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  Issue XXX  April 19, 2011 
In This Issue
Maryland Is Now Using NMLS Sponsorship Functionality
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 REMINDER!  Mortgage Lenders Please Submit Sponsorship Requests on NMLS on Behalf of  Licensed Mortgage Loan Originators April 1st - May 15th

 

(Maryland Amendment Fee Waived During April 1 - May 15, but the NMLS Processing Fee Will Apply) 

 

Sponsorship is the authorization for a mortgage loan originator ("MLO") to conduct business under a specific license on behalf of a state licensed/registered company. Only an employer with a mortgage lender license/registration in Maryland can initiate the sponsorship of an individual's license in Maryland.

 

As Maryland transitioned to the Nationwide Mortgage Licensing System ("NMLS"), MLOs initially completed sponsorship externally from the NMLS (on the Maryland website) as all sponsoring entities had not yet transitioned. However, with the transition completed, Maryland now has the ability to process sponsorship requests via the NMLS.  Unfortunately, NMLS will not allow sponsorship data on the Maryland system, which is external to the NMLS, to be transferred by the Commissioner.  Therefore, between April 1st and May 15th ALL employers of licensed mortgage loan originators are required to submit sponsorship requests via NMLS so that the MLO record is complete AND correct. 

 

If a sponsorship request has not been submitted via NMLS, the MLO should contact his/her employer and encourage that employer to create a relationship (with the MLO) and submit the sponsorship request.

 

Note: NMLS requires an employment relationship be created first, and then the sponsorship request can be submitted.  The employment relationship date must match the starting date employment on the MLO's employment history and all locations where the MLO is authorized to work must be identified.

 

Quick guides titled "Create Relationship" and "Create Sponsorship" on the NMLS Resource Center will help guide your company through the sponsorship process.

   

What happened before April 1, 2011?

During Maryland's transition to NMLS, the Office of the Commissioner of Financial Regulation ("Agency") required sponsorship to be completed via the Maryland website and outside the NMLS. However, prior to April 1, 2011, some employers had submitted sponsorship requests for their MLOs both via the Maryland website and via NMLS.

 

So that the MLO's record is complete and correct via NMLS, the Office of the Commissioner of Financial Regulation either approved or rejected sponsorship requests submitted via NMLS. NMLS submitted sponsorship requests that matched information the Agency had outside NMLS were accepted and all others were rejected. If the NMLS sponsorship request was rejected (or never requested), mortgage lender licensees/registrants should submit sponsorship requests for their Maryland MLO licensees between April 1 and May 15, 2011.

 

Note: All mortgage lender licensee/registrants should confirm that sponsorship requests have been submitted for all their Maryland licensed MLOs.

 

What happens between April 1 and May 15?

April 1 - May 15 is a "no penalty" sponsorship maintenance/correction period. The Agency has waived its license amendment fee (note: the NMLS processing fee has not been waived) and certain other penalties. However, mortgage lender licensees/registrants must create a relationship with their MLOs AND submit sponsorship requests for their Maryland licensed MLOs via NMLS.

 

What happens after May 15, 2011?

After May 15, 2011, any MLO licensee who has not had a sponsorship request submitted via NMLS will be placed in an "approved-inactive" status. The MLO does not have the authority to originate while in the "approved-inactive" license status.

 

Additionally, sponsorship requests after May 15, 2011 may be subject to Maryland license amendment fees, NMLS processing fees and/or penalties.   

   

More Information

For assistance with the submission of a sponsorship request view the NMLS quick guide on the Resource Center or call the NMLS Call Center at 240-386-4444.  For specific questions pertaining to Maryland's implementation of the NMLS sponsorship functionality, you may contact Keisha Whitehall Wolfe, Director of Licensing at 410-230-6362 or via email at kwhitehallwolfe@dllr.state.md.us.

Department of Labor, Licensing and Regulation, Office of the Commissioner of Financial Regulation, 500 N. Calvert Street, Suite 402 - Baltimore, Maryland 21202-3651 - (410) 230-6155
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