In the Bay State, 375 non-bank companies have not received renewal of mortgage and lender licenses, and a further 1,500 individual loan originators (LOs) throughout the state remain unlicensed due to errors in the application, according to the Division of Banks.

Either the 375 companies never submitted an application, or did, but the application was incomplete because the company never accepted any mortgage loan originator sponsorship applications. Individual loan originators must be sponsored to originate loans in Massachusetts.

In order to originate loans, all loan originators at the unlicensed companies must be licensed and all applications sent to the DOB immediately.

The 1,500 loan originator applications were received in time by the DOB, but were assigned the status of “Pending-Incomplete” due to supplementary items not being submitted or them being unsponsored by a corporate entity.