<?xml version="1.0" encoding="UTF-8"?><rss version="2.0"><channel><title><![CDATA[Integrity Mortgage Licensing - State Mortgage Li]]></title><description><![CDATA[Articles]]></description><link>http://www.integritymortgagelicensing.com/</link><copyright><![CDATA[Copyright Integrity Mortgage Licensing - State Mortgage Li]]></copyright><generator>sNews CMS</generator><item><title><![CDATA[What Types of Mortgage Company Licenses Are Available in California]]></title><description><![CDATA[  Before discussing how to get a California Mortgage Company License, we need to first discuss what type of mortgage license you should get.  There are three (3) different types of Mortgage Company Licenses offered in California. The Department of Real Estate offers the California Department of Real Estate (DRE) Corporate License with the Nationwide Mortgage Licensing System (NMLS) Company Endorsement.  The Department of Corporations (DOC) offers two different types of mortgage company licenses, the California Finance Lender License (CFL) and the California Residential Mortgage Lender License (CRML).  All three of these license types have different requirements for approval and allow different activities.  It is very important to decide up front what license works best for you, so let’s take a look and compare each of them.  I’ll be using a lot of acronyms, so refer to the above paragraph if you’re not sure what each acronym means.    

  Allowable Activities    
All three license types allow companies to broker, bank/lend, or service residential mortgages.  The CRML License is the only license type that allows a company to sub-service residential mortgages, which means to service loans that are owned by another company.  The CFL License and DRE License both allow a company to originate commercial mortgage loans.  The CFL License is the only license that allows a company to originate non-secured commercial or personal loans.    

	The CFL License has a major restriction that needs to be pointed out.  The CFL License only allows CFL brokers to broker mortgage loans to a CFL Lender.  This means that a CFL broker can’t broker to DRE companies, CRML companies, or federally or state chartered banks, unless those companies also hold a CFL License.  However, there is no restriction regarding what companies a CFL lender can sell loans to.  The restriction solely applies to brokering loans.  The CFL License also has a restriction on funding loans on warehouse lines provided by a non-CFL Licensed investor that will be purchasing the loan.  The way the law reads is, "The finance company shall provide funding for the loan from sources exclusive of any funding advances received from an institutional investor committed to purchasing the note."  Here is the law on this:    10 CA ADC § 1460. Real Estate Secured Loans: Sale to Institutional Investors         

  Minimum Net Worth    
	Net Worth is the company’s assets minus the company’s liabilities.  Each license type has different minimum net worth required for approval.    

The DRE License has no minimum net worth requirement.  The CRML License has a $250,000 minimum net worth requirement, which must be audited by a CPA.  The CFL License has a $250,000 minimum net worth requirement if the company is funding residential mortgage loans and $50,000 if the company is brokering residential mortgage loans.  If the company is only originating commercial mortgage loans and non-secured loans, then the minimum net worth for the CFL License is only $25,000.  Financials for CFL do not need to be audited.    

  Other Major Requirements    
	Following are some of the other major requirements and barriers for each license type.  You’ll notice that they are all very different in what they require.    

The DRE License requires the company to designate an individual with a California Department of Real Estate (DRE) Individual Broker License as the Broker/Officer of the company.  In order to get an Individual DRE Broker License, a person must complete 60 hours of education, show proof of 2 years full-time mortgage experience, pass the DRE Broker Test, which is only offered in California, and then submit an application for the Individual DRE Broker License.  Since a person can be the Broker/Officer for multiple companies, often companies that don’t have an Individual DRE Broker employed with their company, will contact someone that already holds the Individual DRE Broker License to be their Broker/Officer, and then pay them a monthly fee to act in this capacity.  However, this can get expensive. This requirement is the most burdensome part of obtaining a DRE License, and is the reason most companies will consider one of the other two license types.    

The CFL License does not have any major requirements that are burdensome other than the minimum net worth mentioned above.    

