Mortgage, Mortgage Loan Servicing, and MLO Information and Forms

As of July 1, 2020, residential mortgage loan servicing activities are covered under the Idaho Residential Mortgage Practices Act (Act) through an expanded definition of mortgage lending activities. Companies that service residential mortgage loans, whether first party or third party, regardless of lien position, will now be licensed as an Idaho Mortgage Broker/Lender. Companies that solely service residential mortgage loans will no longer require additional licensure under the Idaho Credit Code or Idaho Collection Agency Act, unless they offer additional non-mortgage products or services covered by those statutes.

Military Member, Veteran, Veteran-Spouse Priority – Sole Proprietor or MLO Applicants only: An individual that is a current military member, veteran, or spouse of a military member or veteran, is entitled to an expedited application review once required verification documentation has been uploaded and notification to the Department of Finance has been received. To qualify, the military member or veteran must have served on active duty for at least 180 consecutive days and if discharged, the discharge must be an honorable discharge or general discharge under honorable conditions. Refer to the new application checklist for required documentation to be provided.

Additionally, if you hold a current, valid and unrestricted active mortgage broker, mortgage lender or mortgage loan originator (MLO) license in another state or jurisdiction, with similar qualification requirements and without any disciplinary, criminal or enforcement actions, you may be eligible for a license while completing any additionally-required Idaho application requirements.

Financial responsibility requirements must be met by all MLOs (MU4) and control persons/key individuals (MU2). Requirements to meet financial responsibility are outlined in Idaho Guidance Statement 2020-01-CFB. An explanation letter will be required that addresses all derogatory accounts with the exception of medical accounts. Any representations made regarding disputes, satisfactions, payment plans (formal or voluntary), settlements, discharges, etc., must be supported by documentation and uploaded to the application record in NMLS.

Company applicants will need to meet the requirements of a financial analysis review under Guidance Statement 2020-04-CFB.

Credit reports and criminal background checks (CBC) are required at initial application for both control persons/key individuals (MU2) and MLOs (MU4). Credit reports and CBCs are also required of all MLOs at time of license renewal and may also be required of control persons/key individuals. Renewal requirement details are listed on the Annual License Renewal Application checklist.

MLO Temporary Authority to Operate (TA): If a complete application package is not provided within 60 days of notification of application deficiencies, the application will be deemed withdrawn and void and any fees paid will be forfeited. Failure to provide a complete application (which includes a complete disclosure section with explanations and supporting documents) within the specified time under Idaho Code 26-31-305 (7) is considered a withdrawal by the applicant. ANY EXISTING TA WILL BE IMMEDIATELY TERMINATED. No extensions will be granted, and TA cannot be reinstated once terminated.

Mortgage Loan Originators (MLO) who have completed application requirements with the exception of a sponsorship and/or being affiliated to an Idaho-licensed location will be issued an “Approved-Inactive” license until all sponsorship or location licensing is complete. No business may be conducted under an “Inactive” status. An Inactive status may be maintained indefinitely if all annual requirements, such as financial responsibility, CE, credit report and criminal background check (CBC) authorizations, have been completed by the renewal deadline.

MLO Pre-license education (PE) requirements consist of: three (3) hours of instruction on ethics; three (3) hours of instruction on federal law and regulations; two (2) hours of instruction on lending standards for non-traditional mortgage products; two (2) hours of Idaho law directly related to the IRMPA and Rules; and ten (10) hours of instruction on elective topics. All instruction must be approved by the NMLSR.

MLO Continuing education (CE) annual requirements consist of: three (3) hours of instruction on federal law and regulation; two (2) hours of instruction on ethics; two (2) hours of instruction on lending standards for non-traditional mortgage products; and one (1) hour instruction of Idaho law related to the IRMPA and Rules. All instruction must be approved by NMLS.

Paper licenses are not issued for mortgage company or individual licensees. Approved licenses may be verified on the Department’s website or on the NMLS Consumer Access website.

Communication with Idaho licensees and pending applicants is done primarily through email. It is the licensee’s responsibility to keep application information, such as email addresses, current. This allows communication from the Department pertaining to the license, renewals, training, etc. Many emails are sent in “bulk” so if an email address blocks bulk email it is recommended that the setting be changed or that the Department domain be identified as an approved sender.

The NMLS Call Center is available from 9:00am-9:00pm EST at (855) NMLS-123 or (855) 665-7123. Contact the Call Center for technical and system navigation questions and support. Contact state regulators for state-specific policies and information. Remember—NMLS is an information conduit and system of record for information storage. The NMLS does not review license information, does not make decisions on licenses or license requirements and does not issue a “national” license.