North Carolina Mortgage Loan Originator License

This license is required of any individual who, in exchange for compensation as an employee of a Mortgage Lender or Mortgage Broker, accepts or offers to accept applications for mortgage loans on residential real property in North Carolina.

Who Is Required to Have This License? North Carolina General Statute (N.C.G.S.) § 53-244.030(21) defines a Mortgage Loan Originator as referenced below: "Mortgage loan originator" means: An individual who for compensation or gain or in the expectation of compensation or gain, whether through contact by telephone, electronic means, mail, or in person with prospective borrowers: • Takes a residential mortgage loan application, • Accepts or offers to accept applications for mortgage loans, • Solicits or offers to solicit applications for mortgage loans, • Offers or negotiates the terms or conditions of a mortgage loan, or • Issues mortgage loan commitments or interest rate guarantee agreements to prospective borrowers. The Secure and Fair Enforcement Mortgage Licensing Act defines a “residential mortgage loan or mortgage loan” to mean any loan made or represented to be made to a natural person or persons primarily for personal, family, or household use that is secured by a mortgage, deed of trust, or other equivalent consensual security interest on a dwelling located within this State or residential real estate upon which is constructed or intended to be constructed a dwelling. NOTE: Most applicants follow the path to licensure though the standard Mortgage Loan Originator License application as it is both the application for the Mortgage Loan Originator license as well as the path to apply for Temporary Authority to Operate. Do not apply for the NC Transitional MLO license without being certain it is the right path for you. Contact our staff with any questions if you need clarification between the license types. The transitional license is not the same as Temporary Authority to Operate. Applications for Temporary Authority to Operate go through the regular MLO application process. To apply as a Mortgage Loan Originator, with or without Temporary Authority to Operate, please use the standard Mortgage Loan Originator checklist and select application for licensure for Mortgage Loan Originator rather than the transitional. Typically only non-producing MLOs who have not completed the prelicensing education or testing AND intend to manage processors or underwriters for a Mortgage Origination Support Registrant business (not brokers or lenders) apply for the transitional license type. Please contact our office if clarification is required. Fees are non-refundable. Who does not need this License? • Federally registered mortgage loan originators are exempt and therefore, are not eligible for licensure in the State of North Carolina. • NOTE: Loan Originators who have an active federal registration may not obtain (or retain) a North Carolina MLO license in an approved-inactive status. • NOTE: Loan originators whose federal registrations are going inactive within 30 days may apply for licensure in the State of North Carolina; however, the MLO state license will not be approved until the federal registration is in inactive status. • An individual engaged solely as a loan processor or underwriter (NOTE: contract processing and underwriting companies are required to register; refer to the new application checklist for a Mortgage Origination Support Registration for more information); • A person or entity that only performs real estate brokerage activities and is licensed or registered as such in accordance with State law, unless the person or entity is compensated by a mortgage lender, mortgage broker, other mortgage loan originator, or by their agents; • A person or entity solely involved in extensions of credit or sale of time share instruments as that term is defined in G.S. 93A-41(9a); • An individual who only informs a prospective borrower of the availability of persons engaged in the mortgage business, does not take or assist in the completion of a loan application, and does not discuss specific terms or conditions of a mortgage loan. • The taking of basic pre-application information for facilitating a residential mortgage loan transaction, such as the name and contact information of the prospective borrower, the prospective borrower's own assessment of creditworthiness, desired loan types, and resources to make a down payment, but not including social security number, credit, employment history, or specific rates of a desired mortgage loan. • An individual who is a salesperson for a licensed manufactured housing retailer that performs the purely administrative and clerical tasks of physically handling or transmitting to a licensed mortgage loan originator an application and other forms completed by the prospective borrower. A salesperson may, upon written request of a mortgage loan originator and after a prospective borrower completes an application, pull and transmit a credit report with the application. What are the pre-qualifications for licensure? Applicants must: • Be at least 18 years of age. • Have satisfactorily completed, within the three years immediately preceding the date of application, 24 hours of NMLS-approved pre-licensure education (PE) courses which must include 4 hours of North Carolina laws and regulations under G.S. 53-244.070 (ALERT! THIS REQUIREMENT IS CHANGING AS OF 10/1/2025. PER THE NC LEGISLATIVE UPDATE OF THE STATUTE: The 4-hour NC PE must be completed within 3 years of new or subsequent license application. In addition, the 20-hour PE must be completed within 3 years of new