Each state is passing legislation to implement the federal SAFE Act. The legislation requires 20 hours of pre-licensing education and then passing two tests, one is a national component and the second test is a state component. Each state is setting its own deadline for when you need to complete the 20 hours and pass the exams. Don’t wait until the last minute to take the education and sit for the exams.
I have been in the business of helping mortgage lenders and brokers obtain and renew licenses for more than 10 years. Some of my clients are more on top of their licensing needs and I get the signed paper applications or information that I need to renew through the NMLS a few days after I request the information or send the applications for signature. Since I submit paperwork that I get back from clients within 48 hours of my receiving it, for some clients, this can mean that they get their renewals processed by the state banking department before the reviewers get hit by a deluge of renewals. I also have clients who do not respond as promptly and I cannot submit the renewals until maybe a day or two before the deadline. For these clients, the renewal process is very slow and may create a problem with closing loans because their license has expired. Some states are kind enough to send me a letter that states that the licensee can still close loans while the renewal is in processing. But other states are too busy to send me such a letter and my mortgage broker clients are sitting tight with their borrowers because their lenders will not let them close without a renewal license.
Don’t wait until the last minute. The NMLS system is new and you don’t want to learn what you need to know just before your license expires. Take a few minutes to find out what your deadlines are and get the pre-licensing education and exams done weeks ahead of schedule. You’ll be the one closing loans while the procrastinators are still waiting for their license approval.
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!
Showing posts with label prelicensing education. Show all posts
Showing posts with label prelicensing education. Show all posts
Tuesday, October 6, 2009
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, April 7, 2009
Did you Miss the Michigan Requirement to Register Loan Officers?
Michigan requires mortgage companies to register loan originators and the deadline was April 1, 2009. If you did not submit registration applications for your loan officers to the NMLS, they cannot originate loans for you now.
The first thing you need to do is notify the Michigan Office of Financial and Insurance Regulation that you are employing a loan officer who is not registered in Michigan. Then the company must register the loan officer through the NMLS. The loan officer must give the employer access to the NMLS record, then the company must request attestation from the loan officer before the company can submit the MU4. Once the loan officer completes the attestation, then the company can submit the MU4.
Loan officers must get fingerprinted to get registered. The company must get an Agency ID number from the Michigan State Police to be used for all loan officers that it employs. If your company is located in Michigan, your loan officers will schedule an appointment for a LiveScan Fingerprint. If you are out-of-state, you need to use FBI fingerprint cards.
In addition to the fingerprinting, Michigan requires 24 hours of pre-licensing education taken through an approved provider. If you have been employed as a loan officer in 4-1/2 out of the last 5 years, you are exempt from the pre-licensing education. Then you have to pass a test with a score of at least 75%.
If your loans officers did not get registered before the April 1, 2009 deadline, your loan officers can originate loans for the next 90 days only if they are not compensated for their originations and if they meet the “notification” requirement (which means that the loan officer had their fingerprints taken, the fingerprints were submitted to the Michigan State Police and the FBI for criminal background checks, there are no disqualifying results from the background check, and the employer notified the Office of Financial and Insurance Regulation of the loan officer’s employment).
The Office of Financial and Insurance Regulation promises to conduct investigations to ensure that loan officers are properly registered. Failure to register your loan officers will lead to penalties and fines.
The first thing you need to do is notify the Michigan Office of Financial and Insurance Regulation that you are employing a loan officer who is not registered in Michigan. Then the company must register the loan officer through the NMLS. The loan officer must give the employer access to the NMLS record, then the company must request attestation from the loan officer before the company can submit the MU4. Once the loan officer completes the attestation, then the company can submit the MU4.
Loan officers must get fingerprinted to get registered. The company must get an Agency ID number from the Michigan State Police to be used for all loan officers that it employs. If your company is located in Michigan, your loan officers will schedule an appointment for a LiveScan Fingerprint. If you are out-of-state, you need to use FBI fingerprint cards.
