S-A-F-E Mortgage Licensing Act - What Does it Mean For You?

If you are in the mortgage industry, you have probablyown unique exam and set of regulations. For example,
heard about the S.A.F.E. Act, or more formally knownsome states may require you to complete
as the Secure and Fair Enforcement Licensing Act. Dopre-licensing education, while in other states, all you
you know what it is, if it applies to you and how toneed to do is pass the exam. Either way, consider a
comply with this new federal law? Read on for asmall investment in exam prep materials, pass the
general, but informative overview and figure out whatexams the first time and only pay the exam fee (per
you need to do next.state) once.
What is the S.A.F.E. Act?5. Submit fingerprints to the NMLS for a criminal
In July 2008, the Housing and Economic Recovery Actbackground check.
was signed by former President Bush. This act set a6. Submit your authorization for the NMLS to obtain
variety of precedents that changed the way industriesyour credit report.
like real estate and mortgage are able to conduct7.Complete annual continuing education courses
business by implementing stricter laws and regulations.How do I know if S.A.F.E. regulations apply to me?
And the S.A.F.E. Mortgage Licensing Act is a majorAny individual involved with MLO activity such as taking
component of the Recovery Act, which requires alla residential mortgage loan application and/or
mortgage loan originators to register with a Nationwidenegotiating loan terms will need to comply with S.A.F.E.
Licensing System (NMLS) and Registry, satisfyThis includes real estate salespeople who are involved
pre-licensing education and more.with these activities on behalf of their clients. On the
How do I get S.A.F.E. compliant?other hand, if an individual or entity is involved with MLO
There a various steps involved Meet S.A.F.E.activity strictly in an administrative capacity, the S.A.F.E.
standards. Check out the steps below for anlaw does not currently apply to you. For the most
overview of what's involved:up-to-date information, the NMLS Web site is an
1. Register with the NMLS. All mortgage loan originatorsexcellent source. Also, review your state's laws to
will need to receive a unique identifier number, which isensure you cover all of your bases.
received upon registering with the NMLS. The purposeDo I need to comply with the new S.A.F.E. standards if
of the unique identifier number is to track your MLOI work for a bank?
business activity, examination status and pre-licensingNo, if you work for a bank, you do not currently need
education reporting.to satisfy S.A.F.E. MLO licensing standards. According
2. Complete 20-hours of NMLS approved pre-licensingto the NMLS, MLOs who work for an insured
education. This is a requirement of the S.A.F.E. nationaldepository or its owned or controlled subsidiary that is
component. You must complete your education withregulated by a federal banking agency, or for an
approved provider, however, you have flexible optionsinstitution regulated by the Farm Credit Administration,
available like online courses that will betterare registered. All other MLOS must be licenses by
accommodate your schedule - focus on leads andstate.
income first, satisfy your 20-hours in your free time.Where can I learn more about S.A.F.E. regulations,
3. Pass the National Exam. All MLOs must pass aincluding finding a NMLS approved education?
100-question national exam.For the most recent information concerning the S.A.F.E.
4. Pass state exams for the states you conduct MLOact, visit the NMLS Web site. There you can learn
activity in. Do you conduct MLO activity in California,more about this federal law, find regulations by state,
New Jersey and Pennsylvania? Then you will need toimportant deadlines, helpful how-to tutorials and a
pass an exam for each state. And each state has itsdirectory of approved education providers.