On December 4, the Michigan governor signed HB 5084, which, among other things, includes provisions granting temporary authority for certain mortgage loan originators (MLOs) to originate loans in the state without a state license. Specifically, HB 5084 provides that, in order to be eligible for temporary authority to operate, the individual must be employed by an entity that is licensed or registered under applicable state laws and meets the following additional criteria: has no previous MLO application denials or MLO license suspensions or revocations in any state; has not been subject to, or served with, a cease and desist order in any state; has not been convicted of, or pled guilty or no contest to, a disqualifying crime; has submitted the required application and fee and meets the applicable surety bond requirement; was registered in the NMLS as a loan originator during the one-year period immediately preceding the date on which the applicant submitted the required information; and has not been subject to a prohibition order pertaining to any of the financial licensing acts. Individuals who were licensed as mortgage loan originators in another state the individual is eligible for temporary authority to act as a mortgage loan originator if the individual meets the criteria above and was licensed in another state during the 30 days immediately prior to submitting the required application information in Michigan.

Beginning November 24, HB 5084 permits qualifying MLO applicants to have temporary authority to act as a mortgage loan originator while their applications are pending for licensure for up to 120 days, or upon the withdrawal, denial, notice of intent to deny, or approval of the licensing application, whichever is sooner.