The NMLS has approved five new online CE courses for ProSchools. The courses are intended for mortgage loan originators, meet S.A.F.E. Act requirements, and are all National courses.  Topics and hours:
• 7 Hour SAFE Core
• 8 Hour SAFE Core
• 3 Hour Federal Mortgage Laws CE
• 2 Hour Lending Ethics CE
• 2 Hour Nontraditional Mortgage Products CE.

In addition, ProSchools has an 8 Hour PA SAFE Comprehensive CE and 1 Hour PA Mortgage Lending Laws Compliance CE.
 
The S.A.F.E. Act requires 8 hours of CE annually and there are mandated topics: 3 hours of federal law and regulations, 2 hours ethics, 2 hours of lending standards for non-traditional loans, and 1 hour of elective credit.  Both our 7 and 8 hour Core contain the mandated hours and topics.

Some states require loan originators complete state-specific hours in addition to required hours. ProSchools will have state-specific CE courses to meet that need. 

One thing to note, mortgage loan originators can take multiple courses to reach their 8 hours of CE. However, hours completed will only count for the year in which they are taken. You can’t take some credit hours one year and then hope to carry them over to the next year.  The S.A.F.E. Act also prohibits you from taking the same CE course in successive years.

Each of our CE courses is approved for online home study. 
 
ProSchools continues to field questions about the current pre-license requirements, but there are some states requiring CE by the end of 2010…give us a call if you have questions.  We’re ready for you!!

According to the NMLS, there are several states with immediate deadlines approaching.  Here is a quick look at those states:

- West Virginia – new licensees approved after 7/1/09 must complete testing and education requirements by 1/31/10.

- Montana – new licensees approved after 7/1/09 must complete testing and education requirements by 3/1/10.

- Georgia – all licensees must complete testing and education requirements by 3/31/10.

- Connecticut – licensees who were licensed on or after 7/9/09 must complete the National Component of the test and complete education requirements by 4/1/10.

- Texas SML – all licensees approved after 8/1/09 must complete testing and education requirements by 4/2/10.

- New Jersey – MLO’s with specific license types must complete their testing and education requirements by 4/30/10.

- Pennsylvania – all licenses must complete their testing requirements by 4/30/10.

ProSchools has a National SAFE Comprehensive Course that is available now and will satisfy the 20 hours of NMLS-approved education. If a state requires state-specific content, like New Jersey requires 4 hours of NJ Law, we offer a 20 hour NJ SAFE Comprehensive course that includes the NJ Law.

For those that take our National course, since it contains no state content, ProSchools includes an exam prep to help prepare for the State Component of the SAFE Test. Stay tuned to our website as we get more courses approved.

The 20-hour DC SAFE Comprehensive course satisfies the education required by the District of Columbia’s DISB. We’ve included the required 3 hours of DC Law in the course. Mortgage license applicants must also pass the SAFE Mortgage Loan Originator Test – both the state and national components. For those licensed in multiple states (and have already completed 20 hours & passed the National Test), they would only need to take the 3 hours of DC Law and pass the state component of the SAFE Test.

Transition Plan:  Looks like all DC loan originators need to complete the pre-license education and pass the exams by July 31, 2010.  They also need to furnish fingerprints less than ninety days old to the NMLS for completion of a national criminal history background check. The NMLS recommends starting this process early.  We keep reminding people that there’s a 30-day waiting period to re-take the test if failed. 

One last thing, District of Columbia’s DISB requires anyone applying for a mortgage loan originator license fill out a form called “Clean Hands Before Receiving a License or Permit Act of 1996 Certification Form”.  Whew! I printed out the form and it looks like you are certifying that you do NOT owe more than $100 to the District of Columbia Government as a result of various types of infractions, including littering, illegal dumping, civil infractions, past due taxes, water bills, No-Fault auto insurance, traffic tickets, auto dealer fines, or parking fines. 

Keep checking back for the latest course approvals.  Ohio is submitted and we’re waiting for approval.

Here is a quick look at New York loan originator requirements:

• Article 12-E of the New York Banking Law requires Mortgage Loan Originators to be licensed. To be licensed, you must: Complete 20 hours of NMLS-approved prelicense education. The education must include a minimum of 3 hours of federal law, 3 hours of ethics, 3 hours of New York law and 2 hour related to nontraditional mortgage products.
• Pass a national background and credit check.
• Pass the SAFE Mortgage Loan Originator Test. The SAFE Mortgage Loan Originator test is two exams, a national exam and a state exam, which may be taken separately. Meet bonding requirements.
• Register with the Nationwide Mortgage Licensing Registry (NMLS).

