Many of the mortgage brokers and lenders that I have been talking to in the past few months have been complaining about the need to get licensed. Most of the griping stems from the costs involved. A few mortgage brokers have pointed why licensing is better for the industry. You should be telling your potential and past customers why the licensing of loan originators is beneficial to them and how it differentiates the mortgage loan originators from bank loan officers.
You should be pointing out in all of your marketing materials that licensing means that your loan originators are more educated about federal and state laws because of the pre-licensing requirements. You should also emphasize how the testing requirement weeds out those loan originators who don’t take the courses very seriously. And don’t forget to tell everyone how your loan originators needed to go through criminal background checks to ensure that you and the state regulators evaluate whether any criminal convictions could impact their ability to act as honest loan originators.
You should call attention to the fact that borrowers have no idea who their bank loan officer is, yet they can find out pertinent information about your loan originators on the NMLS Consumer Access database. All of your marketing channels should be stressing these reasons why they should be using you, a licensed mortgage loan originator, rather than the unknown quantity that is a bank loan officer. Start shouting it from the rooftops right now.
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!
Monday, May 24, 2010
Monday, May 17, 2010
No More FHA Approval for Mortgage Brokers?
FHA mortgages have been an increasing share of all loan originations for the past few years. For mortgage brokers, this has pushed them to become an FHA-approved Loan Correspondent. However, the FHA approval process has been onerous, especially the requirement that the mortgage broker pay for an audited financial statement that confirms that the broker has a net worth of at least $63,000. Accountant fees for an audited fiancial statement have run into thousands of dollars.
FHA has announced that it will not be approving mortgage brokers to act as Loan Correspondents after May 20, 2010. If your company already has an application pending with FHA, you can still get FHA approval for 2010. But what if you didn’t apply yet?
The new FHA rule provides that all non-FHA-approved Loan Correspondents (mortgage brokers) may participate in FHA programs provided they are sponsored by FHA-approved lenders. This puts the onus on FHA-approved lenders to create the requirements they will have before they accept loan applications for FHA loans from mortgage brokers. Have FHA-approved lenders created their requirements? If anyone has heard specifics about various lenders and their requirements, let me know.
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!
FHA has announced that it will not be approving mortgage brokers to act as Loan Correspondents after May 20, 2010. If your company already has an application pending with FHA, you can still get FHA approval for 2010. But what if you didn’t apply yet?
The new FHA rule provides that all non-FHA-approved Loan Correspondents (mortgage brokers) may participate in FHA programs provided they are sponsored by FHA-approved lenders. This puts the onus on FHA-approved lenders to create the requirements they will have before they accept loan applications for FHA loans from mortgage brokers. Have FHA-approved lenders created their requirements? If anyone has heard specifics about various lenders and their requirements, let me know.
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!
Monday, May 10, 2010
Have You Transitioned Yet? – Calling all Licensees in California (DOC), Montana, Oregon, Utah (DRE), and Texas (SML)
If you are a licensee in California (under the Department of Corporations), Montana, Oregon, Utah (under the Department of Real Estate) or Texas, (under the Department of Savings and Mortgage Lending), your deadline to transition your license to the Nationwide Mortgage Licensing System (NMLS) is coming up at the end of May, 2010 (depending on your state, it’s May 28th (California) or May 31st.
What does it mean if you haven’t transitioned your licenses before the deadline? It could mean that you can’t originate any loans after July 31, 2010. Most companies and loan originators are uncertain as to whether they are affected by the new laws. Many companies and loan originators never were subject to licensing requirements under their own state statutes. But all states have changed their laws to conform to the requirements of the federal SAFE Act. So, in all 50 states and Washington D.C., loan officers who work for mortgage lenders, correspondent mortgage lenders, and mortgage brokers, will need to be licensed.
So, catch up with your licensing requirements. Create an MU4 record through the NMLS. Take the necessary tests immediately (each loan originator must pass a state test and a national test). If your loan originator fails either test, he must wait 30 days before he can re-take the test. And passing the test is not a given – a significant portion of the test-takers are failing the tests. Schedule your FBI criminal background check through the NMLS. Don’t wait until the last minute. If you have questions, call your state regulatory agency. There are licensing companies that help mortgage companies and loan officers to transition their licenses. If your company or your loan officers are already licensed in other states and you are on the NMLS, don’t forget to go back into your MU1, MU3, and MU4 records and transition your CA, MT, OR, UT, and TX licenses (and update your registered agent information, jurisdiction information, and pay the transition fees).
