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Loan Originator FAQ’s

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Q. How many hours of continuing education (CE) must a loan originator/solicitor complete each year?

A.
Loan originators and solicitors must complete six hours of CE each calendar year (January 1 – December 31).

Q. If I enroll for my CE in April, does that count towards my renewal the following June?

A.
No, your CE must be completed in the calendar year PRIOR to the year of your renewal. For example, if you are to renew your loan originator certificate by June 30, 2009, you must have completed the six hours of CE no later than Dec. 31, 2008. Any CE taken during calendar year 2009 will only apply towards your 2010 renewal.

Q. What happens if I fail to complete my CE requirements?

A.
If you fail to complete your six hours of CE, when you renew you will be assessed a $250 fee for failure to comply with the requirements.

Q. What type of CE courses are required?

A.
You may refer to the Memorandum regarding CE found at the following webpage: http://www.obre.state.il.us/resfin/LOContEdu.pdf

Q. Are loan originators (solicitors) required to submit proof of CE completion to IDFPR?

A.
No. Loan Originators must maintain proof of completion and also maintain a copy of CE completion proof with their sponsor. Each mortgage broker is required to submit a Loan Originator Continuing Education Report to the Division of Banking by May 31st of each year.

Q. Do I have to complete 6 hours of CE during the first year of my registration as a loan originator?

A.
Yes. The Licensing Act does NOT allow a waiver of CE completion for first year licensees. Each loan originator must complete 6 hours of CE regardless of when the initial certificate was received*.

*Note: the Director does extend a waiver to those individuals who obtain their initial certificate between Dec. 1 – 31. Given the time factor of not knowing when the certificate will be issued and the end of the year the Director does extend a waiver to those individuals. These individuals must complete their CE no later than April 30th prior to their renewal. The loan originators/solicitors must also complete 6 hours of CE the same calendar year to meet their requirements for the following year’s renewal.

Q. What does it mean to be INOPERATIVE?

A.
To be INOPERATIVE a loan originator/solicitor is without a sponsor. A loan originator may not perform loan origination without an Illinois licensed mortgage broker as his/her sponsor.

Q. Why does a person have to pay a REACTIVATION fee of $100?

A.
The Act states that if a loan originator is INOPERATIVE for over 90 days a reactivation fee is to be paid prior to the loan originator being returned to UNCONDTIONAL status.

Q. Can I submit a personal check as payment for my renewal or transfer?

A.
The Division of Banking accepts cashier’s checks and money orders only. Payments made via personal checking accounts will be returned to the sender.

Q. I am in the process of transferring to a different sponsor. Can I work for my new sponsor before I receive my new certificate?

A.
Your Transfer Request Form serves as a 45 Day Permit. Once you submit the form and it has been received by the Department, you may begin working for your new sponsor. You must maintain a copy of the Transfer Request Form, as does your new sponsor, and you may work for up to 45 days while awaiting the approval of that form by the Department.

Q. My license expired last June 30, can I still renew?

A.
If you failed to renew by June 30th you had until August 31st to renew and pay the appropriate fees. After August 31st loan originators are not allowed to renew but must restart the registration process. That process entails submitting a new application to AMP and being re-fingerprinted. Applicants who are restarting will not be required to retake the examination.

Q. Can I place my license on “Hold” because I’m not doing loan origination right now?

A.
In short, no. If you renewed during the last renewal cycle you may be ACTIVE UNCONDITIONAL or ACTIVE INOPERATIVE. Even though you are currently not working as a loan originator (INOPERATIVE), your status will remain ACTIVE up to the expiration date shown on your certificate. If you do not renew during the next renewal cycle, your status will automatically revert to INACTIVE.

Q. I am currently working for a bank (an exempt entity) and want to renew my certificate during the next renewal cycle. How do I go about that?

A.
If you are employed by an exempt entity you cannot renew your certificate and it will automatically become INACTIVE. The Act does not allow for employees of an exempt entity to maintain a loan originator’s certificate. If your certificate becomes INACTIVE and you return to work for a mortgage broker, you will be required to restart the registration process (see above).

