Showing posts with label nationwide mortgage license system. Show all posts
Showing posts with label nationwide mortgage license system. Show all posts
Monday, September 13, 2010
Is Your State License Renewing Through the NMLS?
I have recently received communications from a few states that require license renewals soon but either all or part of the renewal process must be done directly through the regulatory agency, and not through the Nationwide Mortgage Licensing System (NMLS). For some states, you need to submit some documentation before the renewal process starts or submit an entire license renewal application and all of its supporting documentation to the agency which granted your license approval. If you are in one of these states, you should have received these communications already. To ensure that you are not in one of the states that renews licenses outside of the NMLS process, call or email your state regulatory agency to confirm that there is nothing that you need to do before renewals through the NMLS start on November 1, 2010.
Monday, March 29, 2010
Keeping Up With the Your State’s Transition to the NMLS
Most of the states have fully transitioned their licensing to the Nationwide Mortgage Licensing System (NMLS). But other states have transitioned only parts of their licensing – either they use the NMLS for the mortgage loan originator (MLO) licensing and company licenses are still done through the state banking department (or whatever the state calls the agency who is responsible for mortgage industry licensing) or the company and branch licenses are done through the NMLS and the MLO licensing will transition at a later date.
You must keep up with the NMLS transition requirements for each state in which you are licensed. If you don’t and you miss the transition deadline, you are treated as a new applicant and you will undergo a full application process and pay the higher fees that a new application requires. The NMLS website (http://mortgage.nationwidelicensingsystem.org/Pages/default.aspx) has a “State Licensing News” section which updates all state transitioning information. You can also check with the websites of each state agency that licenses mortgage bankers, mortgages brokers and loan originators. If the state which licenses you has a mailing list, sign up for it. You will get newsletters or emails that keep you up-to-date with the latest information from that state, with little effort on your part (as long as you read the newsletters and emails).
On March 31, 2010, Oregon (company and branch licenses), Illinois (company and branch licenses), and Wisconsin (all licenses) finish their transitions for the licenses listed. If you are licensed in any one of these 3 states, get your transition for these licenses completed by the end of this month. Again, you need to keep aware of when the other licenses start their transitions in Oregon and Illinois and how to deal with new applications.
Please feel free to forward this blog post to your colleagues, listserv members or favorite bloggers. Or if you would like to run it (in whole or in part) in any publication or quote from it, simply include my name and URL: http://www.mortgagelicensesolutions.com. No prior permission needed. To inquire about joining my list to receive my blog posts or my availability to speak to your group or write an article for your publication, please email me at Robin@Mortgagelicensesolutions.com. Thank you!
You must keep up with the NMLS transition requirements for each state in which you are licensed. If you don’t and you miss the transition deadline, you are treated as a new applicant and you will undergo a full application process and pay the higher fees that a new application requires. The NMLS website (http://mortgage.nationwidelicensingsystem.org/Pages/default.aspx) has a “State Licensing News” section which updates all state transitioning information. You can also check with the websites of each state agency that licenses mortgage bankers, mortgages brokers and loan originators. If the state which licenses you has a mailing list, sign up for it. You will get newsletters or emails that keep you up-to-date with the latest information from that state, with little effort on your part (as long as you read the newsletters and emails).
On March 31, 2010, Oregon (company and branch licenses), Illinois (company and branch licenses), and Wisconsin (all licenses) finish their transitions for the licenses listed. If you are licensed in any one of these 3 states, get your transition for these licenses completed by the end of this month. Again, you need to keep aware of when the other licenses start their transitions in Oregon and Illinois and how to deal with new applications.
Please feel free to forward this blog post to your colleagues, listserv members or favorite bloggers. Or if you would like to run it (in whole or in part) in any publication or quote from it, simply include my name and URL: http://www.mortgagelicensesolutions.com. No prior permission needed. To inquire about joining my list to receive my blog posts or my availability to speak to your group or write an article for your publication, please email me at Robin@Mortgagelicensesolutions.com. Thank you!
