Most mortgage loan originators will need to take eight (8) hours of continuing education before the end of the year. Actually, you should take your continuing education courses before November 1, 2011, when the ability to renew your license opens up on the NMLS. Some states have specific dates by when you must take your continuing education and other states simply will not let you submit your renewal license application unless your continuing education provider has uploaded the courses you have taken to the NMLS.
Each state has its own requirements as to whether you need to take continuing education this year and whether you need to take state-specific courses. For example, in Connecticut, unless you took your twenty (20) hours of pre-licensing education in 2011 and were approved for your license in 2011, you need to take continuing education in 2011. Exactly what is required? The SAFE Act requires the following education courses: 3 hours of Federal law and regulations, 2 hours of ethics that include instruction on fraud, consumer protection, and fair lending issues, 2 hours of training related to lending standards for the nontraditional mortgage product market, and 1 hour of undefined instruction on mortgage origination. Some states require specific courses on their state’s laws. For example, Georgia requires 1 hour of Georgia law that would count as your 1 hour of undefined instruction on mortgage origination. Georgia also has a deadline of October 31, 2011 for completing continuing education.
The NMLS has a state-by-state that details whether you need to take continuing education in 2011, what kind of courses you need to take, and when your deadline is: http://mortgage.nationwidelicensingsystem.org/courseprovider/Course%20Provider%20Resources/Education%20Hours.pdf
If you are licensed in multiple states, the requirement that you take courses in state-specific law may mean that you are taking more than eight (8) hours of continuing education.
Also be aware that if you took continuing education in 2010, you may not take the same courses again in 2011.
Even if your state does not have a deadline before December 31, 2011, please remember that if you wait until the last minute to do your continuing education and license renewal, there is a good chance that your renewal will not be completed until sometime in January, 2012. Late renewals lead to major hassles with investors who want confirmation that you have a 2012 license to originate mortgages.
Showing posts with label SAFE Act. Show all posts
Showing posts with label SAFE Act. Show all posts
Monday, October 10, 2011
Monday, September 19, 2011
You Need Continuing Education
The SAFE Act created a requirement that all mortgage loan originators take at least 8hours of continuing education each year in order to get approval of your license renewal. If you were licensed in 2009 or 2010, you must comply with the continuing education requirement. If you took your pre-licensing education in 2011 and were licensed in 2011, you do not need to take any continuing education this year. If you took your pre-licensing education in 2009 or 2010 and your licensed was approved in 2011 or is still pending, you need to check with your state regulatory agency to find out if it is requiring loan originators to take continuing education.
If you are licensed in one (1) state, the requirement is that you take 3 hours of federal law and regulations, 2 hours of ethics, 2 hours of training related to lending standards for the nontraditional mortgage product market, and 1 hour of unspecified mortgage training (it's your choice of topic). If you took continuing education last year, you need to take different classes this year. Some states require a certain number of hours of state-specific education instead of the 1 hour hour of unspecified mortgage training. Therefore, if you are licensed is more than one (1) state, you may need to take more than eight (8) hours of continuing education.
The SAFE Act requirement is that you must take your continuing education hours by December 31, 2011. However, certain states require that you take continuing education before you can renew your license. Other states let you submit your renewal license applications, starting November 1, 2011, but they will not approve your renewals before you submit your continuing education hours through the NMLS. You need to check the rules for each state in which you are licensed to ensure that you are taking the correct number and types of continuing education courses so your licenses will be renewed.
If you are licensed in one (1) state, the requirement is that you take 3 hours of federal law and regulations, 2 hours of ethics, 2 hours of training related to lending standards for the nontraditional mortgage product market, and 1 hour of unspecified mortgage training (it's your choice of topic). If you took continuing education last year, you need to take different classes this year. Some states require a certain number of hours of state-specific education instead of the 1 hour hour of unspecified mortgage training. Therefore, if you are licensed is more than one (1) state, you may need to take more than eight (8) hours of continuing education.
The SAFE Act requirement is that you must take your continuing education hours by December 31, 2011. However, certain states require that you take continuing education before you can renew your license. Other states let you submit your renewal license applications, starting November 1, 2011, but they will not approve your renewals before you submit your continuing education hours through the NMLS. You need to check the rules for each state in which you are licensed to ensure that you are taking the correct number and types of continuing education courses so your licenses will be renewed.
Monday, December 13, 2010
Can You Make a Living as a Mortgage Broker/Lender in The New Normal?
Real estate contracts are way down, refinances are being challenged by appraisals that come in too low to meet the needed LTV ratios, and too many homeowners are frozen in their current mortgage. This is the new normal.
I just read an article in the Orlando Sentinel in which the Florida Office of Financial Regulation is concerned that many mortgage brokers will not be licensed on January 1st since only about ¼ of them have transitioned to the Nationwide Mortgage Licensing System (NMLS). Florida’s deadline for transition is December 31st.