Q. What is the difference between a 031 (loan originator) and a 032 (loan solicitor)?

A.
Loan solicitors cannot discuss loan terms and conditions with the potential borrower. Solicitors may only take basic personal information from the potential borrower and may not review mortgage structures with the client.

Q. I am currently a loan solicitor. How do I go about becoming a loan originator?

A.
If you wish to be reclassified as a loan originator from a loan solicitor, you will be required to pass the examination and submit the reclassification form with the exam report along with the appropriate fee. Download the following form and instructions to assist you with the reclassification: http://www.obre.state.il.us/resfin/Forms/LoanOriginatorReclassApp.pdf

Q. Can a loan originator work for more than one sponsor at a time?

A.
No, a loan originator may be sponsored by only one mortgage broker at a time.

Q. Must I be a resident of Illinois to be a registered loan originator in Illinois?

A.
No, you do not need to be a resident of Illinois to be registered by the Department. But if you are doing residential mortgage loans for property located in Illinois you must be registered by the Department.

Q. Does Illinois offer reciprocity with other states for loan originator licensure?

A.
No, Illinois does not offer reciprocity for other states’ loan originators licenses.

Q. I am not licensed in Illinois as a loan originator but some states allow loan originators licensed in other states to perform one or two loans without having to obtain a license. Does Illinois allow a minimum number of loans without being licensed?

A.
No, to perform loan origination for Illinois residential mortgages you must be registered by this Department.

Q. Once I submit my loan originator application, how long will it take before I receive my certificate?

A.
Once you submit your application to AMP along with the required fees and documentation, you should anticipate 3 weeks for the process to be finalized – based upon your application not having any indication of positive results from the credit and criminal background checks. Should your application divulge an issue that requires investigation by the Department, the time required for review may be lengthened.

Q. I had a felony conviction; can I still become a loan originator?

A.
Each application is individually reviewed and any application which indicates a conviction will be considered for possible approval. The process very well may entail inquiry by the Department with the applicant for further information regarding the applicant’s character.

