License Status Definitions
The chart below provides the following for each license status currently available in NMLS: (i) definition and (ii) any action(s) that may be required by the licensee / applicant when their license record is assigned the status.
Note: Some statuses may have one or more uses or definition variations, so it is important
to consult with the jurisdiction that set the license status if you have a specific
question.
| License Status | Definition | Action(s) Required by Licensee/Applicant under this status | Status Displayed on Consumer Access | Adverse Status1 |
|---|---|---|---|---|
| Transition Requested | Status assigned upon submission of a transition request. | Respond to any license items (requirements or deficiencies) placed by the regulator. | Not Displayed | N |
| Transition Cancelled | Status assigned upon submission of a filing request cancellation of a transition request. | None | Not Displayed | N |
| Transition Rejected | Status assigned when a regulator decides not to approve a transition request. Also used by regulators when the incorrect license type is identified for transition. | None | Not Displayed | N |
| Pending - Incomplete | Status assigned upon submission of a new license request. | Respond to any license items (requirements or deficiencies) placed by the regulator. | Not Displayed | N |
| Pending - Review | Status assigned once the regulator has received external documents per checklist, completes a preliminary review of new license request and decides to accept the filing for processing. Once the request is placed in this status, the regulator review clocks start. | Respond to any license items (requirements or deficiencies) placed by the regulator. | Not Displayed | N |
| Pending - Review (Temporary Authority) | Temporary Authority to Operate status assigned when Temporary Authority is Active, testing & education requirements have been met, and no regulator-set license items exist. | None | Temporary Authority | N |
| Pending - Deficient | Status assigned when regulator has determined documents or information are incomplete or are missing from the license request. | Respond to any license items (requirements or deficiencies) placed by the regulator. | Not Displayed | N |
| Pending - Deficient (Temporary Authority Eligible) | Temporary Authority to Operate status assigned before Temporary Authority is Active while awaiting CBC results, CHRI review by the regulator, and a sponsorship request. | Respond to any license items (requirements or deficiencies) | Not Displayed | N |
| Pending - Deficient (Temporary Authority) | Temporary Authority to Operate status assigned when Temporary Authority is Active and CBC requirement has been completed, but there are pending testing & education requirements or active license items. | Complete testing & education requirements and respond to any license items (requirements or deficiencies) | Temporary Authority | N |
| Pending - Withdraw Requested | Status assigned when the applicant submits a filing to withdraw a license request. | None | Not Displayed | N |
| Withdrawn – Application Abandoned | Status assigned when the applicant has not responded to regulator requests for additional information within a timely manner. | None | Not Displayed | N |
| Withdrawn - Voluntary without Licensure | Status assigned upon acceptance of a withdraw request submitted by the applicant. | None | Not Displayed | N |
| Denied | Status assigned when regulator has reviewed the license requested and determined that sufficient grounds exist to deny the request. This status may also be used by regulators who deny a renewal request for license. | None | Denied | Y |
| Denied – On Appeal | Status assigned when regulator has reviewed the license request and determined that sufficient grounds exist to deny the request but applicant has appealed the decision. | Applicant must comply with requirements of the appeal process. | Not Displayed | Y |
| Pre-Approved (Temporary Authority) | Temporary Authority to Operate status assigned when Temporary Authority is Active and testing & education requirements have not been met, but all other licensing requirements have been met. | Complete testing & education requirements. | Temporary Authority | N |
| Approved | Status assigned when regulator has reviewed the license or transition request and decided to issue a license to the applicant through NMLS. | None | Approved | N |
| Approved-Conditional | Status assigned when the regulator has reviewed the license or transition request and decided to issue a license through NMLS provided certain conditions imposed by the regulator are met. This status may also be used (i) when a regulator has imposed an increased financial responsibility requirement on the licensee or (ii) if a licensee is subject to conditions set by an administrative order that do not otherwise restrict their ability to conduct lawful activities under the license. | Comply with any conditions communicated to the applicant by the regulator. Such conditions may be temporary or on-going. | Approved | N |