I have not taken a formal survey but my experience has shown me that in every state that has transitioned to the NMLS, over half of the existing licensees did not make the transition. In some states, it was close to ¾ of the mortgage brokers who lost or surrendered their licenses.
In the current climate of mortgage brokering, a huge group of loan officers are leaving this line of business. There are many reasons. Some of them feel they cannot make the kind of living they used to (during the real estate bubble) so they look for a more lucrative occupation. Others do not want to jump through the many hoops that the new SAFE law requires. Others cannot meet the require4ments of the SAFE Act, either because of a prior felony conviction that did not previously affect their licensing, or because they have a bankruptcy on their credit record, or because their credit score is too low.
I don’t think this new real estate climate can support more loan officers. There is not a lot of business to go around. I met a loan originator who started in this line of work in 2008 and this is the only real estate market he’s ever known. He has heard the stories from other loan officers who talk of phones ringing off the hook, how much easier it was to work with the old Good Faith Estimate, and how quickly loans closed. But all that is gone. It isn’t coming back for years, if ever. Have you learned how to make a living in the new normal? If you haven’t, you’d better re-think your career plans. When the country climbs out of this recession, real estate sales will increase because there are thousands, maybe millions of people who need to move for their jobs. But the flippers, the speculators, the people whose foreclosures will prevent them from buying for a few years – they will all be out of the market until the next normal comes into play. For now, you need to figure out how to grow your business in ways that you didn’t need to bother with 5 years ago. Do you have any ideas for how to grow your business in the new normal?
I just read an article in the Orlando Sentinel in which the Florida Office of Financial Regulation is concerned that many mortgage brokers will not be licensed on January 1st since only about ¼ of them have transitioned to the Nationwide Mortgage Licensing System (NMLS). Florida’s deadline for transition is December 31st.
I have not taken a formal survey but my experience has shown me that in every state that has transitioned to the NMLS, over half of the existing licensees did not make the transition. In some states, it was close to ¾ of the mortgage brokers who lost or surrendered their licenses.
In the current climate of mortgage brokering, a huge group of loan officers are leaving this line of business. There are many reasons. Some of them feel they cannot make the kind of living they used to (during the real estate bubble) so they look for a more lucrative occupation. Others do not want to jump through the many hoops that the new SAFE law requires. Others cannot meet the require4ments of the SAFE Act, either because of a prior felony conviction that did not previously affect their licensing, or because they have a bankruptcy on their credit record, or because their credit score is too low.
I don’t think this new real estate climate can support more loan officers. There is not a lot of business to go around. I met a loan originator who started in this line of work in 2008 and this is the only real estate market he’s ever known. He has heard the stories from other loan officers who talk of phones ringing off the hook, how much easier it was to work with the old Good Faith Estimate, and how quickly loans closed. But all that is gone. It isn’t coming back for years, if ever. Have you learned how to make a living in the new normal? If you haven’t, you’d better re-think your career plans. When the country climbs out of this recession, real estate sales will increase because there are thousands, maybe millions of people who need to move for their jobs. But the flippers, the speculators, the people whose foreclosures will prevent them from buying for a few years – they will all be out of the market until the next normal comes into play. For now, you need to figure out how to grow your business in ways that you didn’t need to bother with 5 years ago. Do you have any ideas for how to grow your business in the new normal?
Monday, June 7, 2010
The SAFE Act Requirements Are Only the Minimum
In 2008, Congress passed the SAFE Act, which had the objectives of creating a uniform set of license application and reporting requirements for loan originators, enhancing consumer protections, creating a nationwide database, and providing tracking ability of loan originators. The SAFE Act set out minimum requirements of which most mortgage industry members are familiar:
20 hours of pre-licensing education, 8 hours of continuing education after the first year of licensing, pass a national and a state test, FBI background criminal check, and (starting in October, 2010) provide credit reports.
These are the minimum requirements but the SAFE Act gave each state the right to set additional requirements. And some states have. Many states have additional forms that must be signed by the loan originator as part of the application process. Other states require state background checks so you are getting your fingerprints taken twice (sometimes at 2 different places) so that one set of fingerprint cards can be sent to your state’s criminal database and the other set can be sent to the FBI database. Some states accept the 20 hours of pre-licensing education as full compliance with their licensing requirements and other states require the 20 hours plus some extra hours of state-specific education (for example, North Carolina and New Jersey require 4 extra hours). Some states are requiring 8 hours of continuing education but other states require additional hours (for example, Kentucky requires 12 hours).
Especially if you are licensed in multiple states, you must be aware of the licensing requirements of each state in which you wish to be licensed. Some states require more than you thought they would.
