Ohio to Adopt Transitional License Rule for Out of State Originators

A ""new Ohio law"":http://codes.ohio.gov/orc/1322.042 to be enacted in March will allow licensed originators from out of state to obtain temporary loan originator licenses while completing requirements to obtain their regular state licenses.

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The law makes Ohio the first state to enact such a law, which reflects ""the industry's desire for the creation of less rigid licensing laws whereby out-of-state licensed MLOs can more quickly begin engaging in the business of mortgage loan originators in other states,"" ""Ballard Spahr"":http://www.ballardspahr.com/ associate Matthew Saunig wrote in a company newsletter.

The temporary license is good for 120 days and may not be renewed.

In addition, some restrictions apply: For instance, the individual must have at least two years of residential mortgage lending experience in the five years immediately preceding the application. Temporary licenses will not be given to applicants who have had an origination license revoked or to applicants with a recent criminal history involving fraud, dishonesty, breach of trust, theft, or money laundering.

The new rule also requires a sponsor in the form of an employer. Sponsors must supervise the applicant's conduct ""in the same manner as is required of its other licensees.""