In addition to the fingerprinting, Michigan requires 24 hours of pre-licensing education taken through an approved provider. If you have been employed as a loan officer in 4-1/2 out of the last 5 years, you are exempt from the pre-licensing education. Then you have to pass a test with a score of at least 75%.
If your loans officers did not get registered before the April 1, 2009 deadline, your loan officers can originate loans for the next 90 days only if they are not compensated for their originations and if they meet the “notification” requirement (which means that the loan officer had their fingerprints taken, the fingerprints were submitted to the Michigan State Police and the FBI for criminal background checks, there are no disqualifying results from the background check, and the employer notified the Office of Financial and Insurance Regulation of the loan officer’s employment).
The Office of Financial and Insurance Regulation promises to conduct investigations to ensure that loan officers are properly registered. Failure to register your loan officers will lead to penalties and fines.
Wednesday, August 29, 2007
Changes to Texas Mortgage Broker Licensing Law
Texas has a new licensing statute that takes effect for applications received on and after September 1, 2007. One of the changes is higher fees to license loan officers: the application fee is $275, $20 is for the recovery fund fee, and $39 is for the background check, for a total of $334.
A mortgage broker company principal will need to have 36 months of origination experience and 90 hours of classroom education taken within the last 2 years if the principal was not previously licensed as a broker or loan officer or 30 hours of classroom education if the principal was licensed as a loan broker. Loan officers must have 18 months of loan origination experience and 30 hours of classroom education taken within the past 2 years or 60 hours of classroom education if the loan officer does not have any origination experience.
Starting January 1, 2008, mortgage broker companies will have to be licensed (unless the company is a sole proprietorship) as well as having the loan officers licensed. The company will have to designate a principal as the company representative and that principal must be a licensed mortgage broker. The company will have to pay a $175 fee for the company license. There are no forms for the company license application created yet.
Additional parts of the changes to the law will take effect on November 1, 2007, however, the regulations to implement those parts have not been finalized.
A mortgage broker company principal will need to have 36 months of origination experience and 90 hours of classroom education taken within the last 2 years if the principal was not previously licensed as a broker or loan officer or 30 hours of classroom education if the principal was licensed as a loan broker. Loan officers must have 18 months of loan origination experience and 30 hours of classroom education taken within the past 2 years or 60 hours of classroom education if the loan officer does not have any origination experience.
Starting January 1, 2008, mortgage broker companies will have to be licensed (unless the company is a sole proprietorship) as well as having the loan officers licensed. The company will have to designate a principal as the company representative and that principal must be a licensed mortgage broker. The company will have to pay a $175 fee for the company license. There are no forms for the company license application created yet.
Additional parts of the changes to the law will take effect on November 1, 2007, however, the regulations to implement those parts have not been finalized.
Friday, December 29, 2006
Pre-licensing education and exams
Some of the states, such as Florida, require a certain number of hours of classroom education before you can take a required exam. Other states, such as New Jersey, require you to pass the exam but do not require any licensing education. Should you take a course even if it is not required? Should you take an online course or a classroom course? What are they testing about anyway?
Prelicensing education and passing a test has been required in some states to ensure that a licensed mortgage broker can't just open up an office and start working with borrowers when they have no idea what they are required to do or know. There are state laws and federal laws that apply to each mortgage transaction and a mortgage broker must know all of the laws that pertain to each transaction. Does your state require certain disclosure forms that must be given to each borrower at the beginning of the process? Do you know how long to keep information in the borrrower files? Do you know what documents must be retained in the borrower file? Does RESPA, 1003, GFE mean anything to you? If you are intending to be a mortgage broker or mortgage lender, you are expected to know the answers to these questions for each state in which you are licensed.
