The NMLS Policy Guidebook was recently updated to clarify changes on Temporary Authority to Operate. Specifically, the Guidebook added the “Temporary Authority to Operate” definition to the glossary, added Temporary Authority to Operate License Statuses to the “License Status Definition” list, and added a new section, titled “Non-Disclosable Events and Regulatory Actions.”
The Temporary Authority to Operate Consumer Access section was updated to explain that Consumer Access will update the status of a MLO to “Authorized to Represent” once sponsorship has been requested or accepted. The definition of “Temporary Authority to Operate” was added to the glossary section to explain that temporary authority to act as a loan originator permits certain MLOs to originate loans while completing state-specific requirements for licensure.
The update adds four temporary authority to operate license statuses to the “License Status Definition” list. Generally, the statuses are as follows:
- Pending-Deficient (Temporary Authority Eligible) indicates that the application is pending a criminal background check or request for sponsorship;
- Pending-Deficient (Temporary Authority) indicates that the application is pending testing and education or a license item;
- Pending Review (Temporary Authority) indicates that the application is waiting for regulatory review and disposition; and
- Pre-Approved (Temporary Authority) indicates that the applicant has met all other requirements, and the application is approved, but the testing and education requirements are incomplete.
The new section, “Non-Disclosable Events and Regulatory Actions,” explains that when regulatory actions are posted in NMLS with the privacy level of “All Regulators,” and noted as a non-disclosable action, non-posting state regulators cannot require the action to be disclosed.