July 2010 is a busy month for many states to meet SAFE requirements.  Several state agencies have a deadline of July 30 or July 31 that MLOs must be fully compliant with the SAFE Act. This means they need to meet prelicense education, testing, and background check requirements by the deadline in order to continue working as loan originators.  The NMLS anticipates this deadline could impact over 45,000 mortgage loan originators.

NMLS is guessing that approximately 135,000 mortgage originators will be licensed through the NMLS by the end 2010. So far to date, only about 64,000 individuals have passed the National Component of the SAFE MLO Test. MLOs who do not pass the National and State test components before their state deadline risk having their license terminated.
Looking at the number of LOs that have passed the SAFE Test by month, April and May of this year were big months, with 10,000 – 12,000 loan originators taking the test each month. Of course California, New York, and New Jersey had their deadlines in those months.  June was just under 10,000, but then California kicked their deadline back a couple weeks into June, so I am betting there were quite a few California LOs in that number too. Read the rest of this entry »

It’s July 5th and quite a few more state NMLS deadlines have passed for completing prelicense education, SAFE testing, and criminal background check compliance. June deadlines included Nebraska, Wyoming, California DOC, Kentucky, and Illinois. July 1st deadlines were Virginia and Vermont.

One state in particular ProSchools has been watching is Minnesota.  Their plan was not clear early on.  With passage of Chapter 58A, Minnesota’s transition plan is to certify mortgage loan originators who have completed 20 hours of MN commission-approved courses before July 31, 2010. By getting the hours certified, they may not have to take the NMLS-approved education.

Minnesota loan originators that don’t complete the 20 hours by July 31, 2010, will need to take the 20 hours of NMLS training. The 20 hours has to be completed before a MLO license can be approved. As far as continuing education, the new language in Chapter 58A requires loan originators complete 8 hours of NMLS-approved CE annually. You’ll need to complete the CE in 2011 in order to renew your license for 2012.

In addition to the education, Minnesota loan originators also need to pass both the State and National Components of the SAFE MLO test in order to obtain their license.  The State Component of the test is expected to be available October 1, 2010. Like LOs in other states, Minnesota LOs are encouraged to take the National test now and get that out of the way, even though the State test isn’t available yet.

Bad news: there are 50 states (plus territories) to track NMLS requirements, transition plans, and deadlines. Good news: there seems to be some common themes and practices, making it feel a little easier to grasp. This is where I find Maryland mortgage loan originator requirements.

Like all states, Maryland loan originators must complete 20 hours of NMLS prelicense education, including 3 hours of federal law, 3 hours of ethics, 2 hours of nontraditional loans, however, they must also complete 5 hours of Maryland law.

And like all states, they have to pass the SAFE Mortgage loan Originator Test. It is a 2-part test, a national component and a state component, which can be taken separately. Then there is a bonding requirement, passing a background check, and demonstrating financial responsibility. Read the rest of this entry »