What happens if an NMLS ID is revoked or a license/registration expires?

The mortgagee must ensure that it and its employees comply with the Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (SAFE Act), including the licensing and registration of its employees in the NMLS.

The mortgagee must have an active state license, registration, or equivalent approval to operate its business in the jurisdiction where the home office is located.

The mortgagee must ensure that each branch office has all licenses, registrations, or approvals required for the types of mortgagee functions or activities performed for the jurisdiction in which that office is located.

A mortgagee that has been refused a state license or been sanctioned by any state in which it will originate FHA mortgages must disclose the circumstances of the refusal or sanction and the resolution to FHA.

The mortgagee must submit a Notice of Material Event to FHA of any changes to its license(s) using the Lender Electronic Assessment Portal (LEAP) within 10 business days of the change. In the event of a lending license surrender or revocation, the mortgagee must notify FHA which license(s) has been surrendered and provide an explanation of each action.

The mortgagee must ensure that its corporate officers, employees, and affiliates conducting FHA business on their behalf have all state and federal licenses and registrations required for the mortgagee functions or activities that will be performed.

The Mortgagee Review Board (MRB) is authorized to impose civil money penalties and take administrative action against any FHA-approved mortgagee that does not comply with HUD and FHA statutory, regulatory, and any Handbook requirements.

For more information about submitting a Notice of Material Event using LEAP refer to the LEAP User Manual located at: http://www.hud.gov/lenders under the LEAP Information link in the Approvals & Renewals section.

Handbook 4000.1 I.A.3.c.iv.(B)(3)(b)(iii); I.A.3.c.vi; V.E.4  is available at http://portal.hud.gov/hudportal/HUD?src=/program_offices/administration/hudclips/handbooks/hsgh.