| Approved - Deficient | Status assigned when a regulator determines an entity is entitled to conduct business, but may be required to provide additional documentation/information to the regulator to comply with licensing requirements. | Respond to any license items (requirements or deficiencies) placed by the regulator. | Approved | N |
| Approved - Failed to Renew | Status assigned when a licensee with a perpetual license fails to file renewal prior to December 31st. | Submit renewal request for the license under the renewal tab in NMLS. | Approved | N |
| Approved - Inactive | Status assigned when (i) the last active sponsorship is removed from a mortgage loan originator license; or (ii) when an entity or individual informs a regulator (outside NMLS) that they do not intend to conduct business under the license for a period of time, but will continue to comply with certain licensing requirements in order to retain the license. The status may also apply when a new license applicant is not currently employed as a mortgage loan originator but meets all other licensing requirements. In such cases, the license may be displayed as Approved Inactive until sponsorship by a mortgage company is acquired and approved by the regulator. Until sponsored and approved, the individual is prohibited from engaging in the business of a mortgage loan originator. This status also may be used for company licenses if the company is not associated with an approved qualifying individual. | Mortgage loan originators seeking authorization to resume licensable activities under the license must seek a new sponsor and have the new sponsor submit a sponsorship request. Before obtaining authorization to resume licensable activities, entities must comply with requirements set by the regulator to request removal of the inactive status. | Approved-Inactive | N |
| Approved – On Appeal | Status assigned when a regulator has taken action to suspend or revoke an approved license, the entity has appeal the decision and the entity is authorized to continue to conduct business while the action is on appeal. This status also may be used if a regulator rejects a renewal request and the licensee appeals the rejection. | Licensee must comply with requirements of the appeal process. | Approved | Y |
| Approved – Surrender / Cancellation Requested | Status assigned when a licensee submits a surrender / cancellation request to a regulator. | Licensee must comply with any requirements set by the regulator for surrender / cancellation of a license. | Approved Surrender / Cancellation Requested | N |
| Revoked | Status assigned when a regulator has taken action to revoke the license. Pursuant to federal SAFE legislation, placement of a mortgage loan originator license into this status will render the mortgage loan originator unable to obtain or retain a license to conduct mortgage business in any jurisdiction. | None | Revoked | Y |
| Revoked – On Appeal | Status assigned when a licensee has appealed a regulator’s action to revoke the license. | Licensee must comply with all requirements of the appeal process. | Revoked-On Appeal | Y |
| Suspended | Status assigned when a regulator has taken action to suspend the license. | None | Suspended | Y |
| Suspended - On Appeal | Status assigned when a licensee has appealed a regulators action to suspend the license. | Licensee must comply with all requirements of the appeal process. | Suspended-On Appeal | Y |
| Temporary Cease and Desist | Status assigned when a regulator issues a temporary cease and desist order against the licensee. Respond to and comply with any requirements / restrictions set forth in the order. | Temporary Cease and Desist | Y | |
| Terminated - Expired | Status assigned to a non-perpetual license when entity fails to renew a license by the end of the Reinstatement Period or the jurisdiction’s deadline (whichever is earlier), marks a license as Do Not Renew or has failed to address outstanding issues with a license that has been suspended. | None (New license request must be filed if the entity wishes to obtain authorization to resume licensable activities.) | Expired | N |
| Terminated - Failed to Renew | Status assigned to a non-perpetual license when a licensee fails to file for renewal prior to December 31st or marks a license as Do Not Renew. The licensee is not authorized to conduct business with a license in this status. | Licensees wishing to retain their license should file a renewal/reinstatement request under the Renewal Tab prior to the end of the regulators reinstatement period, if applicable. | Expired | N |
| Terminated - Ordered to Surrender | Status assigned when a regulator orders a licensee to surrender their license. | Licensee must comply with terms of order. | Ordered to Surrender | Y |
| Terminated – Surrendered / Cancelled | Status assigned when a regulator approved a surrender / cancellation request submitted by the licensee. | None | Voluntary Surrender | N |
1 The Adverse Status
indicator for a license is currently shown in the
Company Snapshot and in the
License/Registration List page under the
Composite View tab.