                                 CODE OF VIRGINIA

INACTIVE MORTGAGE LOAN ORIGINATOR LICENSES (§ 6.2-1712.1)

A. Notwithstanding any other provision of this chapter, if the Commission finds
that an individual has applied for a mortgage loan originator license and meets
all applicable requirements for licensure except &#xA7; 6.2-1703, then the
Commission shall issue a mortgage loan originator license to the applicant.
However, the license issued by the Commission shall be inactive by operation of
law until the Commission has updated the licensee&#8217;s status in the Registry
pursuant to subsection D.

B. Notwithstanding any other provision of this chapter, if the Commission finds
that an individual has requested renewal of his mortgage loan originator license
in accordance with subsection C of &#xA7; 6.2-1711 and meets all applicable
requirements for license renewal except &#xA7; 6.2-1703, then the Commission
shall renew the individual&#8217;s mortgage loan originator license. However,
the license renewed by the Commission shall be inactive by operation of law
until the Commission has updated the licensee&#8217;s status in the Registry
pursuant to subsection D.

C. If at any time a licensee ceases to be covered by a surety bond meeting the
requirements of &#xA7; 6.2-1703, then the individual&#8217;s license shall be
inactive by operation of law until the Commission has updated the
licensee&#8217;s status in the Registry pursuant to subsection D.

D. If a licensee&#8217;s mortgage loan originator license is inactive by
operation of law pursuant to this section, then the licensee shall not engage in
the business of a mortgage loan originator until (i) the Commission has
determined that the licensee is covered by a surety bond meeting the
requirements of &#xA7; 6.2-1703 and (ii) based upon its determination, the
Commission has updated the licensee&#8217;s status in the Registry to indicate
that the licensee may engage in the business of a mortgage loan originator.

HISTORY: 2016, c. 330; 2019, c. 740.