Verify Loan Officer State Licenses Before Posting Loans

This article explains how to ensure loan officers are properly licensed for the states where borrowers are applying so loans can be posted successfully in the platform.

Summary

• Verify each loan officer has an active, sponsored license in the borrower’s state before posting loans. The loan officer’s license status controls posting ability and the access available to assigned assistants.

Ensure loan officers are licensed for the borrower's state

1. Confirm the loan officer holds an active and sponsored state license for the state where the borrower is applying.
2. Assign loans only to loan officers who meet the required state licensing for that loan’s jurisdiction.

How access and posting behave

• Loan officer assistants (LOAs) mirror the access of the assigned Loan Officer or Branch Manager.
• If the assigned Loan Officer is not licensed in the loan state, attempts to post the loan in LendingPad will fail and return this error: "Active and sponsored state license is needed for this loan. Please submit a support ticket request to update your license, general support/system license updates. If you are a VP and in your branch manager role in Lendingpad, please switch to your loan officer role and try again. Business purpose loan licensing exemptions were updated 2/21/26, please refer to the email Robert sent on 2/20/26 or open the DSCR State Guidelines located in portal.westcaplending.com compliance section."

Procedures to resolve licensing blocks

1. Verify the loan officer’s state license status (active and sponsored).
2. If the license is missing or not active in the required state, submit a support ticket requesting a license update (general support / system license updates).
3. If the user is a VP or branch manager who also holds a loan officer role, switch into the loan officer role in LendingPad and retry posting.
4. For loans that may be affected by business-purpose exemptions, consult the DSCR State Guidelines in the portal compliance section or the referenced internal guidance dated 2/20–2/21/26.

Troubleshooting tips

• If posting fails with the active/sponsored license error, confirm both: the assigned loan officer’s license covers the state, and the user is operating in the correct role (loan officer vs branch manager).
• After updating a license via support, retry posting the loan or have the LOA attempt again; LOA visibility of loan details in Loanzify remains tied to assignment even if posting is blocked.

Conclusion

• Confirming active, sponsored state licenses and assigning loans only to appropriately licensed loan officers prevents posting errors. Use support tickets to update license records and switch roles when necessary to complete posting.