Tuesday, February 9, 2010
Fingerprinting on the NMLS
The Nationwide Mortgage Licensing System (NMLS) has opened up the ability to get your fingerprints done through their system. All states’ SAFE Acts, which govern the requirements of loan originator licensing, require federal criminal background checks to be conducted by the FBI. The NMLS now permits you to input the information that the FBI needs to run the background check. There is a fee for the background check which must be paid through the NMLS. You also schedule an appointment to have your fingerprints taken by an approved vendor. Your fingerprints will become part of your NMLS record but that part of your record is not allowed to be seen by the public. In many states, you must also have a background check run by your state police.
Many times, a client has told me that they can answer “no” to all of the criminal background disclosure questions even though they have been arrested in the past. The FBI and state criminal background searches show all arrests, even if your criminal record has been expunged, even if you received probation only, or other reasons that your criminal attorney told you that you could state that you had no criminal background. If you answer “no” to all of the disclosure questions, and you have been arrested in the past, you run the risk of having to explain why you have an arrest in your background check that you did not disclose. Now your honesty is in question, as well as the circumstances of the arrest. When in doubt, answer the disclosure question “yes” and send a letter of explanation to your state regulators.
Please feel free to forward this blog post to your colleagues, listserv members or favorite bloggers. Or if you would like to run it (in whole or in part) in any publication or quote from it, simply include my name and URL: http://www.mortgagelicensesolutions.com. No prior permission needed. To inquire about joining my list to receive my blog posts or my availability to speak to your group or write an article for your publication, please email me at Robin@Mortgagelicensesolutions.com. Thank you!
Many times, a client has told me that they can answer “no” to all of the criminal background disclosure questions even though they have been arrested in the past. The FBI and state criminal background searches show all arrests, even if your criminal record has been expunged, even if you received probation only, or other reasons that your criminal attorney told you that you could state that you had no criminal background. If you answer “no” to all of the disclosure questions, and you have been arrested in the past, you run the risk of having to explain why you have an arrest in your background check that you did not disclose. Now your honesty is in question, as well as the circumstances of the arrest. When in doubt, answer the disclosure question “yes” and send a letter of explanation to your state regulators.
Please feel free to forward this blog post to your colleagues, listserv members or favorite bloggers. Or if you would like to run it (in whole or in part) in any publication or quote from it, simply include my name and URL: http://www.mortgagelicensesolutions.com. No prior permission needed. To inquire about joining my list to receive my blog posts or my availability to speak to your group or write an article for your publication, please email me at Robin@Mortgagelicensesolutions.com. Thank you!
Friday, December 18, 2009
Be Proactive About NMLS Requirements
A number of states are joining the Nationwide Mortgage License System (NMLS) on January 4, 2010. For all of those states, 20 hours of pre-licensing education and passing an exam with a 75% passing rate is required before you can get approved for a loan originator license.
For some of us, the week before or after Christmas is a slow time in the office. For others of us, January is the time when the phones aren’t ringing so often. During your slow periods, if you are in one of the states that is transitioning to the NMLS in January, 2010, get ahead of the curve and start taking your 20 hours of pre-licensing education. And then sign up for the NMLS tests, both the national component (if you haven’t already taken it for another state) and the state component.
When you sign up for your 20 hours of pre-licensing education, you need to give the course provider your NMLS identification number. If you don’t have one yet, just go to this NMLS web page: https://www.statemortgageregistry.com/Public/Default.aspx and click on “Create an Individual Account.” When you create your account, the NMLS will assign to you a user name, a password, and an NMLS identification number. You will use that same NMLS number for every state in which you will be licensed for as long as the NMLS exists. The password that you receive will be a temporary password and then you can change it to one that you will remember.
Until January 4, 2010, you cannot input the information to create your own MU4 record in the NMLS but if you have the time to get your education hours in and take the test, you will not be scrambling to fulfill those requirements when your pipeline gets full.
Please feel free to forward this blog post to your colleagues, listserv members or favorite bloggers. Or if you would like to run it (in whole or in part) in any publication or quote from it, simply include my name and URL: http://www.mortgagelicensesolutions.com. No prior permission needed. To inquire about joining my list to receive my blog posts or my availability to speak to your group or write an article for your publication, please email me at Robin@Mortgagelicensesolutions.com. Thank you!