or subsequent license application; however, if an applicant holds a valid mortgage loan originator license in any other state or territory the applicant will receive credit for the education completed under G.S. 53-244.070(e) if the individual has completed all required continuing education for the preceding year.) • Pursuant to N.C.G.S. § 53-244.050(b)(1b), education is valid for three (3) years preceding date of application. Once licensed, continuing education is required pursuant to N.C.G.S. § 53-244.102. If the license terminates (outside of late renewal), a new application for licensure must be made and will be reviewed for compliance with pre-licensure education requirements. • Pass the National Test with Uniform State Content (the test must be current; not expired). • License Cost: $125 plus NMLS processing fees and cost of credit report and background check. Fees are non-refundable. What are the disqualifications for licensure? If an applicant satisfies the requirements of N.C.G.S. § 53-244.050, the Commissioner shall issue a license unless the Commissioner finds any of the following: • The applicant’s mortgage loan originator license was revoked in a governmental jurisdiction, unless formally vacated. • The applicant has been convicted of or plead guilty or nolo contendere to a felony in a domestic, foreign, or military court • During the seven-year period preceding the date of the application for licensing and registration; or • At any time preceding the date of application, if the felony involved an act of fraud, dishonesty, a breach of trust, or money laundering. • The applicant has been convicted of or plead guilty or nolo contendere to any charge in a domestic, foreign, or military court, within the past five years, or a misdemeanor involving moral turpitude or any fraud, false statement or omission, any theft or wrongful taking of property, bribery, perjury, forgery, counterfeiting, extortion, or conspiracy to commit any of these offenses, or involving any financial service or financial service-related business. • The applicant has demonstrated a lack of financial responsibility, character, or general fitness such as to fail to command the confidence of the community and to warrant a determination that the mortgage loan originator will operate honestly, fairly, and efficiently within the purposes of this Article. For purposes of this subdivision, a person shows a lack of financial responsibility when the person has shown a disregard in the management of the person's own financial affairs. Evidence that a person has not shown financial responsibility may include: • Current outstanding judgments, except judgments resulting solely from medical expenses • Current outstanding tax liens or other government liens and filings; • Foreclosures within the past three years; or • A pattern of serious delinquent accounts within the past three years. Additional Information: A mortgage loan originator shall not be employed simultaneously by more than one mortgage lender, mortgage broker, or mortgage origination support registrant under Article 19B of Chapter 53 of the North Carolina General Statutes. N.C.G.S. § 53-244.100(b). If the applicant is not currently employed as a mortgage loan originator, the license will be issued as “Approved-Inactive” until sponsorship by a licensed mortgage company is requested. The Approved-Inactive status indicates that the individual meets all statutory licensing requirements but cannot originate until sponsorship has been submitted and approved through the NMLS. Applications not completed within 30 days of an initial deficiency notification will be deemed withdrawn by applicant and placed in a Withdrawn-Application Abandoned Status unless under Temporary Authority to Operate which provides 120 days for education and testing completion (all other license items for Temporary Authority will have a 30-day due date except for background check items which must be addressed by the applicant by the 9th business day from the date of their application). Temporary Authority to Operate is part of an addition to the federal SAFE Act by the passage of the Economic Growth, Regulatory Relief and Consumer Protection Act (12 USC § 5117). The provision streamlines the license application process for federally registered mortgage loan originators (MLOs) seeking state licensure and state-licensed MLOs seeking licensure in another state. It allows qualified MLOs who are changing employment temporary authority to originate loans while completing certain state-specific requirements. Temporary Authority to Operate took effect November 24, 2019. For additional information on the MLO qualifications and other specifications of the provision, please visit the following link to the Nationwide Multistate Licensing System & Registry Resource Center: https://nationwidelicensingsystem.org/slr/common/Pages/Temporary-Authority-to-Operate.aspx. The NC SAFE Act refers to Mortgage Loan Originators as employees which is defined in the Act as an individual who has an employment relationship and who is treated as a common law employee for purposes of compliance with federal income tax laws and whose income is reported on IRS Form W-2. Refer to N.C.G.S. §§ 53-244.030(10), 53-244.040(a), and 53-244.100. Frequently-asked questions can be viewed on our website: https://nccob.nc.gov/financial-institutions/mortgage. North Carolina does issue paper licenses for this license type; they can be printed by the licensee the business day following license approval at: https://www.nccob.gov/online/Login.aspx. The requirements for the display of licenses is in North Carolina General Statute§ 53-244.106.