Q:  I just finished renewing my loan officer license and it printed with next year's expiration date, but now my education hours are showing as zero (0)...what do I need to do?

A: At this time nothing.  Since you have just finished renewing your license you utilized the education credits you had.  The system is now showing you your education credits for the next year's renewal period.

Q:  I am sole proprietor, licensed as a Mortgage Broker. Will I also need a Loan Officer's license?

A: Yes you will. In order for a sole proprietor to be licensed as a Mortgage Broker, he/she must also be a licensed Loan Officer.  Additionally, since you will also be the Managing Principal of the Company, you will be required to have at least three years of experience in the mortgage lending business.

Q:  I am a "freelance" Loan Officer who solicits loans for (but is not an employee of) one or more lenders. Will I need a Mortgage Broker and/or a Loan Officer License?

A: Yes, you will need a Loan Officer license and need to be employed with a licensed lender or broker. Since you are self-employed, you are not an "employee" under the Act and you may legally solicit applications only if you are licensed as a sole proprietor Mortgage Broker.  You must also obtain a Loan Officer license. 

Q:  I've never been licensed as a Loan Officer. How do I get a Loan Officer License?

A: The "Application for Loan Officer License" on this web site and the instructions tell you what information you will need to submit in order to obtain a license. Generally, you will need to complete a fundamentals of mortgage lending course from one of the approved providers (also listed on this site), pass a test, file an application, including authorization for this office to obtain a credit report and conduct a criminal background check, and pay the initial application filing fee of $67.50, plus the background check fees of $46 or a total of $113.50. The OCOB will process your applicaton and, if approved, you will be granted a license.

Q:  My Loan Officer license has expired. What are my options?

A: If you are within the ninety days following the expiration of your license and you have completed your eight hours of continuing education, one option is to pay a $50 re-instatement fee and the $67.50 annual license fee.

Q:  My Loan Officer license has expired and the late renewal period is over.  What do I need to do?

A:  In this situation you must reapply. Follow the steps below to apply for a new license:

I. Retake an approved North Carolina Fundamentals Course if your current course will be more than three (3) years old when your complete application is submitted to the North Carolina Commissioner of Banks.

II. Retake and pass the North Carolina Mortgage Loan Officer test if your current test will be more than one (1) year old when your complete application is submitted to the North Carolina Commissioner of Banks.

III.  Get fingerprinted if your current fingerprint card will be more than one (1) year old when your complete application is submitted to the North Carolina Commissioner of Banks.

IV. Submit a new loan officer application (MU4 Form), your completed fingerprint card, an Authority For Release Form, course completion certificate, PSI examination results, and a certified check or money order in the amount of One Hundred and Thirteen Dollars and Fifty cents ($113.50).

Q:  Who must have a Loan Officer license?

A: The Loan Officer licensing process, including the application, education and examination components, is designed to ensure that only honest, knowledgeable employees have contact with consumers concerning specific terms of actual or potential loans. A person must therefore be licensed as a loan officer if by any oral or written means he or she communicates to a consumer information regarding a pending or potential application. Such communications include, but are not limited to: (i) explanations or recommendations regarding specific terms, conditions or benefits of any loan available from or through his or her employer, whether or not the consumer has made or later makes an application, (ii) explanations of any term or aspect of any disclosure or agreement given at or after an application is received, (iii) offers to make or solicits  a loan on terms or conditions different from those for which the consumer applied. Persons whose communications with consumers are solely for the purpose of obtaining or collecting information needed to complete or process an application need not be licensed. Marketing or promotional communications limited to general information regarding the licensee or its loan products are also not covered.

Q:  It's time for me to renew my Loan Officer license and I have fewer than the minimum required hours of continuing education. What can I do?

A: All licensed loan officers must complete annually all required continuing education hours by December 31st.  If by December 31st you have not completed your required eight hours, you will not be eligible to renew your license. After December 31st in order to renew your license, you must obtain eight hours of mortgage lending education, sign and send the license renewal form, and pay the annual renewal fee of $67.50, plus a late re-instatement fee of $50 or a total of $117.50. If your license is not re-instated prior to March 31st, it can not be re-instated or renewed.  

Q:  Where can I find out about the approved continuing education providers?

A: A list of approved education providers is available on the NCCOB web site.

Q:  As a licensed Loan Officer, will I have to take continuing education classes in order to keep my license?

A: Yes you will. Each licensed Loan Officer must complete eight (8) hours of continuing education each year, except for the year he/she is initially licensed under the initial licensing procedure. In other words, an individual receiving an initially issued Loan Officer license set to expire on December 31st, 2008 will have to satisfy the continuing education requirements for renewal of his/her license on/before January 1, 2009. A Loan Officer license is valid from the date of issuance until December 31st. Before January 1st of each year, a Loan Officer must file to renew the license for the upcoming fiscal year.

Q:  I work for a Mortgage Lender. I am an "underwriter" who analyzes the application and other credit-related data submitted by the broker and the borrower. I then approve or deny the loan. I never speak to a borrower - just the broker who sends us loans to fund. Do I have to get a Loan Officer License?

A: The fact that the communication with the consumer occurs through an intermediary does not necessarily exempt you from the licensure requirement. However, if your communication is limited to advising the broker whether your employer will make or purchase the loan as submitted by the broker, you will not need a license.

 Q:  Must a Managing Principal or Branch Manager have a Loan Officer license?

A: A Managing Principal will need a Loan Officer license if he/she has customer contact. A Branch Manager who effectively manages his/her branch will of necessity have at least some periodic communications with consumers and therefore must be licensed as a Loan Officer.  Additionally, a Managing Principal who anticipates managing a branch will have to be licensed as a Loan Officer.

Q:  How long is a license valid?

A: A license is valid from date of issue through the next December 31st. License fees will not be prorated for licenses issued or renewed after January.

Q:  My Company uses self-employed sales representatives to call on Real Estate Agents. Our representative leaves loan application forms and information regarding our loans. A potential borrower never sees one of our representatives. They call us or contact us via the Internet to file their loan application. Do these sales representatives need a Loan Officer license?

A: No. It appears that these sales representatives have no contact with a borrower and do not explain the terms of or otherwise solicit the loan. Therefore they would not need to be licensed. The Real Estate Agent should refrain from assisting the buyer or borrower in completing the application or they may be engaging in activities for which they need a license. Likewise without a Mortgage Broker license the Realtor should accept no fee other than his/her real estate sales commission or fee. If the Real Estate Agent receives any type of referral fee, such agent should be licensed under the Act and should perform sufficient work in connection with mortgage transaction to warrant receipt of a fee.

 Revised 12/14/2007