For some of us, the week before or after Christmas is a slow time in the office. For others of us, January is the time when the phones aren’t ringing so often. During your slow periods, if you are in one of the states that is transitioning to the NMLS in January, 2010, get ahead of the curve and start taking your 20 hours of pre-licensing education. And then sign up for the NMLS tests, both the national component (if you haven’t already taken it for another state) and the state component.
When you sign up for your 20 hours of pre-licensing education, you need to give the course provider your NMLS identification number. If you don’t have one yet, just go to this NMLS web page: https://www.statemortgageregistry.com/Public/Default.aspx and click on “Create an Individual Account.” When you create your account, the NMLS will assign to you a user name, a password, and an NMLS identification number. You will use that same NMLS number for every state in which you will be licensed for as long as the NMLS exists. The password that you receive will be a temporary password and then you can change it to one that you will remember.
Until January 4, 2010, you cannot input the information to create your own MU4 record in the NMLS but if you have the time to get your education hours in and take the test, you will not be scrambling to fulfill those requirements when your pipeline gets full.
Please feel free to forward this blog post to your colleagues, listserv members or favorite bloggers. Or if you would like to run it (in whole or in part) in any publication or quote from it, simply include my name and URL: http://www.mortgagelicensesolutions.com. No prior permission needed. To inquire about joining my list to receive my blog posts or my availability to speak to your group or write an article for your publication, please email me at Robin@Mortgagelicensesolutions.com. Thank you!
Friday, November 20, 2009
Updated Loan Originator Licensing Requirements On One Chart
The Nationwide Mortgage License System (NMLS) has just posted a new chart of each state’s deadline for certain requirements that mortgage loan originators must meet in order to be SAFE compliant. Title V of the Housing and Economic Recovery Act of 2008 (H.E.R.A.), “the SAFE Act”, became effective July 30, 2009 and mandates that state-licensed mortgage loan originators meet certain minimum requirements for licensure. The NMLS does issue a disclaimer that not all requirements are on the chart (for example some states require surety bonds for loan originators). Always check with your state’s regulatory agency in charge of licensing loan originators to find out all of your licensing requirements. Or you can retain an attorney or company that helps loan originators get their licenses.
The NMLS chart does present an updated list of deadlines for the main requirements – pre-licensing education, continuing education, testing for loan originators, credit reports and criminal background checks. It’s very helpful for loan originators who are or want to be licensed in more than one state. Check it out at this URL:
http://mortgage.nationwidelicensingsystem.org/profreq/Documents/SAFE%20Compliant%20Requirements.pdf
Please feel free to forward this blog post to your colleagues, listserv members or favorite bloggers. Or if you would like to run it (in whole or in part) in any publication or quote from it, simply include my name and URL: http://www.mortgagelicensesolutions.com. No prior permission needed. To inquire about joining my list to receive my blog posts or my availability to speak to your group or write an article for your publication, please email me at Robin@Mortgagelicensesolutions.com. Thank you!
The NMLS chart does present an updated list of deadlines for the main requirements – pre-licensing education, continuing education, testing for loan originators, credit reports and criminal background checks. It’s very helpful for loan originators who are or want to be licensed in more than one state. Check it out at this URL:
http://mortgage.nationwidelicensingsystem.org/profreq/Documents/SAFE%20Compliant%20Requirements.pdf
Please feel free to forward this blog post to your colleagues, listserv members or favorite bloggers. Or if you would like to run it (in whole or in part) in any publication or quote from it, simply include my name and URL: http://www.mortgagelicensesolutions.com. No prior permission needed. To inquire about joining my list to receive my blog posts or my availability to speak to your group or write an article for your publication, please email me at Robin@Mortgagelicensesolutions.com. Thank you!
Friday, September 25, 2009
Do You Still Need to Take North Carolina Pre-Licensing Education? Maybe Not.
