District of Columbia Mortgage Loan Originator License

This license is required of any person who, on behalf of a District of Columbia mortgage lender, mortgage broker, or mortgage dual authority licensee, takes a residential mortgage application; offers or negotiates terms of a residential mortgage loan; or solicits or offers to solicit a mortgage loan on behalf of a borrower for compensation or gain.

The District of Columbia (“District”) Department of Insurance, Securities and Banking (DISB)is the regulatory agency responsible for administering the District’s Mortgage Lender and Broker Act of 1996, effective September 9, 1996 (D.C. Law 11-155; D.C. Official Code §§ 26-1100 et seq. (2001)) ("the Act"); and Chapter 26 of Title 26C of the District of Columbia Municipal Regulations (26C DCMR §§ 26-1100 et seq.). This document is an integral part of the initial license application process and contains important information, instructions, and requirements. IMPORTANT: DISB strongly recommends that applicants carefully review the D.C. mortgage lender and broker law and accompanying rules to help ensure familiarity and compliance with statutory and regulatory requirements applicable to mortgage loan originators. The law and rules provide definitions, licensing requirements and exemptions. Applicants are also encouraged to carefully review guidance provided in this checklist in conjunction with the law and rules BEFORE applying for a license. Guidance in this checklist does not replace or supersede applicable law and regulations. Consultation with professional counsel is strongly advised. Who Is Required to Have This License? This license is required of any individual who: (1) takes a residential mortgage loan application; (2) offers or negotiates terms of a residential mortgage loan; or (3) solicits or offers to solicit, a mortgage loan on behalf of a borrower for compensation or gain. Individuals holding themselves out to the public to be mortgage loan originators are also required to obtain mortgage loan originator licenses. See D.C. Code Sec. 26-1103 (a)(1). Further, D.C. Code Sec. 26-1101 (5A) defines “independent contractor” to mean an individual who is required to maintain a license to engage in residential mortgage loan origination activities as a loan processor or underwriter. Who Does Not Need This License? Complete exemption provisions are provided for in D.C. Code § 26-1102. Exemptions. Pre-Requisites for License Applications NOTE: In the case of previously licensed individuals, all outstanding issues such as education, fines, examination, reporting and other supervisory matters should be resolved before reapplying for a license. Pre-licensure Education: See License Requirements and Fees Chart for details Testing: See License Requirements and Fees Chart for details License Issuance/Renewal The initial license term shall begin on the day the application is approved. The license shall expire on December 31st of the year in which the license term began, unless the initial license date is between November 1 and December 31, in which instance the initial license term shall run through December 31st of the following year. License Certificate DISB does not issue paper or electronic licenses for this license type. Approval in NMLS serves as the official record. License Lookup/Verification Licensees and other inquiring parties can perform a search through the NMLS’ Consumer Access Portal at http://www.nmlsconsumeraccess.org to determine whether an entity is licensed as a mortgage loan originator in the District. ADDITIONAL INFORMATION Review the checklist below and gather ALL required information and documentation BEFORE applying for a license. A complete application includes all required information detailed in the license checklist. Initial license applications are generally processed in the order they are received. DISB staff will review applications for accuracy, completeness, and overall compliance with applicable requirements. A ‘Pending-Incomplete’ status will appear for all new applicants until DISB changes the status during the application review process. NOTICE: DISB will NOT perform an in-depth review of incomplete license applications. Anytime DISB notifies an applicant of a deficiency or requests additional information, the application review process is placed on HOLD until the applicant cures the deficiency or provides an adequate response. Applicants should NOT ignore emails received from bankingbureau@dc.gov. If a deficiency is discovered during the preliminary review of an application, DISB will notify the applicant through ‘License Items’ created in NMLS or via email. Accordingly, it is extremely important that all designated contact e-mail addresses are current. DISB will update the application status to “Pending-Deficient” and set an initial due date not to exceed 30 days from the date the License Item was created to correct any deficiencies. If an applicant does not fully respond to requests as detailed in License Items or e-mail deficiency notices, the application may be considered abandoned by the applicant and may be administratively withdrawn by DISB. An applicant seeking licensure following the withdrawal or abandonment of an application may submit a new application. Note: Information uploaded or filed in NMLS will not be viewable to the agency until the filing has been attested to and submitted through NMLS. Mortgage Loan Originator - Sponsorship An applicant for a mortgage loan originator license shall have a Sponsor. See D.C. Code Sec. 26-1103. The term Sponsor is defined as the District of Columbia mortgage lender of Broker with whom the mortgage loan originator is employed or associated. A mortgage loan originator shall not be simultaneously sponsored by more than one licensed District mortgage lender, mortgage broker, or mortgage dual authority licensee. Note: District mortgage loan originator license holders in an “Approved” status are covered under the surety bond filed by their sponsoring mortgage company. ATTENTION: District mortgage loan originator license holders in the “Approved-Inactive” status are NOT authorized to engage in activities as a mortgage loan originator with District consumers. REMINDER: District of Columbia mortgage loan originator license holders in the “Approved-Inactive” status are required to comply with applicable regulatory requirements including but not limited to continuing education requirements. Please be aware that “Approved-Inactive” is a renewal-eligible status in NMLS. Temporary Authority to Operate (TAO) Congress passed the Economic Growth, Regulatory Relief and Consumer Protection Act (S. 2155)​, which included a new provision under the SAFE Act of 2008. This new provision, known as Temporary Authority to Operate (TAO), streamlines the license application process for federally registered mortgage loan originators (MLOs) seeking state licensure, and state-licensed MLOs seeking licensure in another state. TAO allows applicants for the mortgage loan originator license who meet certain criteria the authority to act as mortgage loan originators for a 120- day period while the State reviews their application. Remote Work Click HERE to review Bulletin No. 22-BB-002-11/22/2022, which provides guidance outlining DISB’s position on sponsored mortgage loan originators working from a location other than a District of Columbia licensed location. The Act does not address a minimum or maximum work commute distance requirement for mortgage loan originators. NMLS Call Center The NMLS Call Center provides user support for navigating NMLS, performing essential functions within the system, submitting documentation, using resources available on the NMLS Resource Center, tutorials and much more. Contact the NMLS Call Center at 1-855- NMLS-123 (1-855-665-7123) Monday – Friday from 9:00 AM to 9:00 PM Eastern Time. NOTE: This checklist is designed to help applicants understand application requirements and prepare to submit a complete online license application via NMLS. It can be used electronically or printed. Please note that there are special circumstances that are not covered by the checklist. DISB may require applicants to provide supplemental information and documentation in support of a license application as deemed necessary. This checklist is NOT an application requirement. Do NOT submit this checklist to DISB. CHECKLIST AND INSTRUCTIONS ARE SUBJECT TO CHANGE. ATTENTION: Incomplete or missing information and lack of responsiveness to DISB requests are typical reasons for prolonged application processing or abandoned license applications. REVIEW IMPORTANT REMINDERS! • Review and become familiar with the District of Columbia mortgage lender and broker law, and any other applicable District or Federal statutes, regulations and guidance applicable to mortgage loan originators. • Carefully review and follow the instructions included in the license checklist and related Form (MU4). • It is recommended applicants should begin collecting all the information below and have it readily accessible prior to starting the online application process. • Do NOT submit a license application if ALL information is NOT available to be submitted electronically. • Review and cross-reference information entered in your Form (MU4) along with supporting materials for accuracy, completeness, and consistency before attesting and submitting. • Promptly amend and update information required by your Form (MU4) as changes occur.