Under Dodd-Frank, who is responsible for approving or denying mortgage license applications?

Under Dodd-Frank, who is responsible for approving or denying mortgage license applications?

• A. The State
• B. NMLS/R
• C. The Federal Reserve
• D. The Department of Housing and Urban Development

Answer: (A)

The key idea is that licensing decisions for mortgage loan originators are made by the state regulators. The NMLS Registry serves as the centralized system to submit and store license applications and track disclosures, background checks, and education, but it does not approve or deny licenses. Under the SAFE Act, states review applications, verify qualifications, conduct background checks, and determine eligibility, then issue or deny the license accordingly. Federal regulators and HUD do not issue individual MLO licenses; their roles are different and do not replace state licensing authority.

The key idea is that licensing decisions for mortgage loan originators are made by the state regulators. The NMLS Registry serves as the centralized system to submit and store license applications and track disclosures, background checks, and education, but it does not approve or deny licenses. Under the SAFE Act, states review applications, verify qualifications, conduct background checks, and determine eligibility, then issue or deny the license accordingly. Federal regulators and HUD do not issue individual MLO licenses; their roles are different and do not replace state licensing authority.