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 continuing education. Show all posts
Showing posts with label continuing education. 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, February 28, 2011
Do You Need to Take Continuing Education Courses This Year?
Are you aware that loan originators will need to take at least eight (8) hours of continuing education this year? That’s right, the SAFE Act doesn’t just require the twenty (20) hours of pre-licensing education. Now that you are licensed, you need to take continuing education every year.
The Safe Act requirements are that you take 3 hours of federal law and regulation, 2 hours of ethics, including mortgage fraud, consumer protection, and fair lending issues, 2 hours of training regarding nontraditional mortgage products, and 1 hour of unspecified mortgage origination training. In addition to these requirements, some states also require state-specific hours. This means that if you are licensed in a state that requires state-specific education hours, you will be taking more than eight (8) hours of continuing education.
You must take these hours from an NMLS-approved provider and you cannot take the same courses year after year. Moreover, the courses that you take must be approved for continuing education as opposed to pre-licensing education. Since continuing education is required each year before your license can be renewed, you may want to think about scheduling your continuing education hours. You do not have to take all of your courses at once so think about scheduling courses when your office is traditionally less busy. You do not want to be taking your continuing education at the last minute when you need to renew your license.
The Safe Act requirements are that you take 3 hours of federal law and regulation, 2 hours of ethics, including mortgage fraud, consumer protection, and fair lending issues, 2 hours of training regarding nontraditional mortgage products, and 1 hour of unspecified mortgage origination training. In addition to these requirements, some states also require state-specific hours. This means that if you are licensed in a state that requires state-specific education hours, you will be taking more than eight (8) hours of continuing education.
You must take these hours from an NMLS-approved provider and you cannot take the same courses year after year. Moreover, the courses that you take must be approved for continuing education as opposed to pre-licensing education. Since continuing education is required each year before your license can be renewed, you may want to think about scheduling your continuing education hours. You do not have to take all of your courses at once so think about scheduling courses when your office is traditionally less busy. You do not want to be taking your continuing education at the last minute when you need to renew your license.
Monday, December 20, 2010
The December 31st Deadline is Quickly Approaching – Does It Affect You?
December 31st is the deadline for quite of number of people in the mortgage business. Many licenses expire and must be renewed. Certain states are completing their transitions to the Nationwide Mortgage Licensing System (NMLS) – Florida, Maryland, and Utah DFI. Hawaii received an extension from HUD through March 31, 2011 to complete its transition to the NMLS. This means that most of you are affected by the December 31st deadline.
Who is not affected? If you renewed your license already, and if you have completed all of your required continuing education, and you have submitted your checklist to your state regulatory agency, then December 31st doesn’t mean much to you. You may wish to contact your state regulatory agency to confirm that they have received everything from you that they need. At this time of the year, the reviewers are checking through thousands of renewal applications, so they may be delayed in approving or denying an application. But, you should check to make sure that you have sent in all required items.
The NMLS and most states are sending out generic reminders of various requirements for renewal. Read through each reminder in its entirety to make sure that it doesn’t apply to you. If it does apply, immediately schedule the work that needs to be done to bring you into compliance. Did you authorize your credit report to be pulled? Did you send in your checklist with all required documentation? Did you take all required continuing education? If you are not sure if the reminder applies to you, call your state regulatory agency and speak to someone in the licensing division. It’s better to be sure than to find out too late that you missed a requirement of your renewal. If you find that you are very busy this time of year, hire a licensing firm that can do most of the work for you and keep you apprised of what you still need to do.
If you are licensed in one of the states that is transitioning to the NMLS, you must decide whether you will transition your license in the next 10 days. I have several clients that are still making that decision and those state regulatory agencies are warning their licensees not to wait until the last minute to transition or they may not be properly licensed at the beginning of January. If you already have an NMLS record, the amount of time you need to spend to add a new state is not onerous (unless you are busy trying to close loans and make some money at this time of the year). If you have never been on the NMLS, you will be shocked at the amount of time it will take you to learn how to use the system. Plus, you must comply with all of the requirements of your license under the new statute.
I urge all mortgage company owners and all loan originators to take a few minutes to ensure that you have complied with all requirements to renew your licenses and/or to transition your licenses to the NMLS. You don’t want to be scrambling in January without a license.
