MA Loan Originators must be licensed by 7/1/2008 and complete course by 8/31/2008 or lose license

Mortgage Loan Originators wishing to apply for a license in Massachusetts

WHO IS REQUIRED TO HAVE A MORTGAGE LOAN ORIGINATOR LICENSE?

Any natural person who: (a) is employed by or associated with one (1) and not more than 1 mortgage lender or mortgage broker licensee regulated by the Division; and (b) negotiates, solicits, arranges, provides or accepts residential mortgage loan applications on real property located in Massachusetts, or assists consumers in completing such applications.

Sole proprietors licensed as mortgage brokers or mortgage lenders by the Division, as well as owners, officers and directors or entities licensed as mortgage lenders or mortgage brokers, are required to be licensed as mortgage loan originators in Massachusetts if they meet the definition above.

WHEN CAN AN INDIVIDUAL APPLY FOR A MORTAGE LOAN ORIGINATOR LICENSE?

Individuals who meet the definition of Mortgage Loan Originator and who are currently working in the industry must submit applications to Massachusetts through NMLS before July 1, 2008. Prior to becoming licensed, all applicants must complete a residential mortgage lending course that has been approved by the Division of Banks. However, applicants may submit their application filings to Massachusetts through NMLS prior to completing a course. Individuals who are presently working as loan originators may continue to operate after June 30th only if they have submitted a mortgage loan originator license application to Massachusetts through NMLS. Beginning July 1st, any individual who does not have a license application pending with or approved by the Division of Banks may not continue to originate loans in Massachusetts. Any individual who submits an application before July 1st will have until August 31, 2008 to complete a residential mortgage lending course. If such an applicant fails to complete a course prior to September 1, 2008, his/her mortgage loan originator license application will be terminated.

For information regarding the educational requirements for Mortgage Loan Originator license applicants, please see Regulatory Bulletin 5.1-105. The Division of Banks currently accepting applications for the approval of Mortgage Loan Originator educational courses.

Approved Loan Originator Education Courses

HOW CAN AN INDIVIDUAL APPLY FOR A MORTAGE LOAN ORIGINATOR LICENSE?

The NMLS will allow mortgage loan originators, or the companies they are employed by, to manage their licenses with the Division, as well as other participating state regulatory agencies, with a single record conveniently maintained in an electronic form and accessed through a secure website. Mortgage loan originators' records in the NMLS will consist of all the information contained on the Form MU4 - Uniform Individual Mortgage License/Registration & Consent form which can be found on the Division's website at www.mass.gov/dob, by clicking on 'Apply for or Amend a License' under 'Online Services', and following the links. MU4 filings for mortgage loan originator license applicants can be created and completed by the mortgage loan originator or by the company that employs the individual. Please note that companies which employ loan originators must be in an approved status in the NMLS before MU4 filings may be submitted for their mortgage loan originators. It is important that mortgage loan originators consult with their companies prior to creating or completing a record in the NMLS. In the case where the employing company creates and/or completes a mortgage loan originator record in the NMLS, the mortgage loan originator will still need to create an individual user account, access the system, and confirm the accuracy of the information on his/her record.

If an individual already has a record in the NMLS, meaning he/she was once licensed/registered as an individual in another state participating in NMLS, then applying for a mortgage loan originator license in Massachusetts merely involves filing an individual NMLS record (Form MU4) with Massachusetts through NMLS and mailing in the required jurisdiction-specific requirements to the Division.

If an individual does not currently have a record in the NMLS and is interested in applying for a mortgage loan originator license in Massachusetts, getting started is easy. The NMLS website will walk you through all the steps here: Getting Started on NMLS.

New applicants should review the Division's jurisdiction-specific items here: NMLS State Licensing Resource Page, and should also review Massachusetts Statute and Regulations, available on the Division's website by clicking on "Apply for or Amend a License" under "Online Services" and following the links, or by clicking here: MA Statute and Regulations

Please be advised that mortgage loan originator license, application investigation and NMLS system processing fees are required to be paid at time of application, when the record is submitted to the Division through the NMLS. PLEASE NOTE THAT ALL FEES ARE COLLECTED THROUGH THE NMLS AND ARE NOT REFUNDABLE, SO APPLICANTS SHOULD REVIEW ALL LICENSING REQUIREMENTS PRIOR TO SUBMITTING AN APPLICATION TO THE DIVISION.

Additional information regarding the licensing of mortgage loan originators will be available shortly on the Division's website, and will be updated periodically. If you have any questions, please call 617-956-1500, extension 351, or send an email toDOBLoanOriginatorLicensing@state.ma.us.