MAMB News > New Employment Requires New License

New Employment Requires New License
Online Best For Securing LO License

With today’s changing mortgage market, an unexpected high number of licensed Maryland loan originators (LO) have found themselves seeking new employment. It is important that they remember what they must do in terms of updating their license with the Division of Financial Regulations.

Maryland law requires that a licensed LO who is no longer in the employment of his or her broker-of-record cease soliciting loans until such time as new employment is secured. Then the LO must apply with the Division for an "employer change." In doing so, he or she must return to the Division his or her original license and a new employment statement and pay a $75 change of employment fee.

MAMB contacted the Division of Financial regulations and learned that the most expeditious way – in fact, the only way – to accomplish the change of employment licensing is by doing so on line. The Web site is http://dllr.state.md.us/license/electron.html#finreg.

According to MAMB’s source in the Division licensing office, if an LO complies with the above, he or she can have a new license processed within a week. If not, it could take over a month.

What is critically important is the fact that until the LO has his or her new license reflecting his or her new employer, he or she CANNOT solicit or write new loan applications. If mortgages are originated for a new employer before the mortgage originator submits the employer change to the Commissioner of Financial Regulation and receives a new license, penalties will be assessed and the LO risks permanent lose of his or her license.

Both MAMB and the division realize that the LO needs to make a living and that a quick turn-around of the new employer license is important, but the responsibility to follow the recommended process is that of the LO.

MAMB would like to thank it's Gold Partners in Education for their continued support:

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