An MLO decides to surrender an active state license through NMLS. After submitting the surrender filing, what should the MLO do to establish the request's disposition?
Correct Answer
A) Follow the jurisdiction-specific requirements and confirm the regulator's action and resulting license status
A. Follow state requirements and confirm the regulator’s resulting action and status. An active license is surrendered; an unapproved application is withdrawn. NMLS directs individuals to check state requirements and confirm the request’s disposition rather than assume submission completes the process. Scope and exceptions: Do not infer continued permission to work from submitting a request. Check the actual license status and regulator instructions. This source concerns individual licenses, unlike the original company-filing reference. Source: License Surrenders and Withdrawals — https://mortgage.nationwidelicensingsystem.org/knowledge/Products/nmls/pubs/ugIndState/licensing/individual/topics/licInd_mu4_surrender_surrenderingIndividualLicensesOrRegistrations.html Individual License Surrender Requests, steps 7–9 — https://mortgage.nationwidelicensingsystem.org/licensees/resources/LicenseeResources/Surrender%20Request%20Reference%20Guide-MLO.pdf
Why This Is the Correct Answer
A. Follow state requirements and confirm the regulator’s resulting action and status. An active license is surrendered; an unapproved application is withdrawn. NMLS directs individuals to check state requirements and confirm the request’s disposition rather than assume submission completes the process. Scope and exceptions: Do not infer continued permission to work from submitting a request. Check the actual license status and regulator instructions. This source concerns individual licenses, unlike the original company-filing reference.
Why the Other Options Are Wrong
Option B: Assume the request is approved automatically after 12 months without a new complaint
The process does not establish automatic twelve-month approval.
Option C: Assume clicking submit deletes the license and all prior regulatory history immediately
Submitting a request does not instantly erase the license or its history.
Option D: Treat the filing as a withdrawal of a pending application rather than surrender of an active license
This confuses surrender with withdrawal.
Exam Tip
A submitted request and a regulator-approved status are different events.
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