If a State Licensed LO allows their license to expire, how long do they have to renew it before retesting is required?

The correct answer is that a State Licensed Loan Originator (LO) has 5 years to renew their license after it has expired before retesting is required. This provision is established to provide flexibility and to accommodate individuals who may need additional time to complete their required continuing education or resume their activities in the mortgage industry.

Once the 5-year period has elapsed, if the LO has not renewed their license, they will be required to complete the testing requirements again to re-establish their licensure. This is aligned with the goals of ensuring that loan originators remain knowledgeable about industry regulations and practices, which ultimately helps to protect consumers.

This 5-year renewal guideline emphasizes the importance of keeping licensure up to date without immediately imposing retraining penalties, while also safeguarding the integrity of the mortgage industry.