| Are you in the mortgage industry? Then you have | | | | other states, all you need to do is pass the exam. |
| probably heard about the S.A.F.E. Act, or more | | | | Consider a small investment in exam prep materials. |
| formally known as the Secure and Fair Enforcement | | | | That way, you can pass the exams the first time and |
| Licensing Act. | | | | only pay the exam fee (per state) once. It's the smart |
| What is the S.A.F.E. Act?In July 2008, the Housing and | | | | way to keep your MLO career on track. |
| Economic Recovery Act was signed by former | | | | Finally, submit your fingerprints to the NMLS for a |
| President Bush. This act set a variety of | | | | criminal background check, authorize the NMLS to |
| precedents that changed the way industries like real | | | | obtain your credit report and complete annual |
| estate and mortgage are able to conduct business by | | | | continuing education courses. |
| implementing stricter laws and regulations. And the | | | | Now that you know what is involved, how do you |
| Secure and Fair Enforcement for Mortgage Licensing | | | | know if you need to get S.A.F.E. compliant? Any |
| Act is a major component of the Recovery Act, | | | | individual involved with MLO activity such as taking a |
| which requires all mortgage loan originators to register | | | | residential mortgage loan application and/or negotiating |
| with a Nationwide Licensing System (NMLS) and | | | | loan terms will need to comply with S.A.F.E. This |
| Registry, satisfy pre-licensing education and more. | | | | includes real estate salespeople who are involved with |
| Are you ready to get S.A.F.E. compliant? How do I get | | | | these activities on behalf of their clients. On the other |
| S.A.F.E. compliant?First, all mortgage loan originators will | | | | hand, if an individual or entity is involved with MLO |
| need to receive a unique identifier number, which is | | | | activity strictly in an administrative capacity, the S.A.F.E. |
| received upon registering with the NMLS. The purpose | | | | law does not currently apply to you. For the most |
| of the unique identifier number is to track your MLO | | | | up-to-date information, the NMLS Web site is an |
| business activity, examination status and pre-licensing | | | | excellent source. Also, review your state's laws to |
| education reporting. | | | | ensure you cover all of your bases. |
| Second, MLOs must complete 20-hours of NMLS | | | | If you work for a bank, you do not currently need to |
| approved pre-licensing education. This is a requirement | | | | satisfy S.A.F.E. MLO licensing standards. According |
| of the S.A.F.E. national component. You must complete | | | | to the NMLS, MLOs who work for an insured |
| your education with approved provider, however, you | | | | depository or its owned or controlled subsidiary that is |
| have flexible options available like online courses that | | | | regulated by a federal banking agency, or for an |
| will better accommodate your schedule – focus on | | | | institution regulated by the Farm Credit Administration, |
| leads and income first, satisfy your 20-hours in your | | | | are registered. All other MLOS must be licenses by |
| free time. Plus, you will be ready to take the national | | | | state. |
| exam, which consists of 100 questions. | | | | For the most recent information concerning the S.A.F.E. |
| Next, take the state exam(s). Did you know that you | | | | act, visit the NMLS Web site. There you can learn |
| will need to pass an exam for every state you | | | | more about this federal law, find regulations by state, |
| conduct MLO activity for?And each state has its own | | | | important deadlines, helpful how-to tutorials and a |
| set of regulations. For example, some states may | | | | directory of approved education providers. |
| require you to complete pre-licensing education, while in | | | | |