The CRML License requires that the company have a Federal Agency Approval with either FHA, VA, Fannie Mae, or Freddie Mac.  FHA, Fannie Mae, and Freddie Mac all require $1million in net worth to get a lender approval from them.  However, Veterans Authority (VA) does not have any minimum net worth requirement to get a lender approval from them.  And the best part is you never even have to do any VA loans once you get this lender approval from VA.  So currently this loophole basically eliminates this major barrier to getting a CRML License.  However, there is currently one other major issue to obtaining the CRML License.  The CRML License requires that the company has a funding source or is in the process of obtaining a funding source to fund their loans.  The regulators that approve the CRML Licenses believe that the CRML License is not for companies that just want to broker mortgage loans.  So the regulators will look for liquidity in the company that will allow the company to fund loans with their own money, or the regulators will look for a warehouse line of credit to fund the mortgage loans.  The regulators will in most cases accept a letter of explanation and proof that the company is in the process of obtaining cash investors or a warehouse line of credit, but this is somewhat of a grey area and must be handled carefully.  Although the CRML License allows a company to broker loans, the regulators interpretation of the CRML law is that the company must plan on using the license to bank mortgage loans also.    

  Loan Originator Licensing    
	There are two different types of loan originator (LO) licenses in California.  There is the DRE NMLS LO Endorsement issued by the Department of Real Estate, and there is the DOC LO License issued by the Department of Corporations.  The DRE NMLS LO Endorsement is used by loan originators working for DRE companies.  The DOC LO License is used by loan originators working for CFL or CRML companies.    

	The DRE NMLS LO Endorsement is much harder to get than the DOC LO License.  The DRE NMLS LO Endorsement requires 3 tests, 60 hours of education, and 2 applications.  The DOC LO License only requires 2 tests, 20 hours of education, and 1 application.  The reason for this difference is that the DRE requires a loan originator to first hold a DRE Individual Salesperson License or Individual Broker License before they can complete the NMLS requirements.  To get a DRE Individual Salesperson License, a person needs to complete 40 hours of education, take the Salesperson test that is only offered in California, and submit an application for a DRE Individual Salesperson License.  Then the DRE requires the DRE Salesperson to apply for the DRE NMLS LO Endorsement, which requires 2 more tests, 20 more hours of education, and a separate application.  The portions through the NMLS for DRE and DOC are virtually identical, but again, the DRE requires the person to hold a DRE Individual Salesperson or Broker License before they can apply for the NMLS Endorsement, making the DRE LO Licensing requirements much more difficult.    

  Total Cost    
	Each license type has varying types of costs to consider.  The DRE Corporate License application costs $300.  And the DRE NMLS Company Endorsement application, which must also be obtained by DRE companies, costs $500.  So the total cost under the DRE is $800.  However, a company must also take into consideration the costs of licensing and endorsing a DRE broker/officer for the company.  Between the education, testing, fingerprinting, and application fee, the cost to get a DRE Individual Broker License can be as much as $1,000 to $1,500.  And if the company wants to hire a DRE Individual Broker instead of getting someone within the company licensed, the cost is usually about $500 to $1,000 per month.    

	The CFL License application costs $400.  There is also a surety bond required, which costs about $250.  And there is fingerprinting which costs about $50 per officer/owner.  So the total cost under the CFL is about $700.    

	The RML License application costs $1,100.  There is also a surety bond required, which costs about $500.  And there is fingerprinting, which costs about $50 per officer/owner.  So the total cost under the RML is about $1,650.  However, under the RML, there are a few other costs to consider.  If the company doesn’t already have a Federal Agency Approval, then the cheapest one to obtain is from Veterans Authority.  The cost for Veterans Authority Lender Approval is $200.  If the company doesn’t already have audited financials, then the company will need to pay a CPA to complete this.  The cost ranges from $800 to $1,000 for start-up companies, and goes up to as much as $3,000 to $5,000 for existing companies.  Also, another major cost to consider under the RML License is the cost of renewal.  If a company does no business during the year, the cost to renew is $1,000, but if a company closes even just one loan during the year, the cost to renew goes up to $5,000.    

