The wheels keeping turning at ProSchools where our focus is getting all the state-required hours approved and offering exam prep courses where there are no mandated state hours.

We are waiting for approval on the 4-hour Ohio mortgage laws and the 4-hour Mississippi laws. ProSchools submitted the courses awhile ago but there are new Functional Specifications for NMLS Approved Instructor Online-Led Courses and all courses submitted now and in the future must meet this new standard.  Once we get the Ohio Laws and MS Laws approved by the NMLS, we will have a course for every state requiring state-specific hours. Read the rest of this entry »

Imagine trying to keep it all straight –50 different deadlines with state-specific variations…and then you find a website that does it for you!! The NMLS has a great resource –the MLO SAFE Compliant Requirements Chart. It’s been around for a few months, but it really helps us monitor all the SAFE Act requirements and state-specific deadlines for loan originator across the country.

The best part is the NMLS updates the chart often, sometimes daily, so it’s very current. I try to keep track of what I see as major changes and updates, and then go to the state’s website to get all the details of the implementation plan. Often the state website posts a letter to licensees or a summary of their newly passed legislation.

One of my observations over the past month is that a lot of states have added language about certifying education hours or certifying the State Component of the test. What this means is loan originators that took 20 approved education hours in the past might get the 20 NMLS hours waived. If a loan originator passed a state test in the past, and that test meets certain testing standards, the LO might not have to take the State Component of the SAFE Test. No one gets out of taking the National component, however.

Here is a list of states that have updated certification information on the NMLS Chart:  Arizona, Alaska, California DRE, Colorado, Indiana SOS, Iowa, Florida, Idaho, Kentucky, Kansas, Massachusetts, Maryland, Michigan, Mississippi, Montana, North Carolina, New Jersey, New York, Ohio, Oklahoma, Oregon, Rhode Island, South Carolina DCA, South Dakota, Texas, Utah, Washington, Wisconsin, and West Virginia. ProSchools’ understanding is that there will be a total of 35 states certifying education and/or the SAFE Test, so that leaves 6 more to follow.  Will keep you posted.

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

ProSchools has the Virginia S.A.F.E. Comprehensive Course approved by the NMLS and available.  Virginia’s educational requirements are very close to the SAFE Act, requiring at least 20 hours of education approved by the NMLS. Mortgage loan originators have to take at least 3 hours of federal law, 3 hours of ethics, and 2 hours related to nontraditional mortgage products.

ProSchools’ course contains Virginia laws (usually 2-3 chapters) to help loan originators prepare for the state component of the S.A.F.E. test. The rest of the course contains national topics that will help people prepare for the national component of the exam.

As of July 1, 2010, all Virginia loan originators need to be licensed and can only apply for a Virginia MLO license by filing Form MU4 through the NMLS. If you already filed this form in another state, you do not need to do it again. 

Read the rest of this entry »

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 »

Some states feel like they are a long ways off before needing to complete NMLS requirements.  Vermont feels like one of those states, but we’re getting calls, so here is a quick re-cap of what Vermont mortgage loan originators should expect.

Vermont mortgage loan originators need to:

• Complete at least 20 hours of NMLS-approved prelicense education.  Like all states, the hours must include at least (3) hours of federal laws and regulations; (2) hours of ethics, including instruction on fraud, consumer protection, and fair lending; and (2) hours related to lending standards for the nontraditional mortgage product marketplace.
• 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. ProSchools recommends that you take your course first, and then take your test, but you can complete the requirements in any order.
• Submit fingerprints to the NMLS. It is anticipated that you can begin submitting fingerprints to the NMLS November 1, 2009.
• Meet bonding requirements. The bonding requirement is a graduated dollar amount based upon the amount of loans originated in Vermont.
• Demonstrate financial responsibility, experience, character and general fitness. Plan on submitting your personal history and experience information to the NMLS. Credit reports and credit scores will also be reviewed. Read the rest of this entry »
  Tags: mortgage license, NMLS education, NMLS exam, NMLS requirements, SAFE Act, SAFE Comprehensive course, Vermont loan officers, Vermont mortgage brokers, Vermont mortgage loan originators

ProSchools has submitted a lot of courses for NMLS approval over the past month.  Approvals are rolling in now!

