Illinois Requires Licensing of Mortgage Loan Originators

Illinois passed a bill requiring the licensing of loan originators. Under the bill, mortgage loan originators and loan processors of underwriters acting as independent contractors must obtain a license under the Residential Mortgage License Act of 1987, unless exempt. The bill also establishes loan originator requirements with respect to education, exemptions, fees, renewals, bonds and notifications. In addition, the bill requires all application forms, solicitations and advertisements to contain the NMLS unique identifier of the person originating the mortgage loan. The bill became effective on July 31, 2009; however, mortgage loan originators and loan processors of underwriters acting as independent contractors have until July 31, 2010 to obtain a license.

Kansas becomes part of NMLS Mortgage Broker Licensing

Kansas adopted rules amending the Mortgage Business Act. Under the rules, mortgage loan originators are required to complete 20 hours of education and pass a written test prior to licensure. The rules also amend surety bond requirements, increase licensing fees for branch offices and establish additional record retention requirements for mortgage companies.

Kansas also adopted rules amending the Uniform Consumer Credit Code. Under the rules, mortgage loan originators are required to complete 20 hours of education and pass a written test prior to licensure. The rules also require mortgage loan originators to annually complete at least 8 hours of continuing education. In addition, the rules amend surety bond requirements and establish additional record retention requirements for supervised lenders.

The rules become effective October 2, 2009; however loan originators are not required to take a written test prior to licensure until on or after July 31, 2010.

NMLS-APPROVED SAFE MORTGAGE LOAN ORIGINATOR TEST AVAILABLE FOR MARYLAND

We are pleased to announce that NMLS-approved SAFE mortgage originator test components – both the national and the Maryland component – are now available for enrollment and scheduling.  The first test appointments for the Maryland component will be available on October 22nd.  The national component has been available since July 30, 2009.  Registration is now open and we recommend that originators register now in order to be able to take the test in October.

• Effective January 1, 2010, applicants for a NEW Maryland Mortgage Loan Originator License will be required to complete the test PRIOR to licensure.  Prior to January 1, 2010, the Commissioner of Financial Regulation will grant conditional approval with the requirement that the test be completed on or before January 1, 2010.
• Applicants who were exempt from licensure prior to July 1, 2009 and who applied for a NEW Mortgage Loan Originator License with Interim status will have until July 31, 2010 to complete the testing requirement.
• Existing licensees as of July 1, 2009 will transition to NMLS in conjunction with the renewal of their license and have until December 31, 2010 to complete the testing requirement.  Please note that HUD recently issued guidance (FAQs) that addresses the issue of grandfathering existing licensees in connection with the testing requirement, as follows:

Question: May a state’s SAFE legislation contain a grandfathering provision allowing mortgage brokers and others who have engaged in the business of originating loans for an extended period of time meet the SAFE Act’s testing and education requirements by some alternative means? 

Answer: “No. The SAFE Act does not allow alternative methods for meeting the testing and education requirements.” 

Based on this guidance, ALL existing Mortgage Loan Originator licensees as of July 1, 2009 must complete the testing requirement by December 31, 2010

California Enacts SAFE Act Legislation - NMLS Mortgage Broker Licensing

On October 11, California Governor Arnold Schwarzenegger signed into law S.B. 36, a bill that requires the employees of licensees under the California Finance Lenders Law (CFLL) and the California Residential Mortgage Lending Act (RMLA) that are engaged in the business of mortgage loan origination to be licensed, beginning July 1, 2010. The bill similarly requires licensees under the California Real Estate Law (REL) to obtain an endorsement from the Commissioner of the California Department of Real Estate to engage in the business of mortgage loan origination, beginning December 1, 2010. Mortgage loan originator license and endorsement applicants are required to, among other things, (i) submit to fingerprinting for the purpose of a criminal history background check, (ii) complete at least twenty hours of pre-license education, and (iii) pass a qualified written test developed by the Nationwide Mortgage Licensing System (NMLS). The bill further provides that licensed mortgage loan originators must complete at least eight hours of continuing education annually and must disclose their NMLS identifier on all residential mortgage loan application forms, solicitations, and advertisements. The bill also enacts other related provisions, such as requiring REL licensees to submit an annual business activities report to the Commissioner of the California Department of Real Estate.

North Carolina Annual Mortgage Broker License Renewal Notice

NC Commissioner of Banks Office

Mortgage Licensing Division

Location: 316 W. Edenton Street, Raleigh, NC 27603

Mailing Address: 4309 Mail Service Center, Raleigh, NC 27699-4309

Telephone: 919-733-0589 Fax: 919-733-2978 Internet: www.nccob.org

October 16, 2009

Company Annual License Renewal Notice

RENEW YOUR LICENSE ONLINE AT: www.stateregulatoryregistry.org/NMLS BEFORE DECEMBER 31, 2009

The Renewal Period will begin November 1st and end December 31st (11:59 ET). Prior to the renewal period all records must be up-to-date and any outstanding deficiencies cleared. Under the provisions of the SAFE Mortgage Licensing Act (SAFE), all licensees are required to keep all material information filed with the North Carolina Commissioner of Banks (NCCOB) up-to-date and current by notifying this office of any change. You are strongly encouraged to log into your NMLS account and review your specific deficiencies prior to November 1, 2009. Failure to clear outstanding deficiencies such as those listed below may delay or result in a denial of your company and branch (es) renewal request.

All Licensees- The NC Mortgage Annual Report Questionnaire (ARQ) was required to be filed by March 31, 2009, via the NCCOB website. This questionnaire collects only North Carolina loan data and is now based on a calendar year, January through December. (https://www.nccob.org/Online/NMLS/Default.aspx)

Mortgage Lenders- Lenders should have uploaded into the NMLS an audited statement of financial condition within 90 days of their fiscal year end that demonstrates a net worth of at least one hundred thousand dollars ($100,000) https://www.statemortgageregistry.com/Public/Default.aspx. In addition, if not shown on the audited financial statements provide evidence of a warehouse line of credit of one million dollars ($1,000,000) or other evidence of funding capacity to conduct mortgage originations. If not on the financial statement a copy of the warehouse line of credit agreement should be emailed to LJohnson@nccob.gov. (North Carolina will not prevent renewal this year for failure to show evidence of the warehouse line of credit)

Mortgage Brokers- Mortgage Brokers should have uploaded into the NMLS a certified balance sheet that demonstrates a net worth of at least twenty-five thousand dollars ($25,000). https://www.statemortgageregistry.com/Public/Default.aspx In addition, provide evidence (in the form of a copy of a bank statement or other verifiable document) that the your company owns cash or other liquid assets in a demand deposit account under the firm's name of at least ten thousand dollars ($10,000) in an FDIC-insured financial institution. This should be emailed to JKillion@nccob.gov.

A company will have the option to either renew and pay for its sponsored licensed mortgage loan originator(s)“MLO” or delegate the responsibility to the “MLO’s”. We encourage companies to submit a renewal for the company, all branches, and all sponsored mortgage loan originators together, as one filing, to expedite the renewal process.

Annual License Renewal Fee (Company) $725

Annual License Renewal Fee (Per Branch) $145

Annual License Renewal Fee (Per MLO) $97.50

All licenses will expire on December 31, 2009, if not timely renewed. To reinstate a company and/or branch license the licensee must pay the annual renewal fee and the reinstatement fee of $250. The deadline for reinstatement of a license is February 28, 2010; thereafter, a new application for licensure must be filed.

All fees are non-refundable.