If the state requires classroom education, there is no choice about the matter. The only question is from whom you should take the coursework. If the state schedules all test takers for a particular location, then you should take the coursework right before the exam, in the city in which the exam will be given. An example is Florida. Florida reqires 24 hours of classroom education. The exam is given monthly, generally on the 4th Tuesday of the month (but that schedules changes in November and December). If you are an out-of-state applicant, you will be scheduled to take the exam in Fort Lauderdale. I advise my clients to take the classes in Fort Lauderdale on the weekend before they are scheduled to take the exam. This way they are already where they need to be for the exam and by taking the courses right before the test, they will have the best chance to remember what they were taught. My clients have all passed the Florida test.
Other states, like Georgia, require either a certain number of years of full-time mortgage industry experience or a required number of hours of hours of education which must be given by an approved provider. For example, Georgia requires either 2 years of full-time mortgage industry experience or 40 hours of education from a n approved provider (who are listed on the Georgia Department of Banking website). If you live or vacation in Georgia, you can either take classroom education or online courses. You have to know whether you will have the discipline to really learn the material if you use an online course package or whether you need to have a teacher in front of you to answer questions in order to master the laws and regulations that you will be expected to know once you get your license.
Finally, there are states that don't require prelicensing education but do require that you pass a test. Examples of these states are New Jersey and Illinois. Should you take any courses if they are not required? If you have been a loan officer for a number of years in the state in which you will be taking the test, you may already know the material that will be tested. For those license applicants, a course is not necessary. But if you are a new loan officer in that state, or have never closed a loan in that state, take a preparation course. The time and effort it takes to learn the material in the course will help you to pass the exam. Better to be safe than sorry. If you don't pass the test, you will never get your license.
Prelicensing education and passing a test has been required in some states to ensure that a licensed mortgage broker can't just open up an office and start working with borrowers when they have no idea what they are required to do or know. There are state laws and federal laws that apply to each mortgage transaction and a mortgage broker must know all of the laws that pertain to each transaction. Does your state require certain disclosure forms that must be given to each borrower at the beginning of the process? Do you know how long to keep information in the borrrower files? Do you know what documents must be retained in the borrower file? Does RESPA, 1003, GFE mean anything to you? If you are intending to be a mortgage broker or mortgage lender, you are expected to know the answers to these questions for each state in which you are licensed.
If the state requires classroom education, there is no choice about the matter. The only question is from whom you should take the coursework. If the state schedules all test takers for a particular location, then you should take the coursework right before the exam, in the city in which the exam will be given. An example is Florida. Florida reqires 24 hours of classroom education. The exam is given monthly, generally on the 4th Tuesday of the month (but that schedules changes in November and December). If you are an out-of-state applicant, you will be scheduled to take the exam in Fort Lauderdale. I advise my clients to take the classes in Fort Lauderdale on the weekend before they are scheduled to take the exam. This way they are already where they need to be for the exam and by taking the courses right before the test, they will have the best chance to remember what they were taught. My clients have all passed the Florida test.
Other states, like Georgia, require either a certain number of years of full-time mortgage industry experience or a required number of hours of hours of education which must be given by an approved provider. For example, Georgia requires either 2 years of full-time mortgage industry experience or 40 hours of education from a n approved provider (who are listed on the Georgia Department of Banking website). If you live or vacation in Georgia, you can either take classroom education or online courses. You have to know whether you will have the discipline to really learn the material if you use an online course package or whether you need to have a teacher in front of you to answer questions in order to master the laws and regulations that you will be expected to know once you get your license.
Finally, there are states that don't require prelicensing education but do require that you pass a test. Examples of these states are New Jersey and Illinois. Should you take any courses if they are not required? If you have been a loan officer for a number of years in the state in which you will be taking the test, you may already know the material that will be tested. For those license applicants, a course is not necessary. But if you are a new loan officer in that state, or have never closed a loan in that state, take a preparation course. The time and effort it takes to learn the material in the course will help you to pass the exam. Better to be safe than sorry. If you don't pass the test, you will never get your license.
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