A loan originator has not maintained a state loan originator license for five years. However, during the last three years of that five-year period, she was employed as a registered loan originator with a bank. Is she required to retake the licensing test when she decides to apply for a new state license?

The correct response highlights the importance of understanding the nuances of state licensing regulations for loan originators. In this scenario, although the loan originator has not held an active license for five years, her employment as a registered loan originator at a bank does indeed allow for certain time to be recognized, which can influence licensing requirements.

Specifically, state regulations often provide that time spent as a registered loan originator contributes to the individual's experience and ongoing competence in the field. This is crucial because it demonstrates that the loan originator has maintained her industry knowledge and skills, even if she hasn’t held an active state license during that specific five-year window.

Therefore, when she chooses to apply for a new state license, her previous employment as a registered loan originator serves as relevant experience, which means she may not be required to retake the licensing test. It reflects the stance that practical experience in the role offers significant value and continuity in the profession. This understanding is essential for practitioners in the real estate and financial sectors, as licensing requirements can vary significantly by state and can be influenced by specifics like registered employment.

This context underscores why the assertion that her time as a registered loan originator is not counted among the years lacking a maintained license is accurate