What must a mortgage loan originator do upon terminating their employment?

Upon terminating their employment, a mortgage loan originator is required to notify their employer promptly in writing. This is essential for several reasons related to compliance and proper record-keeping within the lending institution. Written notification serves as documented evidence of the termination and allows the employer to update their records regarding the loan originator's status. It also helps ensure that any necessary steps can be taken to transition pending loans or client relationships appropriately.

Additionally, this written notification can aid in the management of compliance with state and federal regulations regarding mortgage loans, as the employer must keep accurate records of licensed personnel. The promptness of this notification is equally important, as it facilitates a smooth transition, ensuring that all parties involved are aware of the change in employment status in a timely manner.