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!
20 hours of pre-licensing education, 8 hours of continuing education after the first year of licensing, pass a national and a state test, FBI background criminal check, and (starting in October, 2010) provide credit reports.
These are the minimum requirements but the SAFE Act gave each state the right to set additional requirements. And some states have. Many states have additional forms that must be signed by the loan originator as part of the application process. Other states require state background checks so you are getting your fingerprints taken twice (sometimes at 2 different places) so that one set of fingerprint cards can be sent to your state’s criminal database and the other set can be sent to the FBI database. Some states accept the 20 hours of pre-licensing education as full compliance with their licensing requirements and other states require the 20 hours plus some extra hours of state-specific education (for example, North Carolina and New Jersey require 4 extra hours). Some states are requiring 8 hours of continuing education but other states require additional hours (for example, Kentucky requires 12 hours).
Especially if you are licensed in multiple states, you must be aware of the licensing requirements of each state in which you wish to be licensed. Some states require more than you thought they would.
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, July 28, 2009
Virginia transitioning to NMLS for Mortgage Loan Originators
Virginia will start using the Nationwide Mortgage Licensing System (NMLS) on August 3, 2009 to start implementing its version of the SAFE Act. It will not be using the NMLS for licensing mortgage bankers or brokers yet. What do you need to know if you are a mortgage loan originator whose employer originates or brokers Virginia loans?
By July 1, 2010, all loan originators will need to be licensed. In order to start the ball rolling, loan officers can start submitting applications through the Nationwide Mortgage Licensing System (NMLS) on August 3, 2009.
If you have never registered on the NMLS, you need to create your own record by completing an MU4 form which serves as the application. Then, you submit the Virginia checklist and accompanying documentation.
If you are already on the NMLS because you are licensed in another state, you do not need to submit a new application. You merely add a jurisdiction (Virginia) to your record (the MU4) and then submit the Virginia checklist with required accompanying documentation.
All applicants for a Virginia mortgage loan originator license need to take 20 hours of pre-licensing education, pass an exam, submit a surety bond, submit fingerprints for a criminal background check, and pass a financial background check, including a review of your credit report.
The fee for the license is $180, which includes a Virginia application fee of $150 and NMLS processing fee of $30. (This fee does not include the cost of fingerprinting and credit report fees that will be required.) All fees are collected through the NMLS and are NONREFUNDABLE.
As of July 22, 2009, the NMLS has not approved any course providers to teach the 20 hours of pre-licensing education. The licensing statute does not require the pre-licensing courses to be taken before the exam. As updated information about the exam and the pre-licensing courses become available, I will post more information on this blog.
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!
By July 1, 2010, all loan originators will need to be licensed. In order to start the ball rolling, loan officers can start submitting applications through the Nationwide Mortgage Licensing System (NMLS) on August 3, 2009.
If you have never registered on the NMLS, you need to create your own record by completing an MU4 form which serves as the application. Then, you submit the Virginia checklist and accompanying documentation.
If you are already on the NMLS because you are licensed in another state, you do not need to submit a new application. You merely add a jurisdiction (Virginia) to your record (the MU4) and then submit the Virginia checklist with required accompanying documentation.
All applicants for a Virginia mortgage loan originator license need to take 20 hours of pre-licensing education, pass an exam, submit a surety bond, submit fingerprints for a criminal background check, and pass a financial background check, including a review of your credit report.
The fee for the license is $180, which includes a Virginia application fee of $150 and NMLS processing fee of $30. (This fee does not include the cost of fingerprinting and credit report fees that will be required.) All fees are collected through the NMLS and are NONREFUNDABLE.
As of July 22, 2009, the NMLS has not approved any course providers to teach the 20 hours of pre-licensing education. The licensing statute does not require the pre-licensing courses to be taken before the exam. As updated information about the exam and the pre-licensing courses become available, I will post more information on this blog.
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, July 10, 2009
Can You Lose Your Ability to Earn a Living If You Have a Criminal Conviction?
When I started doing mortgage broker/lender licensing over 10 years ago, very few states licensed their loan officers. Now, as a result of the federal SAFE Act, every state will be licensing loan officers by July 31, 2010. Some of the states which licensed their loan officers asked about arrests and criminal convictions when you applied for a license, others did not. Even in those states that asked about criminal convictions, there was a lot of leeway for license application reviewers to use their discretion about granting the license depending upon what kind of crime was involved or how long ago your conviction took place. Now every state will ask about your criminal background and require you to submit fingerprint cards to verify that you do not have a criminal conviction.
