Mortgage originators have until July 1 to get licensed

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VAR members are urged to ask their loan officers if they are licensed in the Commonwealth of Virginia.

Virginia law requires all mortgage originators who take applications for or negotiates the terms of residential mortgage loans that are secured by real property located in the Commonwealth to be licensed through the National Mortgage License System (NMLS) before a July 1, 2010 deadline or face a fine of up to $2,500 per day.

On April 12, the Virginia Bureau of Financial Institutions distributed a press release projecting that up to 2,800 mortgage originators still need to go through the licensure process. That could spell trouble for originators who haven’t started on this, since NMLS has asked them to file their applications by March 1.

Here are some of the steps mortgage originators need to complete to become licensed in the Commonwealth:

  • Complete pre-licensing education through an NMLS-approved provider
  • Receive a passing score on national and state mortgage tests administered by NMLS
  • Pass a criminal background check administered by NMLS
  • Complete an application for license through the NMLS
  • Provide the required surety bond
  • Be found by NMLS to meet the financial responsibility, character, and general fitness qualifications required by law

As you might guess, it could take a while for originators to jump through all those hoops, especially when there are an estimated 2,800 of them pushing the deadline to get through the process.

Don’t let your clients’ home purchase get held up by a non-licensed originator. Make sure the loan officers you work with are licensed.

For more information about the licensing process, please visit:

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2 Responses to Mortgage originators have until July 1 to get licensed

  1. Finally! Why has it taken so long for this process to materialize? I wonder if the licensing requirement could have lessened the number of unscrupulous LOs during the boom, hence lessening the occasions of predatory lending.

  2. I’ve started to ask LOs at depository institutions (those folks currently exempt from the licensing requirements) when, and if, they plan to seek a license voluntarily. Current count: 0%.

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