As typical, each state determines their own deadlines to meet the education and testing requirements. According to the NMLS website, the New York deadlines to complete the education and testing requirements are:

• All applicants on or after July 11, 2009 have until May 31, 2010 to complete the 20 hours of NMLS-approved education and pass the National and New York components of the SAFE Mortgage Loan Originator Test.
• Existing licensees approved as of July 11, 2009 have until August 31, 2010 to complete the 20 hours of NMLS-approved education and pass the National and New York components of the SAFE Mortgage Loan Originator Test.
• Anyone that filed an application prior to July 11, 2009 that has not been approved, withdrawn or denied has until May 31, 2010 to complete the 20 hours of NMLS-approved education and pass the National and New York components of the SAFE Mortgage Loan Originator Test.

There seems to be a distinction between having an application approved and having filed an application. If you aren’t sure, be sure to call the State of New York Banking Department.

ProSchools just got the New Jersey SAFE Comprehensive course approved! 

Requirements for New Jersey loan originators look familiar.  To be licenced, they need to complete 20 hours of NMLS-approved prelicense education, pass a national background and credit check, pass the SAFE Mortgage Loan Originator Test, and register with the Nationwide Mortgage Licensing Registry (NMLS).
I read recently there are up to 22,000 loan originators in New Jersey needing to be licensed. To make it an orderly transition, the transition and deadlines to complete the education and pass the SAFE test is being rolled out in three phases.
•New applicants on or after January 4, 2010 must complete the education and pass the SAFE Mortgage Loan Originator Test prior to applying.
•Existing individual licensees and sole proprietors must complete the education and pass the SAFE Mortgage Loan Originator Test by April 30, 2010.
•Existing mortgage solicitor registrants must complete the education and pass both the SAFE Mortgage Loan Originator Test by May 15, 2010.

Our course has an exam prep build in that should help people prepare for the SAFE Test.  The 4 hours of required New Jersey law is included in the 20 hour course.  We also have the 4 hour NJ Laws approved as a separate course for anyone just needing the NJ Laws.

So far ProSchools has courses approved by the NMLS for Arizona, Idaho, Iowa, Kentucky, Louisiana, Massachusetts, Michigan, New Hampshire, New Jersey, Pennsylvania, Rhode Island, Vermont, Virginia, and Washington. 

We also have a National SAFE course that is approved by the NMLS and is good in any state, however, it does not contain state laws. All courses with state information will help prepare people for both the national and state component of the SAFE Test.  The National course will only prepare someone for the national component.

Looks like starting January 4, 2010, the California Department of Corporations will implement Senate Bill 36, getting California mortgage originators in compliance with the SAFE Act passed in 2008.  The SAFE Act requires all mortgage loan originators to be licensed through the NMLS. 

Who needs the license?  Anyone who provides services as a mortgage loan originator in California needs to apply for and get a license by July 31, 2010. We’re told there’s an estimated 45-50,000 people needing to get licensed.

Each mortgage loan originator applicant needs to submit a completed Form MU4 through the NMLS. Their license won’t be approved until a sponsorship request is submitted by the their employer. 

California wants LOs to submit all their paperwork by May 28, 2010 in order to give the DOC enough time to review and process the applications. They will receive an “Approved-Conditional” license status once the MU4 filing is reviewed by the DOC and all the other license requirements are met.  In order to receive full ”Approval” status, the mortgage loan originator must have all requirements met by July 31, 2010.

Here is a check list of what CA loan originators need to do prior to the 7/31/2010 deadline:
•Complete 20 hours of NMLS-appoved education.
•Pass the National and California components of the SAFE test.
•Pass a background check, including fingerprints.
•Authorize an independent credit report.
•Be sponsored in NMLS by the employing company.

Couple of other things regarding the SAFE Test…the state portion of the test will be available by February 22, 2010 and people can enroll for the test starting January 22, 2010.

ProSchools has a 20-Hour NMLS-approved course available for someone that wants to get their education done now. They would need an exam prep for the California component, which ProSchools will have by January (we include it free with the National course). Even though California does not require state-specific hours as part of the education, ProSchools is developing a 20-Hour California SAFE Comprehensive course which includes state-specific information to help LOs prepare for the SAFE Test.

California mortgage loan originators will also need to take 8 hours of continuing education to renew their license annually by December 31.  But don’t worry about CE for now…get your 20 hour pre-license course done early!

According to a table on the Conference of State Bank Supervisor’s website, the number of Mortgage Loan Originators (MLOs) in New Jersey likely needing the NMLS education and SAFE test is estimated at over 22,000. Quite a large group! Of course not everyone will maintain their license.

Here’s a summary of the New Jersey NMLS education and testing requirements, plus deadlines. They fall into three categories:
•New loan originator applicants on or after January 4, 2010 will need to complete the education and pass both the National and New Jersey components of the SAFE Mortgage Loan Originator test prior to applying.
•Existing individual licensees and sole proprietors must complete the education and pass both the National and New Jersey components of the SAFE Mortgage Loan Originator Test by April 30, 2010.
•Existing mortgage solicitor registrants must complete the education and pass both the National and New Jersey components of the SAFE Mortgage Loan Originator Test by May 15, 2010.
 
