Us Code § 5117 - Employment transition of loan originators

Full text of Us Code United States Code § 5117 — Employment transition of loan originators, with citation guidance and answers to common questions.

§ 5117. Employment transition of loan originators

(a) Definitions

In this section:

(1) Application State

The term "application State" means a State in which a registered loan originator or a State-licensed loan originator seeks to be licensed.

(2) State-licensed mortgage company

The term "State-licensed mortgage company" means an entity that is licensed or registered under the law of any State to engage in residential mortgage loan origination and processing activities.

(b) Temporary authority to originate loans for loan originators moving from a depository institution to a non-depository institution

(1) In general

Upon becoming employed by a State-licensed mortgage company, an individual who is a registered loan originator shall be deemed to have temporary authority to act as a loan originator in an application State for the period described in paragraph (2) if the individual—

(A) has not had—

(i) an application for a loan originator license denied; or

(ii) a loan originator license revoked or suspended in any governmental jurisdiction;


(B) has not been subject to, or served with, a cease and desist order—

(i) in any governmental jurisdiction; or

(ii) under section 5113(c) of this title;


(C) has not been convicted of a misdemeanor or felony that would preclude licensure under the law of the application State;

(D) has submitted an application to be a State-licensed loan originator in the application State; and

(E) was registered in the Nationwide Mortgage Licensing System and Registry as a loan originator during the 1-year period preceding the date on which the information required under section 5104(a) of this title is submitted.

(2) Period

The period described in this paragraph shall begin on the date on which an individual described in paragraph (1) submits the information required under section 5104(a) of this title and shall end on the earliest of the date—

(A) on which the individual withdraws the application to be a State-licensed loan originator in the application State;

(B) on which the application State denies, or issues a notice of intent to deny, the application;

(C) on which the application State grants a State license; or

(D) that is 120 days after the date on which the individual submits the application, if the application is listed on the Nationwide Mortgage Licensing System and Registry as incomplete.

(c) Temporary authority to originate loans for State-licensed loan originators moving interstate

(1) In general

A State-licensed loan originator shall be deemed to have temporary authority to act as a loan originator in an application State for the period described in paragraph (2) if the State-licensed loan originator—

(A) meets the requirements of subparagraphs (A), (B), (C), and (D) of subsection (b)(1);

(B) is employed by a State-licensed mortgage company in the application State; and

(C) was licensed in a State that is not the application State during the 30-day period preceding the date on which the information required under section 5104(a) of this title was submitted in connection with the application submitted to the application State.

(2) Period

The period described in this paragraph shall begin on the date on which the State-licensed loan originator submits the information required under section 5104(a) of this title in connection with the application submitted to the application State and end on the earliest of the date—

(A) on which the State-licensed loan originator withdraws the application to be a State-licensed loan originator in the application State;

(B) on which the application State denies, or issues a notice of intent to deny, the application;

(C) on which the application State grants a State license; or

(D) that is 120 days after the date on which the State-licensed loan originator submits the application, if the application is listed on the Nationwide Mortgage Licensing System and Registry as incomplete.

(d) Applicability

(1) Employer of loan originators

Any person employing an individual who is deemed to have temporary authority to act as a loan originator in an application State under this section shall be subject to the requirements of this chapter and to applicable State law to the same extent as if that individual was a State-licensed loan originator licensed by the application State.

(2) Engaging in mortgage loan activities

Any individual who is deemed to have temporary authority to act as a loan originator in an application State under this section and who engages in residential mortgage loan origination activities shall be subject to the requirements of this chapter and to applicable State law to the same extent as if that individual was a State-licensed loan originator licensed by the application State.

(Pub. L. 110–289, div. A, title V, §1518, as added Pub. L. 115–174, title I, §106(a), May 24, 2018, 132 Stat. 1302.)


Statutory Notes and Related Subsidiaries

Effective Date

Section effective 18 months after May 24, 2018, see section 106(d) of Pub. L. 115–174, set out as an Effective Date of 2018 Amendment note under section 5112 of this title.

CHAPTER 52—EMERGENCY ECONOMIC STABILIZATION

Sec.
5201.
Purposes.
5202.
Definitions.

        

SUBCHAPTER I—TROUBLED ASSETS RELIEF PROGRAM

5211.
Purchases of troubled assets.
5212.
Insurance of troubled assets.
5213.
Considerations.
5214.
Financial Stability Oversight Board.
5215.
Reports.
5216.
Rights; management; sale of troubled assets; revenues and sale proceeds.
5217.
Contracting procedures.
5218.
Conflicts of interest.
5219.
Foreclosure mitigation efforts.
5219a.
Home Affordable Modification Program guidelines.
5219b.
Public availability of information of Making Home Affordable Program.
5220.
Assistance to homeowners.
5220a.
Application of GSE conforming loan limit to mortgages assisted with TARP funds.
5220b.
Multifamily mortgage resolution program.
5221.
Executive compensation and corporate governance.
5222.
Coordination with foreign authorities and central banks.
5223.
Minimization of long-term costs and maximization of benefits for taxpayers.
5224.
Market transparency.
5225.
Graduated authorization to purchase.
5226.
Oversight and audits.
5227.
Study and report on margin authority.
5228.
Funding.
5229.
Judicial review and related matters.
5230.
Termination of authority.
5231.
Special Inspector General for the Troubled Asset Relief Program.
5231a.
Public-Private Investment Program; additional appropriations for the Special Inspector General for the Troubled Asset Relief Program.
5232.
Credit reform.
5233.
Congressional Oversight Panel.
5234.
Cooperation with the FBI.
5235.
Disclosures on exercise of loan authority.
5236.
Exchange Stabilization Fund reimbursement.
5237.
Authority to suspend mark-to-market accounting.
5238.
Study on mark-to-market accounting.
5239.
Recoupment.
5240.
Preservation of authority.
5241.
Temporary increase in deposit and share insurance coverage.

        

SUBCHAPTER II—BUDGET-RELATED PROVISIONS

5251.
Information for congressional support agencies.
5252.
Reports by the Office of Management and Budget and the Congressional Budget Office.
5253.
Emergency treatment.

        

SUBCHAPTER III—TAX PROVISIONS

5261.
Gain or loss from sale or exchange of certain preferred stock.

        

About This Section

12 U.S.C. § 5117 is part of Title 12 of the United States Code. The United States Code is the official codification of federal statutes maintained by the Office of the Law Revision Counsel of the U.S. House of Representatives. Congress amends the Code through new public laws, which are eventually incorporated into the relevant title.

This section may be cited in legal writing as 12 U.S.C. § 5117. For the most current official text, including any recent amendments, use the official source links below. Do not rely on this page as the sole authority for legal citation or litigation.

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Sources

Source: official Us Code text · Last verified 2026-08-27

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Frequently Asked Questions About Us Code § 5117

What does United States Code § 5117 cover?

Section 5117 ("Employment transition of loan originators") is part of the United States Code, the codified statutory law of Us Code. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.

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