North Carolina has prepared a chart for licensed loan originators to help answer questions they may have about the required pre-licensing education. If you are already a licensed loan originator in North Carolina, you were required to take pre-licensing education before your license application was approved and continuing education each year in order to get your licensed renewed and report that education to the North Carolina Commissioner of Banks. North Carolina is counting those hours towards the required 20 hours of pre-licensing education. Accordingly, if you have been licensed for more than two (2) years, you should have completed the 20 hours already. However, even if you have completed the 20 hours of pre-licensing education, you still need to take eight (8) hours of continuing education before you can renew your license this year (renewals through the Nationwide Mortgage License System (NMLS) start on November 1, 2009). You have until December 31, 2009 to take the pre-licensing education or continuing education.
If you are licensed in another state that has already transitioned onto the NMLS and have completed your twenty (20) hours of pre-licensing education in another state, you will not have to take additional hours of pre-licensing education for North Carolina. But to renew your license, you will need to take your eight (8) hours of continuing education.
The chart is available on the North Carolina Commissioner of Banks’ website here:
http://www.nccob.org/NR/rdonlyres/8D26CEAF-53C4-4104-A688-05A17E9C8651/0/CertificationChart92309.pdf
If you are applying for a new North Carolina loan originator license, you must take twenty-four (24) hours of pre-licensing education before your license application will be approved.
Please feel free to forward this blog post to your colleagues, listserv members or favorite bloggers. Or if you would like to run it (in whole or in part) in any publication or quote from it, simply include my name and URL: http://www.mortgagelicensesolutions.com. No prior permission needed. To inquire about joining my list to receive my blog posts or my availability to speak to your group or write an article for your publication, please email me at Robin@Mortgagelicensesolutions.com. Thank you!
If you are licensed in another state that has already transitioned onto the NMLS and have completed your twenty (20) hours of pre-licensing education in another state, you will not have to take additional hours of pre-licensing education for North Carolina. But to renew your license, you will need to take your eight (8) hours of continuing education.
The chart is available on the North Carolina Commissioner of Banks’ website here:
http://www.nccob.org/NR/rdonlyres/8D26CEAF-53C4-4104-A688-05A17E9C8651/0/CertificationChart92309.pdf
If you are applying for a new North Carolina loan originator license, you must take twenty-four (24) hours of pre-licensing education before your license application will be approved.
Please feel free to forward this blog post to your colleagues, listserv members or favorite bloggers. Or if you would like to run it (in whole or in part) in any publication or quote from it, simply include my name and URL: http://www.mortgagelicensesolutions.com. No prior permission needed. To inquire about joining my list to receive my blog posts or my availability to speak to your group or write an article for your publication, please email me at Robin@Mortgagelicensesolutions.com. Thank you!
Wednesday, September 16, 2009
What is on the Mortgage Loan Originator Tests?
All loan officers who are required to become licensed as mortgage loan originators in every state in which they wish to do business must pass a state exam. You must also pass a national test in order to get your license. If you want to be licensed in two states, you take the national test once, and the state test in the two states in which you intend to be licensed.
The NMLS has posted the course outlines for some of the states on its website:
http://www.stateregulatoryregistry.org/NMLS/AM/Template.cfm?Section=Testing&Template=/CM/HTMLDisplay.cfm&ContentID=24885
As of September 16, 2009, the following states have posted their test course outlines: Georgia, Maryland, Kentucky, District of Columbia, Wyoming, New Jersey, Virginia, Arizona, Idaho, Iowa, Louisiana, New Hampshire, North Carolina, Pennsylvania, Rhode Island, Vermont, and Washington. The National test course outline is also posted on the NMLS website. Massachusetts has posted its course outline but since the test is being revised, the course outline that is posted on the NMLS may be changed as well.