Who is not affected? If you renewed your license already, and if you have completed all of your required continuing education, and you have submitted your checklist to your state regulatory agency, then December 31st doesn’t mean much to you. You may wish to contact your state regulatory agency to confirm that they have received everything from you that they need. At this time of the year, the reviewers are checking through thousands of renewal applications, so they may be delayed in approving or denying an application. But, you should check to make sure that you have sent in all required items.
The NMLS and most states are sending out generic reminders of various requirements for renewal. Read through each reminder in its entirety to make sure that it doesn’t apply to you. If it does apply, immediately schedule the work that needs to be done to bring you into compliance. Did you authorize your credit report to be pulled? Did you send in your checklist with all required documentation? Did you take all required continuing education? If you are not sure if the reminder applies to you, call your state regulatory agency and speak to someone in the licensing division. It’s better to be sure than to find out too late that you missed a requirement of your renewal. If you find that you are very busy this time of year, hire a licensing firm that can do most of the work for you and keep you apprised of what you still need to do.
If you are licensed in one of the states that is transitioning to the NMLS, you must decide whether you will transition your license in the next 10 days. I have several clients that are still making that decision and those state regulatory agencies are warning their licensees not to wait until the last minute to transition or they may not be properly licensed at the beginning of January. If you already have an NMLS record, the amount of time you need to spend to add a new state is not onerous (unless you are busy trying to close loans and make some money at this time of the year). If you have never been on the NMLS, you will be shocked at the amount of time it will take you to learn how to use the system. Plus, you must comply with all of the requirements of your license under the new statute.
I urge all mortgage company owners and all loan originators to take a few minutes to ensure that you have complied with all requirements to renew your licenses and/or to transition your licenses to the NMLS. You don’t want to be scrambling in January without a license.
Monday, August 16, 2010
Continuing Education For Mortgage Loan Originators
Most mortgage loan originators (MLOs) are now aware that they have a requirement to take 20 hours of pre-licensing education in order to get their license. Many of you are unaware that the SAFE Act requires that you also take 8 hours of continuing education each year. The continuing education must be comprised of 3 hours of federal laws and regulations, 2 hours of ethics, 2 hours of training related to lending standards for the nontraditional mortgage product market, and 1 hour of undefined instruction on mortgage origination. Each state has the obligation to refine these requirements.
If you are licensed in a state that required you to take the 20 hours of pre-licensing education in 2009, then in order to renew your license in November, 2010, you will need to complete your continuing education hours by December 31, 2010. If you are licensed in more than one state, you should check with each state’s regulatory agency to make sure that you complete that state’s continuing education requirements. If you took your 20 hours of pre-licensing education in 2010, you do not need to take continuing education until 2011.
Contact Robin Gronsky at Robin@Mortgagelicensesolutions.com if you want to explore expanding into new states or need help with your licensing applications (company or loan originator). I’ll keep what you tell me confidential but I cannot give you any specific legal advice until you become a client of the firm. This is done by written agreement only.
If you are licensed in a state that required you to take the 20 hours of pre-licensing education in 2009, then in order to renew your license in November, 2010, you will need to complete your continuing education hours by December 31, 2010. If you are licensed in more than one state, you should check with each state’s regulatory agency to make sure that you complete that state’s continuing education requirements. If you took your 20 hours of pre-licensing education in 2010, you do not need to take continuing education until 2011.
Contact Robin Gronsky at Robin@Mortgagelicensesolutions.com if you want to explore expanding into new states or need help with your licensing applications (company or loan originator). I’ll keep what you tell me confidential but I cannot give you any specific legal advice until you become a client of the firm. This is done by written agreement only.
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!
Tuesday, September 16, 2008
Update on Virginia laws
As of July 1, 2008, Virginia has required that all employers must obtain a criminal history record from the Virginia Central Criminal Records Exchange for all new employees who have access to personal identifying or financial information from customers. The report must show that the prospective employee has not been convicted of any felony or misdemeanor involving fraud, deceit, or misrepresentation in any state or under federal law. If there is such a conviction, no matter how old, you must get permission from the Bureau of Financial Institutions to hire this person. You must keep the criminal records report in the event of an examination of your books and records by the Bureau of Financial Institutions.
