HousingWireHousingWire
Let’s be honest, renewing your NMLS license isn’t exactly the most thrilling part of being a mortgage loan officer. But if you miss your renewal deadline, you’ll find yourself on the sidelines and unable to help your clients. When you’re busy, taking continuing education (CE) classes can be the farthest thing from your mind – until the deadline creeps up on you.
Each year, thousands of loan officers rush to meet their state’s NMLS requirements, unsure of what to do, how to pay the required fees or which CE courses they need to take. We’ll walk through every step of your MLO license renewal to make sure you’re not one of those loan officers scrambling to meet the deadline.
Why renewing your MLO license matters
Your NMLS license renewal isn’t just an annual to-do item to cross off your list in order to keep working – it’s much more than that. It’s what gives you the ability to legally originate loans in your state. Without it, you aren’t able to work with clients or collect a commission. Every state requires mortgage loan officers to complete annual NMLS renewal requirements which includes completing any required continuing education and paying your NMLS renewal fees.
If you fail to meet the NMLS renewal deadline, it could result in late fees or cause your license to lapse or even be suspended. Not only will the paperwork become a bigger headache, your income and reputation could suffer as well. Renewing your MLO license on time ensures your license remains in good standing and your clients continue to receive the service they’ve come to know and love.
When to renew your MLO license
The federal NMLS renewal period is the same every year. It opens November 1 and closes December 31 each year. During this time, all licensed mortgage loan officers must renew their NMLS license by submitting the required forms, pay the NMLS renewal fees and ensure the required CE has been completed and reported accurately.
It’s important to note that while the renewal deadline is December 31, waiting too long to complete the requirements can put your license at risk. Some states may have earlier cutoffs to allow time for processing, especially when it comes to your CE requirements. On that note, it’s important to know that your CE needs to be completed before you submit your NMLS renewal to prevent further delays.
Pro TIp
You should aim to complete your MLO license renewal by early December to avoid the stress of meeting the deadline and to protect your business.
Step-by-step: How to renew your MLO license
Now that we’ve discussed why it’s so important to renew your license on time, it’s time to go through the steps it takes to actually complete your NMLS license renewal. Let’s get started.
Step 1: Prepare for your renewal
It’s important to start with being organized – or as I say, having your ducks in a row. Make sure you have your log-in credentials for NMLS and a list of the states you’re licensed in with the corresponding license numbers. This is also a good time to double-check your CE provider’s reporting timelines so you don’t run into any surprises when you submit your renewal application.
Step 2: Update your NMLS record
Now that you have all of your ducks in a row, it’s time to update your NMLS license record. There are two steps to take here. First, you’ll navigate to the “User Profile” section and update your personal information including your phone number and email address. Once finished, you’ll click confirm the changes to save them. Second, you’ll navigate to the “Filing” section to update any changes to your company sponsorship and update your employment information (MU4 form).
It is required to keep your NMLS record accurate at all times, but it also helps avoid any delays in the renewal process.
Step 3: Review your state deadlines, requirements and costs
While the federal NMLS renewal cutoff is December 31 each year, each state is responsible for setting its own NMLS renewal deadlines and fees. Some states also require additional documentation, so be sure to check with your state regulator to confirm your NMLS renewal requirements. This includes knowing whether or not you need to submit fingerprints or complete a background check.
Step 4: Complete your CE requirements
In order to renew your MLO license, you have to complete the state’s CE requirements. All states require eight hours of NMLS approved continuing education. Some states require additional hours that pertain specifically to state legal or regulatory requirements. Remember, your courses have to be completed before you can submit your NMLS renewal.
Here’s a breakdown of the requirements for each state:
| State | Total CE Hours | State-Specific Hours |
|---|---|---|
| Alabama | 8 | 0 |
| Alaska | 8 | 0 |
| Arizona | 8 | 1 |
| Arkansas | 8 | 0 |
| California (DFPI) | 8 | 1 |
| California (DRE) | 8 | 1 |
| Colorado | 8 | 0 |
| Connecticut | 8 | 1 |
| Delaware | 8 | 0 |
| District of Columbia | 8 | 0 |
| Florida | 8 | 1 |
| Georgia | 8 | 1 |
| Hawaii | 8 | 1 |
| Idaho | 8 | 1 |
| Illinois | 8 | 1 |
| Indiana | 8 | 1 |
| Iowa | 8 | 1 |
| Kansas | 8 | 1 |
| Kentucky | 8 | 1 |
| Louisiana | 8 | 1 |
| Maine | 8 | 1 |
| Maryland | 8 | 1 |
| Massachusetts | 8 | 1 |
| Michigan | 8 | 1 |
| Minnesota | 8 | 1 |
| Mississippi | 8 | 1 |
| Missouri | 8 | 1 |
| Montana | 8 | 1 |
| Nebraska | 8 | 1 |
| Nevada | 8 | 1 |
| New Hampshire | 8 | 1 |
| New Jersey | 12 | 4 |
| New Mexico | 8 | 1 |
| New York | 11 | 3 |
| North Carolina | 8 | 1 |
| North Dakota | 8 | 1 |
| Ohio | 8 | 1 |
| Oklahoma | 8 | 1 |
| Oregon | 10 | 2 |
| Pennsylvania | 8 | 1 |
| Rhode Island | 8 | 1 |
| South Carolina (BFI) | 8 | 1 |
| South Dakota | 8 | 0 |
| Tennessee | 8 | 1 |
| Texas (OCCC) | 8 | 1 |
| Texas (SML) | 8 | 1 |
| Utah (DFI) | 8 | 1 |
| Utah (DRE) | 8 | 1 |
| Vermont | 8 | 1 |
| Virginia | 8 | 1 |
| Washington | 9 | 1 |
| West Virginia | 8 | 1 |
| Wisconsin | 8 | 1 |
| Wyoming | 8 | 0 |
Do you need help staying on top of your CE requirements? Then you need to check out MLO Force. They are a trusted educational provider of NMLS approved CE courses. Their courses are designed for busy loan officers like yourself, with self-paced options with state specific content built in. MLO Force makes it fun and easy to complete your required coursework on time with their video training that is both educational and engaging. If you’re looking for an affordable CE option that is also entertaining, MLO Force has you covered.
