Since the advent of the NMLS, all mortgage entities, company and individual alike, have suffered the dreaded “renewal season”. This has been a mixed blessing for both licensees and state regulators. Where before, state regulatory agencies had different renewal times for their licenses based on their particular statute which spread the work throughout the year, state agencies have now conformed to a nationwide process based in the NMLS making all other work for regulators during renewal season slow to a crawl. This can also drown compliance departments in extra work during the season, creating the potential for errors. But what if you’re not a huge company and don’t have a dedicated compliance department? You’ve got to do it yourself, which takes you away from what you do best, which is originate mortgage loans.
Here are some things anyone going through renewals should keep in mind:
You may not have until 12/31 to renew!
It is a common misconception that all renewals are due on 12/31. Many states have forward dates for their renewals as early as 12/01, and many others have requirements that must be met sooner than that! Georgia, for example, requires continuing education be done by October 31 or they assess a $1,000 fine!
Submitting a renewal request on the NMLS is not everything involved in renewing your license!
This is also a common misconception. Once you submit your renewal request on the NMLS, you are not done! The states also need bond information for companies, renewal checklists, and coverage certificates. Every state is different, and many require more paperwork rather than less. Loan Originator license renewals are not exempt from this! There is paperwork that must be sent in for LO’s as well!
Don’t wait until the last minute!
I have seen this happen many times. A person does not complete their continuing education until late December, and they cannot request their renewal on the NMLS because their education provider has not uploaded their education in time. It is very common for education providers to be flooded with courses at the end of December, which causes them to lag behind in their reporting. Don’t procrastinate!
It’s not just a company license in a state!
Even if you do everything right in renewing your company’s license, remember there may be an individual license that supports the company’s! In most instances, this is your QI (Qualifying Individual) in that state, and if their renewal hits a snag, your entire company is at risk! The same is true for branches via the branch manager. The branch license is intrinsically tied to their individual license!
Renewal season is frustrating, stressful, and confusing, but it doesn’t have to be. A perfect solution for any company is to outsource renewal submissions. This frees up compliance teams to focus on the continued well-being of the company, and it frees the officers of smaller companies to do what they do best, manage the continued growth and profitability of their livelihood. The Mortgage Licensing Group has over 20 years of experience that can be brought to bear, and has controls to make sure nothing is missed. We have also negotiated with an education provider to offer a 20% discount to our clients for all of their mortgage education needs.
Renewals are a necessary evil. But, if approached correctly, and especially if outsourced to a reputable company, ‘necessary’ can be the keyword to that sentence instead of ‘evil’. If you would like some more information on how MLG can help with your renewals, simply email me at firstname.lastname@example.org, or call us toll free at 866-576-7726 x321. We’re eager to help!
310 S. Twin Oaks Valley Rd., Suite 107-290
San Marcos, CA 92078
760-295-4040 Ext. 321