The Office of the Commissioner of Financial Regulation has announced plans to launch a new staggered licensing program for most businesses beginning in January 2005. Lenders, including mortgage brokers, will now be granted their licenses based on the month of application rather than all being licensed effective the first of every-other-year.

A number of new mortgage lender and broker applicants may have already received licenses with staggered expiration dates following the October 1, 2004 kick-off of the program.

The Maryland Association of Mortgage Brokers has agreed to assist the Commissioner in distributing information about the new program and in encouraging lenders and brokers to cooperate fully. "A new staggered licensing cycle can only help speedline the licensing, and re-licensing, process," said MAMB's President Ralph Dawson.

Historically, all licenses expired on December 31st of each odd-numbered year, resulting in a massive renewal period for all industries. Often, there was a frantic rush at the end of the year to submit the renewal application and all supporting documents. Some may have even experienced difficulties supplying continuing education information, adjusting the surety bond or experienced other delays.

Now, licensees will renew periodically during the year and experience what the commissioner's office hopes will be a hassle-free renewal process with less documentation.

"With staggered licensing, your license will expire two years from the date of issue," explained MAMB's Executive Director Thomas Shaner who represented the association in providing counsel to the financial regulations agency as it planned the new initiative.

Bringing everyone aboard requires full participation during the transition phase. The agency has made the renewal process easier.

First, licensees will no longer have the tedious task of detailing continuing education course information for every covered employees. With the streamline application, they will simply provide the names of the covered employees and attest that they have achieved the required CE. During any normally scheduled compliance examination, this information will be verified and the licensee must be able to document compliance with the continuing education requirement.

The simplified renewal process also includes a simplified surety bond. There will be no need to specify a particular expiration date on the surety bond. Licensees will only need to have a notice from your insurance company on file with the Commissioner of Financial Regulation that the bond is continuous. Updating the bond will not be required again with a new expiration date, unless the surety changes or the bond is canceled.

Lastly, licensees do not have to submit a Certificate of Good Standing with the renewal application. Although they must be in good standing with the appropriate tax authority, documentation is not necessary during the transition phase.

To recap, renewing your Maryland Mortgage Lender License only requires completing an online application, updating your bond information (if notice from your insurance company that your bond is continuous is not on file at the Office of the Commissioner of Financial Regulation) and rendering payment with a credit card. Mortgage lenders/brokers may renew online (www.dllr.state.md.us/finance) using the previously issued PIN/Password. If you forgot your password, use the "forgot my password option" on the login screen or contact the agency for a new PIN number, if necessary. A new PIN number will be forwarded by mail only upon request.

Since mortgage lenders/brokers are the agency's largest license category, selected groups will be contacted at various intervals throughout year 2005. You will be notified about one to two months before your renewal application is due. Expect to receive a renewal letter, which will show the newly assigned license expiration date and pro-rated fee for license renewal. All related branch offices will renew with the original office and receive the same license expiration date. Renewal notices will be forwarded to the first group of mortgage lenders in February 2005. YOU DO NOT HAVE TO CONTACT THE AGENCY, YOU WILL RECEIVE YOUR RENEWAL PACKAGE BEFORE NOVEMBER 1, 2005.