The course outlines are fairly short and just give you the briefest description of what will be tested. For example, the Maryland test has 55 questions, but only 45 questions will be scored. Five per cent (5%) of the test is on the Department of Labor, Licensing and Regulation, Division of Financial Regulation's structure and function. Ten per cent (10%) of the test is on definitions in the various laws that govern the licensing requirements for Maryland loan originators. Twenty five per cent (25%) of the test is about License Law and Regulations and covers who needs to be licensed (both in-state and out-of-state), the qualifications that the loan originator needs, the ground for denying the application, and what needs to be done to maintain the license (such as continuing education and conduct). Half (50%) of the test is about compliance and which types of activities are prohibited, what kind of advertising is not permitted, and what fees and charges are allowed or not allowed. The final ten per cent (10%) of the test covers the discliplinary process if you are not in compliance.
Each state has a slightly different outline so you need to review your state's outline (and the outline for all other states in which you wish to be licensed) to make sure that you know the information that will be tested. You do not need the take the required 20 hours of pre-licensing edcuation before you take the tests.
The NMLS has posted the course outlines for some of the states on its website:
http://www.stateregulatoryregistry.org/NMLS/AM/Template.cfm?Section=Testing&Template=/CM/HTMLDisplay.cfm&ContentID=24885
As of September 16, 2009, the following states have posted their test course outlines: Georgia, Maryland, Kentucky, District of Columbia, Wyoming, New Jersey, Virginia, Arizona, Idaho, Iowa, Louisiana, New Hampshire, North Carolina, Pennsylvania, Rhode Island, Vermont, and Washington. The National test course outline is also posted on the NMLS website. Massachusetts has posted its course outline but since the test is being revised, the course outline that is posted on the NMLS may be changed as well.
The course outlines are fairly short and just give you the briefest description of what will be tested. For example, the Maryland test has 55 questions, but only 45 questions will be scored. Five per cent (5%) of the test is on the Department of Labor, Licensing and Regulation, Division of Financial Regulation's structure and function. Ten per cent (10%) of the test is on definitions in the various laws that govern the licensing requirements for Maryland loan originators. Twenty five per cent (25%) of the test is about License Law and Regulations and covers who needs to be licensed (both in-state and out-of-state), the qualifications that the loan originator needs, the ground for denying the application, and what needs to be done to maintain the license (such as continuing education and conduct). Half (50%) of the test is about compliance and which types of activities are prohibited, what kind of advertising is not permitted, and what fees and charges are allowed or not allowed. The final ten per cent (10%) of the test covers the discliplinary process if you are not in compliance.
Each state has a slightly different outline so you need to review your state's outline (and the outline for all other states in which you wish to be licensed) to make sure that you know the information that will be tested. You do not need the take the required 20 hours of pre-licensing edcuation before you take the tests.
Friday, September 4, 2009
NMLS Pre-Licensing Education Approved Providers
The federal SAFE Act, as implemented by each state, requires 20 hours of pre-licensing education. Until recently, the Nationwide Mortgage Licensing System (NMLS) had not approved education providers and therefore the states could not actually require you to fulfill the education requirement in order to approve your being licensed as a loan originator.
NMLS is currently prioritizing approving the pre-licensure education courses for the states of AZ, IA, ID, LA, MA, MD, NH, NC, PA, RI, VA ,VT, and WA. It has also posted a list of approved course providers: http://www.stateregulatoryregistry.org/AM/Template.cfm?Section=Course_Providers&Template=/CM/ContentDisplay.cfm&ContentID=24045
This list is current as of August 31, 2009 and will be updated every Monday. You must take your pre-licensing courses from a provider which is on the NMLS list or the coursework will not fulfill the requirements of your state licensing statute. You do not need to take your 20 hours of pre-licensing education before you take the required test but at some point, you must complete the coursework.
Please feel free to forward this blog post to your colleagues, listserv members or favorite bloggers. Or if you would like to run it (in whole or in part) in any publication or quote from it, simply include my name and URL: http://www.mortgagelicensesolutions.com. No prior permission needed. To inquire about joining my list to receive my blog posts or my availability to speak to your group or write an article for your publication, please email me at Robin@Mortgagelicensesolutions.com. Thank you!
