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NMLS and Real Estate Licensing Suspension and Revocation
What happens if a NMLS or Real Estate Licensee gets their license suspended, revoked, or taken away by the state regulator but is not charged or arrested by law enforcement and/or court system. It is just from the state regulator. License got revoked in 2013 and when is the licensee eligible to apply for a new DRE and/or NMLS license?
Individuals Barred by FINRA
The individuals listed below have a FINRA bar in effect, which means FINRA has permanently prohibited them from association with any FINRA member in any capacity. The list comprises individuals who were associated with a FINRA registered firm on or after FINRA launched Web CRD on August 16, 1999. Where indicated, individuals on this list have appealed FINRA’s final action to the SEC or, in the case of a final order of the SEC sustaining FINRA’s action, to the courts; thus, the findings and sanctions of FINRA in those instances are subject to review and modification by the SEC or the courts.
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7 Replies
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When a state administrator like the California Department of Real Estate or an NMLS managing state agency takes administrative action, such as setting a suspension, revocation, or taking away a license, these actions are with intent to discipline. Therefore, even when there are no criminal arrests or charges, the agency flags the licensee, which will form part of the public file.
Below are some key points:
Administrative vs. Criminal Action
- Administrative Action: The government’s actions against its citizens do not involve criminal prosecution.
- Sanctioned Record: Records of disciplines can be made in the absence of judicial intervention.
- Such records affect the discretion of some agencies to grant applications, as they are considered in the disciplinary history.
Reapplying for a New License:
Waiting Periods and Conditions:
- Most state agencies have or often impose, a waiting period before reapplying to any position, especially if one is disqualified.
- For example, if someone is disqualified in 2013, there are narrow statutory or policy-defined waiting terms.
- Normally, such pauses are deemed for about 5-10 years, after which reapplications are permitted.
- State regulations dictate the waiting period, the case’s severity, and the agency’s steps.
Most candidates undergo some form of rehabilitation during the waiting period before coming in for their rehabilitation evaluation, but the agency checklist must also be considered.
DRE and NMLS provide specifics, which are offered below:
- Regarding DRE: Like many other states, a California participant whose license was revoked in 2013 will likely be submitted for reapplication, considering the waiting period stipulations.
- However, as this timeframe differs from region to region, it is best to contact California’s Department of Real Estate.
- As for NMLS, like other regions, agencies with control over the NMLS licenses have additional time constraints set alongside prerequisites that need to be accomplished before being offered a new license.
- Regarding FINRA Bar Considerations, the information you provided on people barred by FINRA is related to the security industry’s disciplinary actions.
- Permanently Within the scope of placing arbitrary, attended-on action through preset guidelines under control of the arms during the day makes across the board of all other member issuing.
The reasoning made, regardless of whether the state board allows reapplying after a certain duration, still enforces the provided conflict by working under the governed terms of FINRA.
In case of a license revoked in 2013:
DRE License: A licensee is likely to be able to apply for a new real estate license, considering the agency’s waiting time has elapsed. Any additional stipulations (such as proving rehabilitation) have been satisfactorily completed.
NMLS License: The same procedure applies. The waiting time and remedial actions mandated by the state regulatory agency must be completed.
Important Next Step: These steps should be followed through as they differ from jurisdiction by jurisdiction: the precise timelines and requirements are best gleaned directly from the relevant state agency, which has formulated specific guidelines, as there is a difference based on region as well as the form of discipline action taken.
In summary, while a state regulator’s action does not translate into a criminal offense, it continues to severely address the impact of control on license eligibility. The reapplication for a DRE or NMLS license is almost always after the state-imposed period of inactivity plus remedial actions are complete, with additional sanctions specific to the field, like FINRA bars, enforcing extra unfounded rules.
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The case did not go to court and no charges were filed by law enforcement or the CFPB. However, the DRE deemed it as fraud. Will this person be eligible to apply for a new DRE license. The verbiage FRAUD is such a nasty word. Thank you.
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In most jurisdictions, if the Department of Real Estate (DRE) deems a case as fraud, it can significantly impact an individual’s eligibility to apply for a new license. While the absence of criminal charges may suggest a lack of legal consequences, regulatory agencies like the DRE can impose their own standards and restrictions.
Here are some general considerations:
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Determination of Fraud: If the DRE officially classified the actions as fraud, this could result in disqualification from obtaining a new license, regardless of criminal charges.
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Timeframe: Some jurisdictions may allow individuals to reapply for a license after a certain period, especially if they can demonstrate rehabilitation or corrective actions taken.
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Appeal Process: Depending on the specific regulations, there might be an option to appeal the DRE’s decision or seek a hearing to contest the findings.
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Consulting Legal Advice: It’s advisable for the individual to consult with a legal professional or a licensing expert familiar with the DRE’s regulations to understand their specific situation and options.
Ultimately, the specific policies of the DRE and the nature of the fraud will determine eligibility.
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What is the typical timeframe before reapplication is allowed?
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The typical timeframe before reapplication for a DRE license is usually determined by the specific circumstances of the case and the regulations of the state’s Department of Real Estate. However, some general guidelines include:
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Minimum Waiting Period: Many states impose a waiting period of 1 to 3 years after a fraud determination before an individual can reapply.
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Character Rehabilitation: Some jurisdictions may require proof of rehabilitation or corrective actions taken during the waiting period.
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State-Specific Regulations: Each state may have different rules, so it’s essential to check the specific DRE regulations for the state in question.
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Consulting the DRE: For the most accurate and relevant information, contacting the DRE directly or reviewing their official guidelines is advisable.
It’s important to note that these are general trends, and individual cases may vary widely.
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Can you provide links to relevant state DRE websites?
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Below are the links to particular state DRE websites of importance:
California DRE:
California’s website alerts consumers, licensing, and regulations about the DRE.
Illinois DRE:
- It contains useful materials from the real estate branch, such as information on licensing and renewal of licenses.
- These licenses are essential for grasping the particulars of real estate licensing in the United States.
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