The Merger and Acquisition (M&A) functionality establishes a streamlined process for transferring multiple federal registrations for mortgage loan originators (MLOs) changing employers as the result of certain acquisitions, mergers, or reorganizations. This functionality also provides MLOs with a 60-day window to appropriately update their records following the transaction's effective date. Follow the steps below when transferring MLO employment.
1. Determine the best option to transfer MLO employment
- Option A: Standard employment change completed on an MU4R Form (lower cost for transferring 14 or fewer MLOs). Unlike Option B, this option requires a new background check to be completed. Please keep in mind that the institution has 60 days to complete the transfer.
- Per MLO Cost: $30 employment change + $36.25 criminal background check fee
- Resources: Employment Change Quick Guides
- If Option A is best for your institution, the additional steps below are not required
- Option B: Bulk transfer MLOs using the M&A functionality (Recommended for transferring 14 or more MLOs).
- Costs: $750 base processing fee + $10 for each successfully processed MLO
NOTE: The bulk transfer functionality (Option B) is faster than the standard employment transfer process (Option A) and does not require a background check, but only results in a lower cost when transferring 14 or more MLOs. Otherwise, using the standard employment transfer process incurs lower fees.
- Follow the steps below if Option B is best for your institution.
2. Contact the NMLS Call Center to obtain the Merger and Acquisition Request Form
- NMLS Call Center: 1-855-NMLS123 (1-855-665-7123)
3. Complete and Submit the Merger and Acquisition Form
- Submit the Merger and Acquisition Request Form in advance of the transaction's effective date to ensure the full 60 days allowed under the SAFE Act is available to complete this process.
- If the form is submitted after the transaction date, your institution will not receive the full 60 days to complete this process.
4. Prepare for bulk transfer process
5. Upload completed Merger and Acquisition Upload Template in NMLS
- Upload the completed file under the Tasks tab in the M&A Options section.
6. Track progress of MLO transfers
- After the file is successfully uploaded, track the progress of MLO transfers under the Tasks tab in the Mergers & Acquisitions Transactions List section.
- Review the relevant quick guides for step-by-step instructions
Completing Mergers and Acquisitions during Renewal Period
Renewal Period (November 1 - December 31): If an M&A occurs during the renewal period, all active MLOs must be renewed by the acquired institution prior to being transferred (to the acquiring/purchasing institution) via the M&A process in NMLS.
Inactive Status: Any MLO with a registration status of "Inactive - Failed to Renew" must be reactivated by the acquired institution prior to being transferred to the acquiring/purchasing institution) via the M&A process.