Employers also need to provide initial training and continuing education for all employees who are involved in the origination, marketing, underwriting, closing or quality control of Virginia loans. The initial education must be provided to all who were your employees who fit the definition that I just stated and anyone else who fits that definition who is hired after July 1, 2008. You have until May 1, 2009 to have the initial training completed for employees who were with your company on July 1, 2009. You have 90 days to have the initial training completed for anyone new who is hired after July 1, 2009. The initial training consists of at least 12 hours of federal law including the Truth-in-Lending Act, RESPA, Equal Credit Opportunity Act, and the Fair Credit Reporting Act, 4 hours of Virginia law, including the Virginia Mortgage Lender and Broker Act and 2 hours of mortgage fraud prevention, including the penalties for participating in mortgage fraud. Marketing and sales training courses don’t count.
Additionally, there is continuing education required for these employees on an annual basis after the initial training and consists of at least 4 hours of federal law, 2 hours of Virginia law, and 1 hours of mortgage fraud prevention. All employers must keep documentation showing which employees had initial and then continuing education, which courses they took (you must provide descriptions of each course), how many hours each course was, who the provider was, and when each course was completed.
You should have received a copy of this new law if you are currently licensed in Virginia. If you are like many of my clients, when you receive notice of a new law, you quickly skim the notice and decide you can’t figure out what it says. And then you wonder what you need to do next. You should have retained a lawyer to explain the new laws to you if you cannot understand what the Bureau of Financial Institutions has sent to you. Your inability to understand the new laws, rules, or regulations will not serve to protect you if you violate them.
Employers also need to provide initial training and continuing education for all employees who are involved in the origination, marketing, underwriting, closing or quality control of Virginia loans. The initial education must be provided to all who were your employees who fit the definition that I just stated and anyone else who fits that definition who is hired after July 1, 2008. You have until May 1, 2009 to have the initial training completed for employees who were with your company on July 1, 2009. You have 90 days to have the initial training completed for anyone new who is hired after July 1, 2009. The initial training consists of at least 12 hours of federal law including the Truth-in-Lending Act, RESPA, Equal Credit Opportunity Act, and the Fair Credit Reporting Act, 4 hours of Virginia law, including the Virginia Mortgage Lender and Broker Act and 2 hours of mortgage fraud prevention, including the penalties for participating in mortgage fraud. Marketing and sales training courses don’t count.
Additionally, there is continuing education required for these employees on an annual basis after the initial training and consists of at least 4 hours of federal law, 2 hours of Virginia law, and 1 hours of mortgage fraud prevention. All employers must keep documentation showing which employees had initial and then continuing education, which courses they took (you must provide descriptions of each course), how many hours each course was, who the provider was, and when each course was completed.
You should have received a copy of this new law if you are currently licensed in Virginia. If you are like many of my clients, when you receive notice of a new law, you quickly skim the notice and decide you can’t figure out what it says. And then you wonder what you need to do next. You should have retained a lawyer to explain the new laws to you if you cannot understand what the Bureau of Financial Institutions has sent to you. Your inability to understand the new laws, rules, or regulations will not serve to protect you if you violate them.
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.
Wednesday, April 25, 2007
Continuing education
About half of the states require continuing education for loan officers, branch managers and company principals after you get your license. The number of hours varies by state. The type of education also is dictated by each state's regulations.
Most of the states permit online coursework. This is very convenient for those who need the continuing education hours for a state outside their home state. You sign up, take the coursework, and then pass a test to show that you paid attention to the coursework. You must make sure you get your certificate from the continuing education provider to show that you completed the courses.
A few of the states require that you attend in-classroom education which means you need to travel if this is not your home state. Other states require that you use only approved providers.
The important thing to remember about the continuing education requirement is to complete it in a timely manner. Some states require that it be completed during a calendar year and other states permit you to take your continuing education anytime before you need to renew a license or to submit an annual report. For mortgage brokers who are licensed in many states this means being very organized about when to take the continuing education for each state.
If you don't take the continuing education, you might not get your license renewed - a very expensive lesson in compliance.
Most of the states permit online coursework. This is very convenient for those who need the continuing education hours for a state outside their home state. You sign up, take the coursework, and then pass a test to show that you paid attention to the coursework. You must make sure you get your certificate from the continuing education provider to show that you completed the courses.
A few of the states require that you attend in-classroom education which means you need to travel if this is not your home state. Other states require that you use only approved providers.
The important thing to remember about the continuing education requirement is to complete it in a timely manner. Some states require that it be completed during a calendar year and other states permit you to take your continuing education anytime before you need to renew a license or to submit an annual report. For mortgage brokers who are licensed in many states this means being very organized about when to take the continuing education for each state.
If you don't take the continuing education, you might not get your license renewed - a very expensive lesson in compliance.
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