I’ve been receiving phone calls from mortgage loan originators from different states, asking what they should do if they have a criminal conviction in their past. The federal SAFE Act, enacted in 2008, provided minimum standards for the licensing of mortgage loan originators. Included in those requirements is a blanket prohibition on applicants who have been convicted of, pled guilty, or pled nolo contendere (no contest) to a felony if the felony was a crime involving fraud, dishonesty, breach of trust, or money laundering. There is a seven-year disqualification if the felony conviction was for any other type of crime.
If you have been denied approval of your mortgage loan originator license application because of a criminal conviction in your past, you have a couple of options. The first is that you can challenge your denial. Each state agency who issues decisions on license application has a set of procedures for challenging these decisions. Usually, it involves a hearing before someone else in the same agency or perhaps a hearing in front of an administrative judge. The procedures differ for each state. If you wish to challenge the denial of your license application, you must follow the rules for that agency. If you will be hiring a lawyer to represent you, you want to hire a lawyer who practices administrative law in the state in which the licensing agency exists. If your license was denied by the Massachusetts Division of Banks, you need a Massachusetts-licensed attorney. If your license was denied by the Illinois Department of Financial and Professional Regulation, you must hire an Illinois-licensed lawyer. If there are time limits for filing a challenge, you must not delay filing the challenge. If your challenge is filed too late, it is barred forever.
Your other choice is to try to find employment with a depository institution as the SAFE Act has different rules for mortgage loan originators employed by banks. If your felony conviction is for a dishonesty crime, you may never be a loan originator again.
Showing posts with label mortgage loan originator license. Show all posts
Showing posts with label mortgage loan originator license. Show all posts
Tuesday, March 15, 2011
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, November 15, 2010
Are Loan Originators Allowed to Originate Loans When They Are Conditionally Licensed?
Your state is still transitioning to the Nationwide Mortgage Licensing System. Some of your loan originators have transitioned their licenses but they have not been approved yet by the state licensing agency. Are they allowed to originate loans? Can you pay them for the loans they originate?
Check your state’s licensing statute and find out whether the licensing agency has issued any bulletins or memos to its licensees outlining its interpretation of the licensing statute. In many cases, the state agency has taken the position that, so long as your loan originators have license applications pending with the state or have extended licenses or registrations, then they may receive compensation for originations. A different position may be taken by your licensing agency for new originators who are awaiting approval of their licensing applications during the transition period. You may find that your state takes the position that a new loan originator may not originate loans until the license application has been approved. Each state has a different licensing statute subject only to the requirements of the SAFE Act. Each licensing agency will interpret its own laws and regulations so you must check each state's laws and regulations for every state in which you and your loan originators are licensed or wish to be licensed. You may find that one state will allow originators to originate (and get paid) while the application is pending but another state may require the loan originator to wait to originate until the application is fully approved.
Check your state’s licensing statute and find out whether the licensing agency has issued any bulletins or memos to its licensees outlining its interpretation of the licensing statute. In many cases, the state agency has taken the position that, so long as your loan originators have license applications pending with the state or have extended licenses or registrations, then they may receive compensation for originations. A different position may be taken by your licensing agency for new originators who are awaiting approval of their licensing applications during the transition period. You may find that your state takes the position that a new loan originator may not originate loans until the license application has been approved. Each state has a different licensing statute subject only to the requirements of the SAFE Act. Each licensing agency will interpret its own laws and regulations so you must check each state's laws and regulations for every state in which you and your loan originators are licensed or wish to be licensed. You may find that one state will allow originators to originate (and get paid) while the application is pending but another state may require the loan originator to wait to originate until the application is fully approved.
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.
Monday, June 28, 2010
Credit Reports – the Next Requirement for Licensing
Most mortgage professionals are familiar with the new licensing requirements – the pre-licensing education, the exams that you need to pass, and the FBI criminal background checks. Coming soon, (around October, 2010), the Nationwide Mortgage Licensing System (NMLS) will open up to begin accepting the last requirement – the credit report. Under all states laws concerning the licensing of loan originators, you must authorize your state licensing agency to obtain a copy of your credit report. Your state regulator must determine that you have shown financial responsibility before they will approve your licensing application.
Many of you are wondering whether your credit report will be the stumbling block that prevents you from getting licensed under the new laws. After all, 2008 and 2009were terrible years for the industry and many of you took big hits in income those years. Many of you ran into credit card debt and had trouble paying your bills. Will this be an issue now?
A few states have already issued guidelines. If your state has not, you should pay attention to the guidelines already announced – it is likely that your state’s requirements will be similar. The following items will probably trigger a close review of your license application: bankruptcies (timeframes of how long ago your bankruptcy will matter will differ by state), tax liens, current outstanding judgments (some states will not hold judgments for medical expenses against you), a history of collection accounts, foreclosures, outstanding child support, or no credit history. Some states may have minimum credit scores, others may not.
Most licensing regulators are not stating that any of the above criteria are automatic disqualifiers, they are saying that they will review your entire credit history and any explanations you can provide as to why you had credit issues before they make their decision.
What can you do to help your application? Obviously, you cannot change what has already happened. But, if you have current credit problems, get them resolved now. Pay your judgments, get any tax liens released, and write down your explanations of any derogatory credit issues. However, if any of your credit problems stem from issues of dishonesty, fraud, misappropriation of trust funds, or misrepresentation, you may not be able to get approval for a license.
Contact Robin Gronsky at Rgronsky@Gronskylaw.com if you want to explore expanding into new states or you 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.
Many of you are wondering whether your credit report will be the stumbling block that prevents you from getting licensed under the new laws. After all, 2008 and 2009were terrible years for the industry and many of you took big hits in income those years. Many of you ran into credit card debt and had trouble paying your bills. Will this be an issue now?
A few states have already issued guidelines. If your state has not, you should pay attention to the guidelines already announced – it is likely that your state’s requirements will be similar. The following items will probably trigger a close review of your license application: bankruptcies (timeframes of how long ago your bankruptcy will matter will differ by state), tax liens, current outstanding judgments (some states will not hold judgments for medical expenses against you), a history of collection accounts, foreclosures, outstanding child support, or no credit history. Some states may have minimum credit scores, others may not.
Most licensing regulators are not stating that any of the above criteria are automatic disqualifiers, they are saying that they will review your entire credit history and any explanations you can provide as to why you had credit issues before they make their decision.
What can you do to help your application? Obviously, you cannot change what has already happened. But, if you have current credit problems, get them resolved now. Pay your judgments, get any tax liens released, and write down your explanations of any derogatory credit issues. However, if any of your credit problems stem from issues of dishonesty, fraud, misappropriation of trust funds, or misrepresentation, you may not be able to get approval for a license.
Contact Robin Gronsky at Rgronsky@Gronskylaw.com if you want to explore expanding into new states or you 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.
Subscribe to:
Posts (Atom)
