New Provision: Temporary Authority to Operate
2019 11-08 | NFM TV
A seismic sea change is going down in the mortgage licensing world—and it’s just days away. Hear how bank Loan Officers can originate at non-bank institutions almost immediately beginning November 24th in this NFM TV exclusive.
Full Transcript is Below:
- Welcome into NFM TV. I'm your host, Greg Sher, with some incredible news for mortgage branch managers and teams that like to grow. All of a sudden, bank loan officers are in play. And they're in play right away. Who better to bring on to talk about this than Stephanie Paull? She's the licensing manager of NFM Lending. Stephanie, first of all, thank you for being with us. Tell us all about this law. When does it go into effect and what does it mean?
- Thank you, Greg, thanks for having me. It goes into effect November 24th, 2019. It's the Temporary Authority to Operate. It means that federal licensed MLOs coming to the state side are able to begin origination between five to seven days after they begin, assuming the company and the branch are both licensed in the states they're looking to originate in. It also means that the state-licensed MLOs who are looking to go into an additional state can also begin origination five to seven days after the application is submitted.
- In other states that they're not licensed?
- In other states, yeah.
- So this law also benefits non-bank people right now, not just bank people, right?
- All right. Continuing education, what does that look like? Do these LOs get to skirt it and not have to do that work, or are they given a window to complete it now?
- They're never able to skirt it.
- I know, I know; I knew the answer, I just thought I'd ask the question.
- The state gives them a 120 days to be able to complete any education, documentation, fingerprinting. If you're coming from the federal side, it gives you that 120 day window to be able to complete your 20 hours to be able to be licensed in any state.
- This make sense. I don't know what there were thinking before, so bank loan officers, you can't expect them not to work while they do the continuing education. Now they can get approved within five to seven business days, start doing loans right away at correspondent lenders, non-banks; provided they do the continuing education within a 120 day period. They are able to continue all the way through, but I know there are disqualifying factors. Who doesn't qualify for this provision, this Temporary Authority to Operate? What are the disqualifying factors?
- Well, if an MLO who's ever had a cease and desist order, an application denied or any misdemeanor or felony on their background check, they will not be able to operate under the Temporary Authority to Operate. Their application will actually be processed as a regular application would.
- Well, Stephanie, this is really groundbreaking. It's a very big deal for both non-bank and, let's be honest, banking loan officers too, as now they have one less impediment to come over the non-bank side. So we really appreciate you taking the time to share this with us today on NFM TV.
- Thanks so much for having me, Greg.
- All right, that's Stephanie Paull, licensing manager of NFM Lending. I'm Greg Sher from NFM TV. See you next time.