Visit MLO Force
Step 5: Request your renewal and pay the fees
Now that you have completed your CE requirements, it’s time to log into NMLS to complete your renewal. Once you’re logged in, go to the “Renewals” section. You will see two renewal workflows to choose from to renew your license. One is for renewing as an individual and one is for renewing through the sponsoring company.
- Attest for company workflow: If your sponsoring company is paying the renewal, you will complete the attestation form and inform your sponsor they can now complete the process on their end.
- Attest and pay workflow: If you are completing the renewal as an individual, you will complete the attestation form and pay the required renewal fee in the portal.
If you choose not to renew your license, there is a workflow for that as well. You’ll see the “Do Not Renew Workflow” and follow the steps to recall your license.
Step 6: Wait for your license record to update
Congratulations, you’ve now submitted your NMLS license renewal. Now, you wait for the state to process your license renewal, which can take up to 30 days.
Tips for a smooth NMLS renewal process
If you’ve followed the steps above, you’re well on your way to having a smooth renewal process. In case you need a little extra guidance, here are a few additional tips to help make your NMLS license renewal even easier and avoid any last-minute stress.
- Don’t wait until December: The NMLS system gets flooded near the deadline, which can slow down processing time. Aim to complete your MLO CE and submit your renewal by early December at the latest.
- Track CE completion and reporting: Just because you finished your CE course doesn’t mean it’s been reported. Log in to NMLS and verify that your provider submitted your hours before trying to renew.
- Use the NMLS checklist tool: The NMLS website offers tailored state checklists that break down what’s required for each license. Bookmark your state’s page to avoid guessing.
- Keep your NMLS profile current year-round: Updating your record before renewal is required—but keeping it accurate throughout the year will make the process quicker when renewal season arrives.
- Set calendar reminders for next year: Add recurring reminders each fall for CE deadlines, NMLS renewal fees and submission dates. That way, you’re not starting from scratch every November.
What happens if you miss the renewal deadline
Trust me, you don’t want to miss the NMLS renewal deadline, but if you do – you won’t be the first person. If you miss the deadline, your license will be updated to “Terminated – Failed to Renew” or it will be placed on inactive status by your state regulator. This means, you won’t be able to legally originate loans until you get your license reinstated.
The good news is that most states participate in the NMLS reinstatement period, which runs from January 1 to February 28 each year. During this time, you can still renew your license, but you’ll likely face the following:
- Late fees
- Providing additional paperwork and/or documentation
- Delays in cleared loans closing timely
- Losing additional business during your downtime
Once you complete the necessary CE and renewal requirements, it could take a few weeks for NMLS to review and approve your license. It’s always best to be proactive and renew during the renewal period to avoid any delays or additional costs.
MLO license renewal: FAQs
What is the NMLS, and what is its function in the MLO process?
When you become a mortgage loan officer, you will repeatedly hear about the NMLS, also known as the Nationwide Multistate Licensing System. The NMLS is the governing agency of MLOs and ensures all MLOs are well-qualified to handle transactions. It will be your main website portal for all things while getting and renewing your license.
Why is the NMLS important to your business?
As a new or aspiring MLO, your NMLS license number is absolutely critical for qualifying to handle lending transactions, and no one will hire you without one. Your NMLS number functions similarly to a Social Security number, solidifying your status as an MLO to the government and allowing it to track your professional activity.
What is the average mortgage loan officer salary?
Mortgage loan officers generally make a salary-based income with commission. However, some make solely commission or solely salary. Commonly, MLOs earn 1% to 2% commission based on the loan amount and then split that commission with their broker. Work with your employer sponsor to determine a wage you feel comfortable with.
They often have flexible work hours and can work independently or with a bank or mortgage broker. According to ZipRecruiter, the national average salary for mortgage loan officers is about $80,000, and for mortgage brokers it’s about $87,000. Obviously, salaries can vary based on your location and work ethic. Mortgage officers who generate leads consistently will close more deals.
The full picture: MLO license renewal
As a mortgage loan officer, compliance is a part of everyday life. Renewing your license shouldn’t be any different. To stay competitive, it’s important to complete your MLO CE and NMLS renewal requirements in a timely manner. Be sure to pay attention to your state specific requirements and deadlines to ensure you meet the deadlines and pay the required fees.
Use this guide as your roadmap as you go through each step of the NMLS license renewal process. This will help you avoid penalties and late fees while keeping your license in good standing. After all, this is your livelihood, you want to be sure to protect it. Completing your MLO license renewal lets you head into the new year ready to help your clients and close more deals – free and clear of any worries.