Our strategy is to submit a 20-hour course for each state and include the state-specific laws within the course. This serves two purposes: 1) loan originators in that state will fulfill the 20 hours for NMLS, and 2) the state laws, whether required as part of the education or not, will help LOs pass the state component of the SAFE MLO Test. Read the rest of this entry »

Are you staying caught up with the latest NMLS states and approvals?  We’ve been moving fast!! ProSchools has quickly developed and submitted mortgage courses to meet the new 20-hour S.A.F.E. Act requirements as regulated by the NMLS. To date, we’ve received approval for the 20-hour course in Arizona, Idaho, Louisiana, Michigan, Pennsylvania, Rhode Island, Vermont, Virginia, and Washington.

We’ve submitted courses for Iowa, New Hampshire, Massachusetts, and Kentucky and we’re waiting on NMLS-approvals.

What’s in an NMLS course? Read the rest of this entry »

How’s that for a blunt question?   As I promised awhile back, I’m having our Course Consultants here at ProSchools keep track of interesting questions they receive about the upcoming NMLS license exams which are part of the S.A.F.E. Mortgage License Act.  Remember, all mortgage loan originators (MLOs) will need to pass a national license exam, as well as a state exam for each state they wish to be licensed in. 

As most of you know, the first group of states will start actual testing in August and mortgage loan originators and those seeking a license in those states can now log into the NMLS and register to take the exam.  Read the rest of this entry »

So, it’s official — Pearson VUE will be developing the exam that every mortgage loan originator or MLO will have to take (yes, I said “every”). 19 states are up first for the testing and the new rules (which also include mandatory education). The states are listed below. If you are a loan originator in any of these states, expect to be first up for the new mortgage license exam. The mortgage test will cover both federal and state topics. FINRA (the securities licensing people) will be keeping track of it all. They are also managing the National Mortgage Licensing System (NMLS). They have a web-based system that will keep track of every mortgage loan originator in the country. I know this sounds overwhelming but things are off to a pretty good start. Yes, you loan originators are going to have to hit the books. You’ll need 20 hours of education, as well as having passed the exam to keep working after a certain date. I think the latest date you can complete is January 1, 2011 but I’m not yet sure. The first SAFE tests are expected to be developed and delivered by July 30, 2009 which is coming right up.

Here are the 19 states that are in the NMLS now, and will be up first for the national mortgage license requirements:

1. Arizona
2. Connecticut
3. Delaware
4. Georgia
5. Idaho
6. Iowa
7. Kentucky
8. Louisiana
9. Massachusetts
10. Michigan
11. Mississippi
12. Nebraska
13. New Hampshire
14. New York
15. North Carolina
16. Rhode Island
17. Tennessee
18. Vermont
19. Washington

Yes, things are moving fast…..stay tuned for more details.

So, here’s the deal. Depending on your state’s time line, if you want to keep your job as a loan originator (which is a very broad category of mortgage professionals under the S.A.F.E. Act) you will need to meet new education requirements. You must have accumulated 20 hours of pre-license education (by January 2011 in Washington – similar time line in many other states) and it must include at least 8 hours on the following topics:

• 3 hours of federal law and regulations
• 3 hours of ethics (which must cover fraud, consumer protection, and fair lending)
• 2 hours of training related to lending standards for the nontraditional mortgage product marketplace

The remaining 12 hours can be electives.

Courses will be approved by a contractor selected by the National Mortgage Licensing System (NMLS) which looks to be the test developer Pearson Vue (looks like these guys will write the exam and approve/manage the courses). FINRA, the same folks who manage the securities licensing, will be responsible for test administration and the NMLS administrative work. I know Washington just sent notice to it’s educational providers that they need to comply with the course content of SAFE in their courses. So, this ball is rolling and this thing is going to pick up momentum quickly. I know lots of people in the mortgage business try to “look the other way” on these kind of regulations, but this isn’t one you want to do anything but comply, comply, comply. No mortgage license and you are out of business!

We’ll keep you posted as this unfolds…