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 mortgage loan originator renewal license. Show all posts
Showing posts with label mortgage loan originator renewal license. Show all posts
Monday, October 10, 2011
Monday, November 29, 2010
Why Your License Renewal Fees May Be So Cheap
I just renewed the licenses for one of my mortgage broker clients and its 6 loan originators. I used the company’s credit card for payment of the renewal fees and sent the payment confirmations (I print out every payment confirmation for every client) to my client with an explanation of what each confirmation was for. I also sent my client a quick memo explaining that this year’s renewal fees were much cheaper than next year’s renewal fees would be.
Why are this year’s renewal fees cheaper? My client has multiple licenses and some of its state licenses were transitioned to the Nationwide Mortgage Licensing System (NMLS) in 2008, some in 2009, and some in 2010. The states which transitioned onto the NMLS in 2008 and 2009 charged full renewal fees for the company, its branches, and its loan originators. The state that transitioned to the NMLS in 2010 did not charge a renewal fee because it essentially charged the renewal fee when the transition to the NMLS took place. For that state, my client paid only an NMLS administrative fee which is $30. For a company with one branch and 6 loan originators, it meant that my mortgage broker client was not paying hundreds of dollars in renewal fees at this time.
Next year, at this time, all of the company’s state banking departments will charge full renewal fees. This means that that this client (and all licensees) must have a stash of cash to pay for its renewals at one time. There is no more spreading out your renewal fees. And all states now renew annually (my client had a state license that renewed every two years) plus all the loan originators need to take continuing education next year.
If you are a mortgage lender or broker or a loan originator, and you transitioned to the NMLS in 2010, you spread out some of your fees over the course of this year. It may seem fairly inexpensive to now renew your licenses under the new statute. But, next year, you will be paying the full amount due in November or December. And you will need to take continuing education. Make sure you have enough in reserves to pay these necessary expenses.
Why are this year’s renewal fees cheaper? My client has multiple licenses and some of its state licenses were transitioned to the Nationwide Mortgage Licensing System (NMLS) in 2008, some in 2009, and some in 2010. The states which transitioned onto the NMLS in 2008 and 2009 charged full renewal fees for the company, its branches, and its loan originators. The state that transitioned to the NMLS in 2010 did not charge a renewal fee because it essentially charged the renewal fee when the transition to the NMLS took place. For that state, my client paid only an NMLS administrative fee which is $30. For a company with one branch and 6 loan originators, it meant that my mortgage broker client was not paying hundreds of dollars in renewal fees at this time.
Next year, at this time, all of the company’s state banking departments will charge full renewal fees. This means that that this client (and all licensees) must have a stash of cash to pay for its renewals at one time. There is no more spreading out your renewal fees. And all states now renew annually (my client had a state license that renewed every two years) plus all the loan originators need to take continuing education next year.
If you are a mortgage lender or broker or a loan originator, and you transitioned to the NMLS in 2010, you spread out some of your fees over the course of this year. It may seem fairly inexpensive to now renew your licenses under the new statute. But, next year, you will be paying the full amount due in November or December. And you will need to take continuing education. Make sure you have enough in reserves to pay these necessary expenses.
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, January 4, 2010
Missed the Deadline for Renewing Your License Through the NMLS?
The license renewal period on the Nationwide Mortgage Licensing System (NMLS) ran from November 1, 2009 through December 31, 2009. What if you didn’t get around to renewing your license through the NMLS?
Different states have allowed a late renewal or reinstatement (for an extra fee, of course). Here’s the link for more information: http://mortgage.nationwidelicensingsystem.org/slr/common/renewals/Pages/RenewalStates.aspx
Hurry up! Your state may allow a renewal request only through January 15, 2010. In other states, if you didn’t request a renewal of your license, it has expired and you need to apply for a new license.
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!
Different states have allowed a late renewal or reinstatement (for an extra fee, of course). Here’s the link for more information: http://mortgage.nationwidelicensingsystem.org/slr/common/renewals/Pages/RenewalStates.aspx
Hurry up! Your state may allow a renewal request only through January 15, 2010. In other states, if you didn’t request a renewal of your license, it has expired and you need to apply for a new license.
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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