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. Read the rest of this entry »

Everyone will be required to complete 20 hours of NMLS-approved prelicense education, pass both the National and California components of the SAFE Mortgage Loan Originator Test, submit fingerprints for a criminal background check, authorize a credit report through the NMLS, and register with the NMLS.

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:

Read the rest of this entry »

The answer is yes and no.  Current Pennsylvania mortgage loan originators taking the required 20 hours of NMLS prelicense education will not have to do CE to renew this year.

However, according to the Pennsylvania Department of Banking, one individual from each licensed office of a mortgage broker, mortgage lender or mortgage loan correspondent that is not a mortgage originator, unless all of the nonclerical staff of a particular licensed office are licensed as mortgage originators, must complete 8 hours of continuing education. The CE must consist of 3 hours of federal law, 2 hours of ethics, 2 hours of nontraditional mortgage products and 1 hour of Pennsylvania mortgage laws.

ProSchools has two courses approved for CE.  We have a 1 Hour PA Mortgage Lending Compliance Laws CE and an 8 Hour PA SAFE Comprehensive CE course available. Both courses are offered online and are approved by the NMLS.  The SAFE Act requires a minimum of 8 hour CE per year and states can determine if they want to require more hours or require state-specific topics as part of the CE.

Hurray for Washington!! ProSchools’ Washington SAFE Comprehensive Course just got NMLS approval! This course meets the 20-Hour NMLS education requirement for mortgage loan originators in Washington.

Quick review of Washington’s transition plan for mortgage loan originators (to meet NMLS education requirements): Those licensed prior to July 30, 2009 will have until June 30, 2010 to complete all the requirements. If a licensee can show he/she has completed 20 hours of approved education, they won’t have to take the 20-Hour NMLS course.   Read the rest of this entry »

Where do things stand with New Hampshire, in regards to NMLS requirements? New Hampshire passed legislation that went into effect April 1, 2009, requiring all individuals whose activities fall under the legal definition of “loan originator”, to be licensed. So what’s the plan?

All loan originators have to be licensed through the NMLS and must be sponsored by a company that has filed and been approved on the NMLS.  After April 1st, no individual could act as a loan originator without an approved New Hampshire license. Read the rest of this entry »

Tomorrow mortgage loan originators in 11 states can start taking the NMLS exam.  ProSchools has an exam prep available in 7 of those states, the others to be ready shortly.
 
As most of you in the mortgage business know by now, under the SAFE Act loan originators must pass a state and national exam, satisfy prelicense education, and complete annual continuing education. Pearson VUE and Prometric are the NMLS exam providers.  Starting tomorrow, July 30, mortgage originators in Arizona, Idaho, Iowa, Pennsylvania, Vermont, Washington, Rhode Island, Massachusetts, North Carolina, Louisiana, and New Hampshire can take the NMLS exam.  Read the rest of this entry »

A show of hands for those lenders who have recently encountered the auditor! If your records were up to speed, no sweat, right?  For the rest of you, a quick ProSchools’ review may help prepare your office:

When the testing procedure for Oregon’s Entry Level Mortgage Originators changed in 2006, the certificate delivery for Entry Level education changed drastically. As a result, ProSchools received numerous phone calls from office managers and employers who are searching for educational records, in addition to the one provided by AMP, the state designated testing provider. I’m here to help summarize. Read the rest of this entry »

What are the minimum state license standards as a result of the SAFE Act?

The SAFE Act, administrated by the NMLS, requires that any system developed by a state to license individuals to serve in a mortgage lending capacity must have at least the following eight features:

• Screen individuals for no felonies in the last 7 years (certain felonies, like fraud, dishonesty, breach of trust, or money laundering NEVER)
• Screen individuals for no previous license revocations
• Require proof of financial responsibility using a credit report
• Require prelicense testing and education
• Require continuing education
• Provide for license renewals on an annual basis
• Include a bond, net worth or recovery fund

What this means is that states will require background checks, including fingerprinting, and credit checks of individuals seeking licensure. In addition, prelicense education and testing systems and continuing education requirements will be developed and monitored.

Does this mean that current state requirements go away?

No. In fact, the federal law is considered to be the minimum. States may mandate additional licensing or education requirements beyond those required by the SAFE Act.

[Source: Mortgage License Education Requirements in NMLS

Joining the ProSchools real estate and insurance blog family, this mortgage lending blog will cover topics specific to this dynamic industry. We’ll also be passing along relevant information to you about Mortgage Loan Originator licensing requirements in the recently passed S.A.F.E. Act.

Watch this space. Everything you need to know to stay on top of the flood of changes in the mortgage lending industry will be right here!