NMLS is currently prioritizing approving the pre-licensure education courses for the states of AZ, IA, ID, LA, MA, MD, NH, NC, PA, RI, VA ,VT, and WA. It has also posted a list of approved course providers: http://www.stateregulatoryregistry.org/AM/Template.cfm?Section=Course_Providers&Template=/CM/ContentDisplay.cfm&ContentID=24045
This list is current as of August 31, 2009 and will be updated every Monday. You must take your pre-licensing courses from a provider which is on the NMLS list or the coursework will not fulfill the requirements of your state licensing statute. You do not need to take your 20 hours of pre-licensing education before you take the required test but at some point, you must complete the coursework.
Please feel free to forward this blog post to your colleagues, listserv members or favorite bloggers. Or if you would like to run it (in whole or in part) in any publication or quote from it, simply include my name and URL: http://www.mortgagelicensesolutions.com. No prior permission needed. To inquire about joining my list to receive my blog posts or my availability to speak to your group or write an article for your publication, please email me at Robin@Mortgagelicensesolutions.com. Thank you!
Thursday, June 25, 2009
Loan Originator Testing Starting Soon
The federal SAFE Act, which requires loan originator pre-licensing education and then passing a test, has been implemented in part by many states. The law requires that the Nationwide Mortgage License System (NMLS) create that test. The test consists of questions on relevant national laws (National Component) and questions which test your knowledge of the state law for the state license for which you are applying (State Component). The earliest states to implement their version of the SAFE Act have now announced that they will start testing loan originators on July 30, 2009. Arizona, Idaho, Iowa, Louisiana, Massachusetts, Michigan, New Hampshire, North Carolina, Pennsylvania, Rhode Island, Vermont, Washington State are the first states to offer their State Component of the required testing. The National Component will become available on July 30, 2009, as well. You must pass the National Component and State Component once. If you wish to become licensed in more than one state, once you have passed the National Component, you only need to sign up and pass the test for the State Component in each state in which you have applied for a license. Certain states may permit you to be exempt from their State Component if you have already passed their state exam.
In order to schedule tests with Pearson Vue, the test delivery vendor, you must register and pay for that test through the NMLS. Starting June 29, 2009, you can enroll for the National Component and the State Component for the 12 states listed above. Testing centers are located throughout the country and you can register for the one closest to you, no matter which State Component you have signed up for. All State Components exams are given at all testing sites. This eliminates the travel requirement to each state that multi-state licensed loan officers had under the current system.
You are not required to take any prep courses before you take the exam. Nor are you required to take the 20 hours of pre-licensing education that the SAFE Act requires before you take the exam. However, even if you pass the both the National and State Component of the exam, you will need to complete the 20 hours of pre-licensing education.
Please feel free to forward this blog post to friends, family, colleagues, listserv members or favorite bloggers. Or if you would like to run it (in whole or in part) in any publication or quote from it, simply include my name and URL: http://www.mortgagelicensesolutions.com. No prior permission needed. To inquire about joining my list to receive my blog posts or my availability to speak to your group or write an article for your publication, please email me at Robin@mortgagelicensesolutions.com. Thank you!
In order to schedule tests with Pearson Vue, the test delivery vendor, you must register and pay for that test through the NMLS. Starting June 29, 2009, you can enroll for the National Component and the State Component for the 12 states listed above. Testing centers are located throughout the country and you can register for the one closest to you, no matter which State Component you have signed up for. All State Components exams are given at all testing sites. This eliminates the travel requirement to each state that multi-state licensed loan officers had under the current system.
You are not required to take any prep courses before you take the exam. Nor are you required to take the 20 hours of pre-licensing education that the SAFE Act requires before you take the exam. However, even if you pass the both the National and State Component of the exam, you will need to complete the 20 hours of pre-licensing education.
Please feel free to forward this blog post to friends, family, colleagues, listserv members or favorite bloggers. Or if you would like to run it (in whole or in part) in any publication or quote from it, simply include my name and URL: http://www.mortgagelicensesolutions.com. No prior permission needed. To inquire about joining my list to receive my blog posts or my availability to speak to your group or write an article for your publication, please email me at Robin@mortgagelicensesolutions.com. Thank you!
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