12 U.S.C. § 5117: Employment transition of loan originators

The term “application State” means a State in which a registered loan originator or a State-licensed loan originator seeks to be licensed. The term “State-licensed mortgage company” means an entity that is licensed or registered under the law of any State to engage in residential mortgage loan origination and processing activities. an application for a loan originator license denied; or a loan originator license revoked or suspended in any governmental jurisdiction; in any governmental jurisdiction; or under section 5113(c) of this title ; has not been convicted of a misdemeanor or felony that would preclude licensure under the law of the application State; has submitted an application to be a State-licensed loan originator in the application State; and was registered in the Nationwide Mortgage Licensing System and Registry as a loan originator during the 1-year period preceding the date on which the information required under section 5104(a) of this title is submitted. on which the individual withdraws the application to be a State-licensed loan originator in the application State; on which the application State denies, or issues a notice of intent to deny, the application; on which the application State grants a State license; or that is 120 days after the date on which the individual submits the application, if the application is listed on the Nationwide Mortgage Licensing System and Registry as incomplete. meets the requirements of subparagraphs (A), (B), (C), and (D) of subsection (b)(1); is employed by a State-licensed mortgage company in the application State; and was licensed in a State that is not the application State during the 30-day period preceding the date on which the information required under section 5104(a) of this title was submitted in connection with the application submitted to the application State. on which the State-licensed loan originator withdraws the application to be a State-licensed loan originator in the application State; on which the application State denies, or issues a notice of intent to deny, the application; on which the application State grants a State license; or that is 120 days after the date on which the State-licensed loan originator submits the application, if the application is listed on the Nationwide Mortgage Licensing System and Registry as incomplete. Any person employing an individual who is deemed to have temporary authority to act as a loan originator in an application State under this section shall be subject to the requirements of this chapter and to applicable State law to the same extent as if that individual was a State-licensed loan originator licensed by the application State. Any individual who is deemed to have temporary authority to act as a loan originator in an application State under this section and who engages in residential mortgage loan origination activities shall be subject to the requirements of this chapter and to applicable State law to the same extent as if that individual was a State-licensed loan originator licensed by the application State.