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Who's at Risk? Originator License Renewal Concerns

November 16, 2018

As another renewal season quickly approaches, it is imperative to the wellbeing of your organization that you verify all counterparties with which you have a relationship, have correctly filed their recertification with all of the state agencies in which they operate. There is a critical reason as to why this is so important - there are a number of state agencies that allow an originator license to continue operating if their renewal request was submitted during the renewal period, even if their renewal was not yet processed by the December 31st deadline. The remaining states DO NOT allow a licensee to conduct business until completion of recertification. It is important that you verify the status of a license, as it may be listed as 'Authorized' but with an expiration date of last year.

For a list of all states that DO NOT allow originators to conduct business during the grace period, visit the NMLS Resource Center.

If you discover that you are conducting business with an originator in a state that does NOT allow an extension beyond the published deadline for renewals, we encourage you to take the following action as it may affect your ability to be in compliance:

ICON-check-small2 Verify a license status by contacting the correlating state regulator directly.
ICON-check-small2 If you identify counterparties that are ‘Not Authorized’, cease all business until the status has been updated.
ICON-check-small2 Give notice regarding your issue to each state agency where you have been forced to halt business.

If you are an Optimal Blue client, you can access additional information by visiting the help site's Investor FAQ section regarding state mortgage loan originator renewals. Please note, you must be logged into Optimal Blue's Comergence platform to access this page.   

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