InfoBytes Blog
Wisconsin to provide temporary authority for MLOs
On November 26, the Wisconsin governor signed SB 457, which, among other things, includes provisions granting temporary authority for certain mortgage loan originators (MLOs) to originate loans in the state while their license applications are pending. Specifically, SB 457 provides that in order to be eligible for temporary authority to operate, the individual must have been a registered MLO prior to becoming employed by a mortgage banker or mortgage broker, and must meet the following additional criteria: (i) no previous MLO application denials; (ii) no MLO license suspensions or revocations in any governmental jurisdiction; (iii) has not been “subject to, or served with, a cease and desist order in any governmental jurisdiction or by the director or the [CFPB]”; (iv) has not been convicted of a disqualifying crime; and (v) must be registered with the NMLS as a loan originator for a one-year period immediately preceding the date on which the applicant furnished the required information. For individuals who were licensed MLOs in another state, and are now employed by a mortgage banker or mortgage broker in Wisconsin, the individual is eligible for temporary authority to operate if the individual met criteria (i) through (iv) listed above and was licensed in another state during the 30 days prior to submitting the required application information in Wisconsin. Beginning November 28, SB 457 permits qualifying MLO applicants to engage in mortgage transactions while their applications are pending for licensure for up to 120 days, or upon the withdrawal, denial, or approval of the licensing application, whichever is sooner.