AR HB1439

Amends the definition of "transitional loan officer license" to require that the individual be "employed and sponsored" by a licensed mortgage banker or mortgage broker, adding explicit sponsorship language.

Establishes a new definition of "sponsor" as a mortgage broker or mortgage banker licensed under the Fair Mortgage Lending Act that assumes responsibility for and agrees to supervise the actions of a loan officer or transitional loan officer.

Modifies termination procedures so that when a loan officer's or transitional loan officer's employment ends, the sponsor must terminate the sponsorship with the commissioner within 30 days, and the loan officer's license becomes designated as "approved-inactive" until a new sponsor files an application.

Imposes a $250 late fee on licensees that fail to timely notify the commissioner of employment termination, with waiver discretion available to the commissioner for good cause.

Allows a loan officer's license to change from "approved-inactive" to "approved" status if a licensed mortgage broker or mortgage banker files a sponsorship application, pays a $50 fee, and provides notice to the commissioner before the license terminates.