As of Nov. 24, 2019, some Mortgage Loan Originators (MLOs) can continue to do business while moving between states or from a bank to a nonbank employer under a new provision of the SAFE Act of 2008 known as Temporary Authority to Operate.

To be eligible for Temporary Authority, an individual must be federally registered in the Nationwide Multi-State Licensing System (NMLS) as an MLO during the 365 days preceding application submission or licensed as an MLO in another state during the 30-days preceding application submission.

A mortgage company licensed by DFI must also employ and sponsor the individual. Additionally, individuals are not eligible for Temporary Authority if they have:

  • Been denied an MLO license or had an MLO license revoked or suspended;
  • Been subject to, or served with, a cease and desist order; or
  • Been convicted of a misdemeanor or felony that would preclude licensure under the law of the application state.

The evaluation of Temporary Authority eligibility begins when the MLO submits the application. An individual must have a relationship with a licensed company before the individual is eligible for Temporary Authority.

After filing a license application, if the individual is eligible for Temporary Authority, they must obtain both sponsorship and results of their criminal background check before Temporary Authority begins.

The company employing an MLO with Temporary Authority is subject to both the federal SAFE Act and Washington State Law to the same extent as if the MLO was licensed.

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

For more information, visit Temporary Authority to Operate on the NMLS Resource Center.

Temporary Authority to Operate