expired?
What is required if the credit report for an MLO has expired?
Which of the following is NOT a required component of the annual continuing education for MLOs?
Which of the following is NOT a required component of the annual continuing education for MLOs?
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What happens if an MLO's licenses become inactive for five or more years?
What happens if an MLO's licenses become inactive for five or more years?
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What is the record retention period for final disclosures related to a mortgage loan?
What is the record retention period for final disclosures related to a mortgage loan?
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Which of the following must an MLO ensure regarding their Individual MU4 Form?
Which of the following must an MLO ensure regarding their Individual MU4 Form?
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What is the effect of gaps in employment and residence history on an MLO's license renewal?
What is the effect of gaps in employment and residence history on an MLO's license renewal?
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Which of the following statements is true regarding license renewal for MLOs who miss the December 31 deadline?
Which of the following statements is true regarding license renewal for MLOs who miss the December 31 deadline?
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What must be done to satisfy license items on an MLO's NMLS account?
What must be done to satisfy license items on an MLO's NMLS account?
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Study Notes
MLO License Maintenance and Renewal
- MLO licenses expire annually on December 31st.
- Renewal period opens November 1st.
- Renewal requirements include:
- No outstanding license items (e.g., outstanding notices from regulators)
- Updated Individual MU4 Form on NMLS.
- Current addresses and contact information.
- Updated disclosure answers as needed.
- Authorization of a new credit report if the existing one is expired.
- No withheld records or required information.
- No gaps in employment or residence history without explanation.
- "Yes" answers to disclosure questions require explanation and documentation.
- Completion of required continuing education for the year.
- Continuing education requirements:
- At least 8 hours annually, including:
- 3 hours of Federal Law and Regulation.
- 2 hours of ethics (fraud, consumer protection, fair lending).
- 2 hours of nontraditional mortgage products.
- 1 hour of elective (may include state-required content).
- Courses must be NMLS-approved and taken in the year of renewal.
- No repeating the same course in consecutive years.
- NMLS-approved courses are available in multiple formats (classroom, online, etc.).
- State regulations may impose additional requirements.
- At least 8 hours annually, including:
- Fingerprints required every three years (for criminal background checks).
- Payment for license renewal through the renewal process on NMLS.
- License expiration and renewal policies differ by state.
- Some states allow origination even if the license isn't renewed if an application was submitted by December 31st; others don't allow origination if the license isn't renewed by January 1st.
- Late renewal is sometimes allowed with a potential fee.
- Reinstatement of lapsed licenses after five consecutive years of inactivity requires:
- Recertification in pre-licensure education.
- Passing a re-tested exam.
- A new criminal background check, credit report, and any required updates to NMLS.
Record Retention
- General rule: Records kept for two years after disclosure requirements are met or action is needed.
- Specific rules apply to different mortgage disclosures and documents.
- Transactions secured by a dwelling: Evidence of compliance retained for three years after consummation.
- Early disclosures: Evidence is kept for three years after the later of consummation, disclosure requirement/action dates.
- Final disclosures: Completed closing disclosures and related docs retained for five years after consummation.
- Loan sales and transfers: Disclosures given to new owners, who are responsible for retaining them for the remaining five-year period.
- Loan originator compensation: Lender employers retain records sufficient to document compensation and agreements for three years after payment.
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Description
Test your knowledge on the requirements for maintaining and renewing MLO licenses. This quiz covers important deadlines, continuing education requirements, and necessary documentation. Ensure you understand the renewal process before the deadline approaches!