New Jersey requires a minimum of 4 hours of New Jersey law in the 20 hour course. ProSchools has submitted the course and expects course approval soon.  Loan originators are encouraged to begin the prelicense and testing early.

There are 100 questions on the National component (90 scored) and there are 60 questions on the New Jersey component (50 scored). The New Jersey exam will cover 1) New Jersey Department of Banking and Insurance (5%); 2) State law and Regulation Definitions (10%); 3) New Jersey Residential Mortgage Lending Act and Regulations (20%); 4) Compliance (45%); 5) Disciplinary action (10%); 6) Unique State Test Areas (5%). Looks like “compliance” is weighed pretty heavy.

ProSchools will let you know as soon as we get NMLS approval for our 20 hour New Jersey course! ProSchools also submitted the New Jersey Laws as a separate 4 hour course.  The required 4 hours of New Jersey law is contained within the 20 hour course.

To date, ProSchools has received NMLS approval for the 20-Hour SAFE course in 15 states:  Arizona, Idaho, Kentucky, Louisiana, Massachusetts, Michigan, New Hampshire, Pennsylvania, Rhode Island, Vermont, Virginia, Washington, Iowa, Maryland, and Georgia. Each of these 20-hour courses contains state-specific laws. We also have the 20-Hour SAFE Comprehensive course approved without state laws.  Any loan originator in the country could take that course right now.

We also have state-specific law courses approved.  Those courses include 2 hours - Idaho law, 3 hours-Pennsylvania Law, 2 hours-Washington Law, 3 hours-Rhode Island Law, and 4 hours-Arizona Law.

We are getting quite a few calls from loan originators licensed in multiple states. Try this handy chart to see all the NMLS courses by state. This can feel complex, but I think it’s a matter of separating the NMLS education requirements from the testing requirements and then going from there.

For example, a loan originator licensed in Pennsylvania and Arizona. Start by looking at the education: a person could take the Pennsylvania SAFE Comprehensive course (it contains 3 hours of Pennsylvania Law), and then they only need the 4 hours of Arizona Law. They do not have to take another 20 hour course.

Regarding the SAFE Test, if they have passed the National Component, they only need to pass that test once.  They will, however, need to pass the State Component for each state they are licensed in.  Where it gets complex is that some states have already had a license exam in place for mortgage originators and in those states, the State Component might be waived.  Give us a call if you need help!

PR: wait… I: wait… L: wait… LD: wait… I: wait… wait… Rank: wait… Traffic: wait… C: wait…

The deadlines to complete the requirements depends on if you are an employee of a California Finance Lender, Residential Mortgage Lender or are a Real Estate licensee.

Employees of a California Finance Lender or Residential Mortgage Lender are regulated by the Department of Corporations and must do the following by May 28, 2010:

1.Complete 20 hours of NMLS-approved prelicense education.

2.Pass the SAFE Mortgage Loan Originator Test. The SAFE Mortgage Loan Originator test is actually two exams, a national exam and a state exam, which may be taken separately.

3.Register with the Nationwide Mortgage Licensing Registry (NMLS).

If you are an existing real licensee and conduct loan origination activities you are regulated by the Department of Real Estate and must do the following by December 31, 2010:

1.Complete 20 hours of NMLS-approved prelicense education. NOTE: This is only required for new applicants on or after January 2, 2011. Existing real estate licensees will not need the 20 hours of NMLS-approved education if all other requirements are met by December 31, 2010.

2.Pass a national background and credit check.

3.Pass the SAFE Mortgage Loan Originator Test. The SAFE Mortgage Loan Originator test is actually two exams, a national exam and a state exam, which may be taken separately.

4.Register with the Nationwide Mortgage Licensing Registry (NMLS).
ProSchools has the 20 hours of NMLS-approved prelicense education and exam prep for the National component of the SAFE Mortgage Loan Originator Test.

Check out ProSchools’ California mortgage courses.

The deadline to pass the exams is now April 30, 2010. Extending the deadline will allow an individual who does not pass their exam an opportunity to retake the exam and still be in compliance.

The SAFE Act allows individuals four opportunities to take each of the test components. However, you must wait 30 days between each attempt. If an individual does not pass after all four opportunities then the SAFE test cannot be retaken for six month.

The main theme I think that can be learned from this is that states might be more willing to extend the testing deadlines because of the retake policy and test availability, but may not budge on the education deadlines! ProSchools, an NMLS-approved provider, has taken lots of calls from Pennsylvania loan originators concerned about the end of year deadline. Some people are not aware of the change, so we are trying to get the word out.