I’ve already received my first annual report form and I know from my calendar system that other states have early annual reporting requirements. Most states require an annual report to be filed, some states require semi-annual reports. The vast majority of the annual reports require information about loans that you closed in the previous year. There are also reporting requirements in some states requesting information about the loan officers that you hired and fired in the last quarter or last year.
If this is your first year filing an annual report in a particular state, it may take you awhile to gather the information that the report asks for. So don’t wait until the last minute to review the report to see what information you need to find. If you have filed a report in prior years, you should have your computers and files stored in such a way that you can access the needed data in minutes (if you don’t, maybe you want to update your technology).
Some of the annual reports require financial information in their format, not your accountants’ format, which means that you are spending a lot of time manipulating the numbers to conform to the categories that your state has on its form. If this is not your area of expertise, hire an outside specialist to handle it for you. Your time is better spent closing loans than puzzling how to complete a form.
Showing posts with label annual reports. Show all posts
Showing posts with label annual reports. Show all posts
Thursday, January 8, 2009
Monday, June 9, 2008
New Oregon Annual Report Rule
Oregon has just sent out notice of its new requirement regarding annual reports. The rule is OAR 441-865-0022 and can be read in its entirety on the internet at http://arcweb.sos.state.or.us/rules/OARS_400/OAR_441/441_865.html.
The rule details what information will be required to be on the annual report. In addition to the standard totals for number and dollar amount for 1st mortgages, there are questions about loans insured or guaranteed by a federal agency, totals for negative amortization mortgages, and loans with a loan-to-value ratio of less than 80% but to a borrower with a FICO score of 620 and above. In all, there are 17 sections with some sections having more than 1 question.
The annual report is due on or before August 30, 2008 for loans made in 2007. There are no forms available yet. However, I would suggest that all mortgage bankers and brokers who are licensed in Oregon read the rule and start gathering the necessary information.
The rule details what information will be required to be on the annual report. In addition to the standard totals for number and dollar amount for 1st mortgages, there are questions about loans insured or guaranteed by a federal agency, totals for negative amortization mortgages, and loans with a loan-to-value ratio of less than 80% but to a borrower with a FICO score of 620 and above. In all, there are 17 sections with some sections having more than 1 question.
The annual report is due on or before August 30, 2008 for loans made in 2007. There are no forms available yet. However, I would suggest that all mortgage bankers and brokers who are licensed in Oregon read the rule and start gathering the necessary information.
Tuesday, April 1, 2008
Waiting until the last minute
I have just spent the last 2 days at my computer trying to get a client’s license renewal application through the state's online system. The amount of time I have wasted is staggering.
Most states have now moved their annual reports and license renewals to online systems. I’m sure it is much more convenient for the banking departments but for the person who must input the information, it is very time-consuming. Most of those states have stopped using paper forms so you don't even have a choice.
The person who designed the system has, in many cases, made it impossible to see all of the information that is being requested if all of the information on the current screen is not inputted. The system just does not let that page get submitted if you leave any blanks. So, unless you are doing the input for your own company, your assistant, compliance department, or lawyer must go screen by screen to learn what information will be needed and must input every field, leaving no blanks, or you can’t get any further. This means that, if another person than you is doing the input, they are requesting information in bits and pieces. I’m sure you love getting interrupted 10 times a day to answer questions regarding the same subject.
Worst of all is if you wait until the last minute to submit an annual report or file a license renewal. Today is the last day for the Georgia license renewal. Every screen that I tried to input showed an internal error with the server. All day yesterday, until 10:00 p.m., I tried to just start the procedure and was unable to do so. The system was overwhelmed with last-minute filers. My client had not notified me until yesterday that he intended to renew the license so I was not going to start the procedure if the client had no intention of renewing. I did start reminding him a month ago about this deadline. And, of course, I did not have all the information I needed to renew the license all at once. After taking a half-hour to get through the first set of questions, I needed to get more information and the people I needed to get me the information were unavailable. I'm sure this happens in your company as well.
So, my advice to all is not to wait until the last minute to file anything online. The systems inevitably crash from the overload and it will take you 10 times as long as it should to get the project done.