Q.	How many hours of continuing education (CE) must a loan originator/solicitor complete each year?
A.	Loan originators and solicitors must complete six hours of CE each calendar year (January 1 – December 31).
Q.	If I enroll for my CE in April, does that count towards my renewal the following June?
A.	No, your CE must be completed in the calendar year PRIOR to the year of your renewal. For example, if you are to renew your loan originator certificate by June 30, 2009, you must have completed the six hours of CE no later than Dec. 31, 2008. Any CE taken during calendar year 2009 will only apply towards your 2010 renewal.
Q.	What happens if I fail to complete my CE requirements?
A.	If you fail to complete your six hours of CE, when you renew you will be assessed a $250 fee for failure to comply with the requirements.
Q.	What type of CE courses are required?
A.	You may refer to the Memorandum regarding CE found at the following webpage: http://www.obre.state.il.us/resfin/LOContEdu.pdf
Q.	Are loan originators (solicitors) required to submit proof of CE completion to IDFPR?
A.	No. Loan Originators must maintain proof of completion and also maintain a copy of CE completion proof with their sponsor. Each mortgage broker is required to submit a Loan Originator Continuing Education Report to the Division of Banking by May 31st of each year.
Q.	Do I have to complete 6 hours of CE during the first year of my registration as a loan originator?
A.	Yes. The Licensing Act does NOT allow a waiver of CE completion for first year licensees. Each loan originator must complete 6 hours of CE regardless of when the initial certificate was received. Note: the Director does extend a waiver to those individuals who obtain their initial certificate between Dec. 1 – 31. Given the time factor of not knowing when the certificate will be issued and the end of the year the Director does extend a waiver to those individuals. These individuals must complete their CE no later than April 30th prior to their renewal. The loan originators/solicitors must also complete 6 hours of CE the same calendar year to meet their requirements for the following year’s renewal.
Q.	What does it mean to be INOPERATIVE?
A.	To be INOPERATIVE a loan originator/solicitor is without a sponsor. A loan originator may not perform loan origination without an Illinois licensed mortgage broker as his/her sponsor.
Q.	Why does a person have to pay a REACTIVATION fee of $100?
A.	The Act states that if a loan originator is INOPERATIVE for over 90 days a reactivation fee is to be paid prior to the loan originator being returned to UNCONDTIONAL status.
Q.	Can I submit a personal check as payment for my renewal or transfer?
A.	The Division of Banking accepts cashier’s checks and money orders only. Payments made via personal checking accounts will be returned to the sender.
Q.	I am in the process of transferring to a different sponsor. Can I work for my new sponsor before I receive my new certificate?
A.	Your Transfer Request Form serves as a 45 Day Permit. Once you submit the form and it has been received by the Department, you may begin working for your new sponsor. You must maintain a copy of the Transfer Request Form, as does your new sponsor, and you may work for up to 45 days while awaiting the approval of that form by the Department.
Q.	My license expired last June 30, can I still renew?
A.	If you failed to renew by June 30th you had until August 31st to renew and pay the appropriate fees. After August 31st loan originators are not allowed to renew but must restart the registration process. That process entails submitting a new application to AMP and being re-fingerprinted. Applicants who are restarting will not be required to retake the examination.
Q.	Can I place my license on “Hold” because I’m not doing loan origination right now?
A.	In short, no. If you renewed during the last renewal cycle you may be ACTIVE UNCONDITIONAL or ACTIVE INOPERATIVE. Even though you are currently not working as a loan originator (INOPERATIVE), your status will remain ACTIVE up to the expiration date shown on your certificate. If you do not renew during the next renewal cycle, your status will automatically revert to INACTIVE.
Q.	I am currently working for a bank (an exempt entity) and want to renew my certificate during the next renewal cycle. How do I go about that?
A.	If you are employed by an exempt entity you cannot renew your certificate and it will automatically become INACTIVE. The Act does not allow for employees of an exempt entity to maintain a loan originator’s certificate. If your certificate becomes INACTIVE and you return to work for a mortgage broker, you will be required to restart the registration process (see above).
Q.	What is the difference between a 031 (loan originator) and a 032 (loan solicitor)?
A.	Loan solicitors cannot discuss loan terms and conditions with the potential borrower. Solicitors may only take basic personal information from the potential borrower and may not review mortgage structures with the client.
Q.	I am currently a loan solicitor. How do I go about becoming a loan originator?
A.	If you wish to be reclassified as a loan originator from a loan solicitor, you will be required to pass the examination and submit the reclassification form with the exam report along with the appropriate fee. Download the following form and instructions to assist you with the reclassification: http://www.obre.state.il.us/resfin/Forms/LoanOriginatorReclassApp.pdf
Q.	Can a loan originator work for more than one sponsor at a time?
A.	No, a loan originator may be sponsored by only one mortgage broker at a time.
Q.	Must I be a resident of Illinois to be a registered loan originator in Illinois?
A.	No, you do not need to be a resident of Illinois to be registered by the Department. But if you are doing residential mortgage loans for property located in Illinois you must be registered by the Department.
Q.	Does Illinois offer reciprocity with other states for loan originator licensure?
A.	No, Illinois does not offer reciprocity for other states’ loan originators licenses.
Q.	I am not licensed in Illinois as a loan originator but some states allow loan originators licensed in other states to perform one or two loans without having to obtain a license. Does Illinois allow a minimum number of loans without being licensed?
A.	No, to perform loan origination for Illinois residential mortgages you must be registered by this Department.
Q.	Once I submit my loan originator application, how long will it take before I receive my certificate?
A.	Once you submit your application to AMP along with the required fees and documentation, you should anticipate 3 weeks for the process to be finalized – based upon your application not having any indication of positive results from the credit and criminal background checks. Should your application divulge an issue that requires investigation by the Department, the time required for review may be lengthened.
Q.	I had a felony conviction; can I still become a loan originator?
A.	Each application is individually reviewed and any application which indicates a conviction will be considered for possible approval. The process very well may entail inquiry by the Department with the applicant for further information regarding the applicant’s character.