An LO License is only active if BOTH the License Status and the Sponsorship Status are Active Statuses. Therefore, it’s important when verifying an LO’s license status to check both statuses and keep record of this in your employee files before allowing an LO to conduct business in a State. It is also important to have proper NMLS email notifications set up so that you are receiving notifications if either status changes. Loan Origination Systems should also be updated daily for any changes.
Active License Statuses:
- Approved
- Approved-Deficient
- Approved-Conditional
- Temporary Authority (Pending Deficient, Pending Review, or Pre-Approved)
Active Sponsorship Statuses:
- Accepted (Required for Approved Licenses Statuses)
- Requested or Accepted (Acceptable for Temporary Authority), possibly Deficient
If either the License Status or the Sponsorship Status are NOT active license statuses, then the License is NOT Active.