This article will help you understand the eligibility status requirements of Temporary Authority to Operate inside of NMLS.

Temporary Authority Eligibility & Process

TABLE OF CONTENTS

• Temporary Authority Eligibility & Process
• What is Temporary Authority?
• Eligibility Criteria
• Disqualifying Events
• Temporary Authority Process
• Resolving Common Issues
• Temporary Authority License Statuses

What is Temporary Authority?

Temporary Authority to Operate permits qualified MLOs to originate loans for 120 days while completing any state-specific requirements for licensure such as education or testing.

Eligibility Criteria

To be considered eligible for Temporary Authority, an MLO must meet several criteria: 

• Individuals must be Federally registered in NMLS as an MLO continuously during the one-year period preceding the application submission; or be State licensed in NMLS as an MLO continuously during the 30-day period preceding the date of application.
• A break in service is permitted but shall not exceed fourteen calendar days. The break in service begins when Federal registration or State licensure ends, and stops when the new employer submits a sponsorship request.
• MLOs must be employed by a State licensed mortgage company in the application-state. This is reflected through the company establishing a relationship with the individual and listing the worker classification as a W2 employee.

Disqualifying Events

You will not be considered for Temporary Authority if the following criteria are met:

• MLOs who have had an MLO license application denied, revoked or suspended in any jurisdiction or has been subject to and/or served with a cease and desist order will not be eligible to apply for Temporary Authority to Operate.
• Individuals that have been convicted of a misdemeanor or felony that would preclude licensure under the law of the application state will not qualify for Temporary Authority to Operate.

Temporary Authority Process

Before applying for Temporary Authority make sure that you meet all the requirements. NMLS will run a check to see if you are eligible, and if not, there is no option to go back once submitted. To apply for Temporary Authority, individuals will need to complete the MU4 filing in NMLS. See instructions on how to apply for Individual (MU4) Filing. 

Once you've added a license, you should be able to view your eligibility for temporary authority, see below.

Resolving Common Issues

What do you do when the Temporary Authority eligible column in the MU4 does not reflect "Yes"?

• A "No" in Temporary Authority eligible column indicates the individual does not meet the temporary authority requirements. This is typically related to the W2 status and Relationship.
• A "N/A" in Temporary Authority eligible column indicates the individual has not been licensed or registered for the required timeframe.

Temporary Authority License Statuses

Once the Temporary Authority Eligible column reflects a yes, the filing can be submitted, and the license application will automatically enter the Temporary Authority workflow.

Once Temporary Authority has been approved, you will have a maximum of 120 days to complete any license items the state issues to you. See instructions on where to view your license items.

References:

Temporary Authority to Operate (nationwidelicensingsystem.org)

Eligibility Criteria - NMLS Temporary Authority to Operate Basics | Rise 360 (articulate.com)