A licensed MLO leaves their employer and joins a new mortgage company in the same state. The MLO's individual state license is still active, but they have not yet updated their NMLS record to reflect the new employer association. Which of the following accurately describes the MLO's ability to originate loans at the new company?

Question

Accepted Answer

The MLO may be eligible for temporary authority to originate at the new company under intrastate transitional provisions while the new employer sponsorship is being processed in NMLS While an individual state MLO license does follow the person rather than the employer, the MLO must be properly associated with and sponsored by the new employer in NMLS before originating loans. The intrastate transitional licensing provisions allow the MLO to originate at the new company while this NMLS employer association update is being processed, preventing a gap in their ability to serve consumers. "The MLO may be eligible for temporary authority to o..." is incorrect because even though the license is portable, NMLS employer association is required before the MLO can lawfully originate under the new employer — the transitional provision bridges this gap. "The MLO is prohibited from any origination activity..." is incorrect because changing employers does not require surrendering the state license; it requires updating the NMLS employment record. "The MLO may immediately originate loans because thei..." is incorrect because there is no mandatory 30-day blackout period; the transitional provision exists specifically to allow continued activity during the transition.

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