| With the S.A.F.E. Mortgage Licensing Act passing on | | | | mortgage loan originator as an employee or |
| June 30, 2008, there are a lot of changes expected to | | | | independent contractor of a licensed Delaware |
| happen soon in mortgage licensing. At this time, only | | | | Mortgage Broker or Lender. The legislation requires a |
| about one third of the states are in compliance with | | | | mortgage loan originator to apply to the Office of the |
| the federal law, and since most states are not going to | | | | State Bank Commissioner for a mortgage loan |
| want to hand over their licensing to the federal | | | | originator license, establishes initial and continuing |
| government, you can expect for many new laws to | | | | education requirements for licensees, and authorizes |
| be passed in the near future. Here are some recent | | | | the Commissioner to adopt regulations to facilitate |
| changes to be prepared for. | | | | participation in the Nationwide Mortgage Licensing |
| Michigan Loan Originator Licensing | | | | System. The bill requires that loan originator licensees |
| As of January 1, 2009, Loan Originator must be | | | | have at least 18 hours of education courses within the |
| licensed to originate mortgage loans. Prior to that date, | | | | five years prior to licensure, or within one year |
| Michigan only required Loan Originators to be w-2 | | | | following licensure. Applicants may work as mortgage |
| employees of a licensed mortgage company. The | | | | loan originators upon initial employment on a temporary |
| new law requires the Loan Originator to have either | | | | basis until the person is either licensed or the application |
| 4.5 years of experience originating loans in the last 5 | | | | is denied. Applicants must submit a $250 investigation |
| years or take a 24 hour live education course. Once | | | | fee and a $250 annual license fee. |
| either experience or education is met, then the Loan | | | | Rhode Island Loan Originator Licensing |
| Originator is required to take a Michigan Loan | | | | Licensing requirements for Rhode Island Loan |
| Originator Test. The test just became available on | | | | Originators are now posted on the Nationwide |
| October 21, 2008. Loan Originators must then complete | | | | Mortgage Licensing System (NMLS) website. A Loan |
| fingerprint cards or live scan fingerprinting and go on to | | | | Originator license must be obtained by January 1, 2009 |
| the Nationwide Mortgage Licensing System (NMLS) | | | | in order to continue originating in the state of Rhode |
| and submit a Loan Originator (MU4) application and | | | | Island. The application requires fingerprint cards, 20 |
| then mail all of the previous documentation directly to | | | | hours of pre-licensure education, a personal financial |
| the state. Everything is currently due to the state by 12 | | | | statement showing a positive net worth, a copy of a |
| 4/08 to guarantee that a Loan Originator License is | | | | valid photo ID (for example, driver's license), and the |
| issued by 1/1/09, however, details on the fingerprinting | | | | submission of a Loan Origiantor Application (MU4) on |
| process has not been released yet, so I expect them | | | | the NMLS. Applications are due by 11/1/08 in order for |
| to give Loan Originators an extension. Keep in mind, | | | | applications to be approved by 1/1/09. Also, starting in |
| that it is just my opinion, so don't delay in following the | | | | the 2nd quarter of 2009, Rhode Island expects to |
| state requirements and meeting the deadlines. | | | | have a testing requirement. |
| Delaware Loan Originator Licensing | | | | Nationwide Mortgage Licensing System |
| Delaware House Bill 508 becomes effective on | | | | New states transitioning onto the NMLS on November |
| January 1, 2009, but mortgage loan originators will not | | | | 1, 2008 are: Arkansas, Indiana, Pennsylvania, and |
| be required to obtain a license until the State Bank | | | | Wyoming. Michigina began transitioning on October 1, |
| Commissioner adopts regulations implementing the | | | | 2008. All of these states require transitions to be |
| new licensing laws. At this time, there is nothing on the | | | | completed by December 31, 2008. Also, most states |
| states website implementing the Delaware Loan | | | | already on the NMLS will be using the NMLS for |
| Originator Licensing requirement, so it will probably not | | | | renewals. There are currently 19 states on the NMLS |
| be requred until later in 2009. HB 508 defines a | | | | and all states are expected to be on by 2010. |