Change in MLO Application Process
Until now, when a mortgage loan originator working in another state or for a federal bank wanted to move to a New York licensed mortgage banker or broker, that person couldn"t apply for a license until after he got a new job, and was unable to work at that new job until his license was processed.
DFS is changing its procedures to eliminate this delay. Individuals can now apply for an MLO license before being hired by a New York regulated entity. Once the Department is satisfied that the applicant has met all of the requirements to become an MLO other than affiliation with a New York regulated entity, the Department will send the applicant a sponsorship notification. The sponsorship notification will require the applicant to become affiliated with a New York regulated entity within 30 days of the date of such notification. The applicant must also update the MU4 application form with the date of employment and the name and address of the sponsoring entity within the 30 days. Once all necessary steps to prove affiliation are complete, the Department will complete the application process and promptly license the MLO.
Note: An MLO application will remain confidential until the MLO becomes affiliated with a New York regulated entity, at which point the application will be deemed complete and published in the Department"s Weekly Bulletin.