The Latest on Temporary Authority to Operate for MLOs

If you’ve helped an MLO apply for a Washington license recently, you likely experienced the impact of a new provision of the SAFE Act known as Temporary Authority to Operate. Under Temporary Authority, certain qualified MLOs can conduct business while their application is pending with the Department. Temporary Authority was effective November 24, 2019 and now the first data is available.

Nationally, through the end of 2019, about half of MLO application submitted were eligible for Temporary Authority. Of those, about 31% held a MLO license in another state, about 17% held a federal registration, and about 2% had a potential disqualifying issue.

In Washington State, through February 21, more than 600 applicants qualified for Temporary Authority. The Department has since issued a license to more than half of those applicants.

Some important reminders about Temporary Authority include:

• Licensees employing MLOs who have Temporary Authority are subject to both the federal SAFE Act and Washington State Law to the same extent as if the MLO was licensed.
• If a MLO with Temporary Authority is working at a location that’s not WA licensed, the individual cannot conduct Washington activities until that location is properly licensed.

Visit the NMLS Consumer Access website to verify an MLO’s license or Temporary Authority status.

Visit the Temporary Authority to Operate webpage to learn more about Temporary Authority, including eligibility requirements.