After the subprime mortgage mess revealed many instances of mortgage fraud, it came to light that there were thousands of loan originators who had criminal records. Some of the criminal convictions were for fraud, embezzlement, writing bad checks and identity theft. The SAFE Act attempts to address this issue by prohibiting anyone who has had a felony conviction within the last seven (7) years or who was convicted of a felony involving fraud, dishonesty, breach or trust or money laundering. Some of the states, in writing their own laws to implement the SAFE Act, have been more stringent in their desire to weed out possible bad apples. Those states have simply prohibited any person from getting approved for a loan originator license if that person has a felony conviction of any type, no matter how far in the past that conviction was.
So, if you were a loan officer in a state that did not inquire about criminal convictions or your felony conviction was for drunk driving or possession of some pot when you were 20 years old, you may have been closing mortgages for 5 or 10 years with no problem. Now, once your state implements the SAFE Act, depending on how strict they want to be, you may not get past the application that needs to be submitted through the Nationwide Mortgage License System. If you indicate that you have been convicted of a felony, the application process might stop right there. And you are now out of a profession. There is no room for leniency or discretion by the state regulators.
So, if you are an employer, be aware that you may be losing some of your loan officers once the SAFE Act comes to your state. If you are a loan officer, I am sorry to say that a felony conviction is one mistake in your life that you may not be able to correct.
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!
After the subprime mortgage mess revealed many instances of mortgage fraud, it came to light that there were thousands of loan originators who had criminal records. Some of the criminal convictions were for fraud, embezzlement, writing bad checks and identity theft. The SAFE Act attempts to address this issue by prohibiting anyone who has had a felony conviction within the last seven (7) years or who was convicted of a felony involving fraud, dishonesty, breach or trust or money laundering. Some of the states, in writing their own laws to implement the SAFE Act, have been more stringent in their desire to weed out possible bad apples. Those states have simply prohibited any person from getting approved for a loan originator license if that person has a felony conviction of any type, no matter how far in the past that conviction was.
So, if you were a loan officer in a state that did not inquire about criminal convictions or your felony conviction was for drunk driving or possession of some pot when you were 20 years old, you may have been closing mortgages for 5 or 10 years with no problem. Now, once your state implements the SAFE Act, depending on how strict they want to be, you may not get past the application that needs to be submitted through the Nationwide Mortgage License System. If you indicate that you have been convicted of a felony, the application process might stop right there. And you are now out of a profession. There is no room for leniency or discretion by the state regulators.
So, if you are an employer, be aware that you may be losing some of your loan officers once the SAFE Act comes to your state. If you are a loan officer, I am sorry to say that a felony conviction is one mistake in your life that you may not be able to correct.
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!
Monday, June 1, 2009
Arizona Transitions to the NMLS
You have until June 30, 2009 to transition your company or sole proprietor mortgage broker license to the NMLS if you are currently licensed in Arizona. Mortgage bankers needed to transition to the NMLS by March 31, 2009.
Remember that transitioning your licenses does not mean amending your license information. If there are any changes to your information (e.g., you’ve moved your office or changed branch managers), you can submit the changes only after your current filings are approved.
The most basic filing is an MU1 for the company and the MU2 for each control person and the Responsible Individual. If you have branch licenses already approved, then you need to complete an MU3 for each branch and the branch managers must complete their own MU2 filings.
New applications for a company or branch license must be submitted through the NMLS. There are no more paper applications.
All loan originators must be licensed by December 31, 2009. The Arizona Department of Financial Institutions (the “DFI”) is still working on the conditions it will require for licensing loan originators since they are still deciding how to fully comply with the federal SAFE Act. However, loan originators can currently input an MU4 on the NMLS to get licensed under the existing Arizona licensing law. Loan originators must wait to input their MU4s until their employer has completed their NMLS filings. The DFI is intending to propose legislation that would postpone the deadline for licensing loan originators until July 1, 2010. But, such legislation has not become law yet so the deadline stays at December 31, 2009.
Remember that transitioning your licenses does not mean amending your license information. If there are any changes to your information (e.g., you’ve moved your office or changed branch managers), you can submit the changes only after your current filings are approved.
The most basic filing is an MU1 for the company and the MU2 for each control person and the Responsible Individual. If you have branch licenses already approved, then you need to complete an MU3 for each branch and the branch managers must complete their own MU2 filings.
New applications for a company or branch license must be submitted through the NMLS. There are no more paper applications.
All loan originators must be licensed by December 31, 2009. The Arizona Department of Financial Institutions (the “DFI”) is still working on the conditions it will require for licensing loan originators since they are still deciding how to fully comply with the federal SAFE Act. However, loan originators can currently input an MU4 on the NMLS to get licensed under the existing Arizona licensing law. Loan originators must wait to input their MU4s until their employer has completed their NMLS filings. The DFI is intending to propose legislation that would postpone the deadline for licensing loan originators until July 1, 2010. But, such legislation has not become law yet so the deadline stays at December 31, 2009.
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