Most states have now moved their annual reports and license renewals to online systems. I’m sure it is much more convenient for the banking departments but for the person who must input the information, it is very time-consuming. Most of those states have stopped using paper forms so you don't even have a choice.
The person who designed the system has, in many cases, made it impossible to see all of the information that is being requested if all of the information on the current screen is not inputted. The system just does not let that page get submitted if you leave any blanks. So, unless you are doing the input for your own company, your assistant, compliance department, or lawyer must go screen by screen to learn what information will be needed and must input every field, leaving no blanks, or you can’t get any further. This means that, if another person than you is doing the input, they are requesting information in bits and pieces. I’m sure you love getting interrupted 10 times a day to answer questions regarding the same subject.
Worst of all is if you wait until the last minute to submit an annual report or file a license renewal. Today is the last day for the Georgia license renewal. Every screen that I tried to input showed an internal error with the server. All day yesterday, until 10:00 p.m., I tried to just start the procedure and was unable to do so. The system was overwhelmed with last-minute filers. My client had not notified me until yesterday that he intended to renew the license so I was not going to start the procedure if the client had no intention of renewing. I did start reminding him a month ago about this deadline. And, of course, I did not have all the information I needed to renew the license all at once. After taking a half-hour to get through the first set of questions, I needed to get more information and the people I needed to get me the information were unavailable. I'm sure this happens in your company as well.
So, my advice to all is not to wait until the last minute to file anything online. The systems inevitably crash from the overload and it will take you 10 times as long as it should to get the project done.
Wednesday, January 16, 2008
Post-Licensing Requirements
Although the licensing process is the one that all mortgage companies focus on in terms of compliance with state banking regulations, in many states, there are ongoing requirements to remain in compliance with state law and regulation.
Most states require the filing of an annual report each year. The report can be a simple one, asking only a few questions about number and total dollar volume of loans brokered, originated or serviced. Or it can be pages and pages of questions regarding information regarding the company’s financial situation, appraisers and title insurance companies used, and the license numbers of lenders who closed the brokered loans. Delaware requires a report twice a year. Massachusetts and New York require their licensed lenders to file quarterly reports. Failure to file the necessary reports can lead to fines and a refusal to renew a license.
Georgia raises money for its banking department budget by charging $6.50 for each loan closed. Typically, the lender pays the fee but both lenders and brokers are required to file the report stating how many loans were closed.
Those states that require a minimum net worth usually require that the licensees submit audited financial statements every year. Sometimes, it is part of the annual report process, in other states, the financials get submitted separately from the annual report.
Florida requires quarterly reporting of new loan officer hiring and firing. Many other states require annual updates of who your company’s loan officers are. This may be separate from the renewal of mortgage originator licenses.
And always keep in mind those continuing education requirements. Each state has a different number of required continuing education hours and a different timeframe within which they must be completed. If you are licensed in multiple states, you need to take the required number in each state and there is no overlap.
As you can see, getting your license is just the beginning of the work it takes to stay in compliance to keep the license.
Most states require the filing of an annual report each year. The report can be a simple one, asking only a few questions about number and total dollar volume of loans brokered, originated or serviced. Or it can be pages and pages of questions regarding information regarding the company’s financial situation, appraisers and title insurance companies used, and the license numbers of lenders who closed the brokered loans. Delaware requires a report twice a year. Massachusetts and New York require their licensed lenders to file quarterly reports. Failure to file the necessary reports can lead to fines and a refusal to renew a license.
Georgia raises money for its banking department budget by charging $6.50 for each loan closed. Typically, the lender pays the fee but both lenders and brokers are required to file the report stating how many loans were closed.
Those states that require a minimum net worth usually require that the licensees submit audited financial statements every year. Sometimes, it is part of the annual report process, in other states, the financials get submitted separately from the annual report.
Florida requires quarterly reporting of new loan officer hiring and firing. Many other states require annual updates of who your company’s loan officers are. This may be separate from the renewal of mortgage originator licenses.
And always keep in mind those continuing education requirements. Each state has a different number of required continuing education hours and a different timeframe within which they must be completed. If you are licensed in multiple states, you need to take the required number in each state and there is no overlap.
As you can see, getting your license is just the beginning of the work it takes to stay in compliance to keep the license.
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