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!
What does it mean if you haven’t transitioned your licenses before the deadline? It could mean that you can’t originate any loans after July 31, 2010. Most companies and loan originators are uncertain as to whether they are affected by the new laws. Many companies and loan originators never were subject to licensing requirements under their own state statutes. But all states have changed their laws to conform to the requirements of the federal SAFE Act. So, in all 50 states and Washington D.C., loan officers who work for mortgage lenders, correspondent mortgage lenders, and mortgage brokers, will need to be licensed.
So, catch up with your licensing requirements. Create an MU4 record through the NMLS. Take the necessary tests immediately (each loan originator must pass a state test and a national test). If your loan originator fails either test, he must wait 30 days before he can re-take the test. And passing the test is not a given – a significant portion of the test-takers are failing the tests. Schedule your FBI criminal background check through the NMLS. Don’t wait until the last minute. If you have questions, call your state regulatory agency. There are licensing companies that help mortgage companies and loan officers to transition their licenses. If your company or your loan officers are already licensed in other states and you are on the NMLS, don’t forget to go back into your MU1, MU3, and MU4 records and transition your CA, MT, OR, UT, and TX licenses (and update your registered agent information, jurisdiction information, and pay the transition fees).
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!
Monday, May 3, 2010
Certification Process for Loan Officers
Many states had testing or education requirements, even before the SAFE Act required them. These states are allowing loan officers to “certify” completion of these requirements rather than making them take a test again or sit through more hours of education.
The certification process just opened up on the Nationwide Mortgage Licensing System (NMLS) on May 1, 2010 and many states that are participating only allow a loan officer to certify through June 30, 2010 (but your state may be starting or ending on a later date). Currently, thirty-five (35) states are allowing certification of testing and/or education. Certification of testing pertains to the state component only; all loan officers need to pass the national component exam. You need to check this list to see if your state is permitting certification:
http://mortgage.nationwidelicensingsystem.org/profreq/Documents/Certification%20State%20List.pdf
Your state regulatory agency will decide if you are eligible to participate in the certification process. In order to use your eligibility to certify, you must have an MU4 record on the NMLS and either transitioned an existing license or applied for a new license. The NMLS will send you an email (using the email address that you have on your MU4 record), letting you know that your state has permitted you to certify and that a certification payment invoice has been posted to your MU4 record. The email will give you step-by-step instructions for paying the invoice. If you are eligible for certification for testing, the fee is $5 per test. If you are eligible for certification for education, the fee is $15. If you don’t pay the fees, you are not “certified” and must actually pass the state test and/or sit through the education hours.
There is a lot of confusion about the loan originator requirements, especially for those loan originators who are licensed in multiple states. Your state regulatory agencies have the answers. If you are my client, I will get you the answers to your questions.
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 certification process just opened up on the Nationwide Mortgage Licensing System (NMLS) on May 1, 2010 and many states that are participating only allow a loan officer to certify through June 30, 2010 (but your state may be starting or ending on a later date). Currently, thirty-five (35) states are allowing certification of testing and/or education. Certification of testing pertains to the state component only; all loan officers need to pass the national component exam. You need to check this list to see if your state is permitting certification:
http://mortgage.nationwidelicensingsystem.org/profreq/Documents/Certification%20State%20List.pdf
Your state regulatory agency will decide if you are eligible to participate in the certification process. In order to use your eligibility to certify, you must have an MU4 record on the NMLS and either transitioned an existing license or applied for a new license. The NMLS will send you an email (using the email address that you have on your MU4 record), letting you know that your state has permitted you to certify and that a certification payment invoice has been posted to your MU4 record. The email will give you step-by-step instructions for paying the invoice. If you are eligible for certification for testing, the fee is $5 per test. If you are eligible for certification for education, the fee is $15. If you don’t pay the fees, you are not “certified” and must actually pass the state test and/or sit through the education hours.
There is a lot of confusion about the loan originator requirements, especially for those loan originators who are licensed in multiple states. Your state regulatory agencies have the answers. If you are my client, I will get you the answers to your questions.
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!
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