MLO-NMLS Issue

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Question:

A loan officer signed the initial 1003 application on Jan. 5, 2022. At that time he did not have an active license. When he signed the final 1003 he was back in good standings, but he was not authorized from Jan 1-Jan 5, 2022. Is this going to cause any type of issue with this loan?

Answer:

The real question is why the bank allowed a MLO that failed to reregister timely even touch a loan during that time? Is it going to cause you problems? Hard to say. If you sold the loan into the secondary market, it might be put back to you at some point in time. Otherwise, it might be caught in an audit or exam and then you will have to answer the first question above.