Under existing statute, mortgage loan originators licensed by the Department of Financial Institutions must originate mortgage loans from a licensed location. If a mortgage loan was originated from someone's residence, it would be a violation of the Consumer Loan Act, unless the residence is licensed for mortgage loan origination.
Mortgage loan originators are provided the flexibility to work from their home without licensing their home as a branch location, provided:
PRO: The pandemic has forced a lot of industries to rely on its employees to do their work from home. People cannot go and see their lenders at a convenient time, nor do many feel safe given the current situation. This seems like a good idea to make the guidance that the Department of Financial Institutions provided to make it temporarily permissible for mortgage loan originators (MLOs) to work from home permanent. We should move forward with this. These statutes need to be updated to reflect our mobile workforce and the changes that have occurred with new technologies. To date, the temporary ability for MLOs to work from home has worked really well. If this bill were to pass, it would be supported through rulemaking with stakeholder feedback. Almost all documentation for refinancing is digital. This cannot happen with significant security resources.