  Conclusion    
	California is the most confusing state for deciding what type of license your company should get.  Make sure to consider all of the differences very carefully, and if you still have questions, make sure to contact a mortgage licensing specialist such as Integrity Mortgage Licensing for help.      ]]></description><pubDate>Tue, 11 Oct 2011 16:31:41 +0000</pubDate><link>http://www.integritymortgagelicensing.com/mortgage-licensing-news/what-types-of-mortgage-company-licenses-are-available-in-california/</link><guid>http://www.integritymortgagelicensing.com/mortgage-licensing-news/what-types-of-mortgage-company-licenses-are-available-in-california/</guid></item><item><title><![CDATA[Customer Testimonials]]></title><description><![CDATA[  
  
"After having a bad experience with another licensing service, I was referred to Steven at Integrity Mortgage Licensing. His service and professionalism has been outstanding. Steven helped us get to 5 state licenses and is currently working with us on our next 10 states. I would recommend Steven if you need help getting advice on licensing and with extremely reasonable prices."  www.hlemortgage.com     –   Thysy Trinh, Manager at Home Loan Enterprise      


"I would like to 'Thank you' for your prompt responses to my NMLS issues. At this time, I am approved in all the states I have applied for. What took months previously, now took a few days with some direction from you. Thank you again."  www.directorsfinancial.com     -   Donald Tilly, Branch Manager at Directors Financial Group      


  "My company hired   Integrity Mortgage Licensing   to get licensed in 10 states. Based on the speed, professionalism and genuine concern for my company's well being we have hired IML to take us into a total of 40 states.  IML’s  impressive experience and personal relationship with the state regulatory agencies made the licensing process smooth and simple.  IML also had the best prices of all   mortgage licensing services   when I shopped around. Feel free to contact me for a personal reference at   www.JoinCRL.com  "   -   John Cole, President of CRL      

  "Thanks for all of your help Steven.  You did a great job.  You were always available when I needed you.  You got me approved, so I know you're good at what you do.  It was a bargain to have someone knowledgeable to make sure I didn't miss anything.  The wait time is long enough for FHA approval without having flaws or missing items.  I would recommend you to others."      www.LegendFinancialServices.com   -   Mark Hammond, President of Legend Financial Services      

  “Steven was great to work with in accomplishing all the steps necessary to update my licensing. He helped me to feel secure during the tedious process.”      www.Spectra-Funding.com   -   Terri Poulin, Loan Originator at Spectra Funding      

  “Steve is a great worker, very honest, and very thorough. I'd completely trust him to handle all of my licensing issues as I have in the past.”      www.secondarymg.com   -   Greg Shanberg, Partner at Secondary Marketing Group      

  "Equity Source has used Steve to handle a lot of our Branch and Loan Officer licensing. Steven has done an excellent job in handling our licensing needs, is thorough, and very knowledgeable. I would recommend anyone to utilize the services he has to offer....you will not regret it.”    -   Adam Finkelstein, Director of Branch Operations at Equity Source Home Loans      

  “I have worked with Steven Sheasby on several projects and feel he is a major asset to the mortgage industry. Integrity Mortgage Licensing is one of the best companies to work with for Mortgage Licensing. They are reasonable with their cost, very knowledgeable with all the States requirements for licensing, State Compliance, and more. I would recommend to anyone that I talk with.”   www.mortgagebrokersnetwork.com     -   Gary Lacey, CEO of Mortgage Brokers Network      
]]></description><pubDate>Wed, 28 Sep 2011 15:21:06 +0000</pubDate><link>http://www.integritymortgagelicensing.com/customer-testimonials/customer-testimonials/</link><guid>http://www.integritymortgagelicensing.com/customer-testimonials/customer-testimonials/</guid></item><item><title><![CDATA[Texas Mortgage Servicer Licensing now required]]></title><description><![CDATA[On June 17, Texas Governor Rick Perry signed into law S.B. 17, the Residential Mortgage Loan Servicer Registration Act, which requires all residential mortgage loan servicers in Texas to register with the Commissioner of the Texas Department of Savings and Mortgage Lending (Commissioner). The Mortgage Servicer Registration is required for companies acting purely in a servicing capacity, such as sub-servicers, as well as mortgage bankers acting as residential mortgage loan servicers, i.e. servicing their own portfolios. As of the date of this article, the application for the Mortgage Servicer Registration has not been released by Texas yet. For a copy of S.B. 17, please see http://www.legis.state.tx.us/tlodocs/82R/billtext/pdf/SB00017F.pdf#navpanes=0.]]></description><pubDate>Mon, 27 Jun 2011 10:33:39 +0000</pubDate><link>http://www.integritymortgagelicensing.com/mortgage-licensing-news/texas-mortgage-servicer-licensing-now-required/</link><guid>http://www.integritymortgagelicensing.com/mortgage-licensing-news/texas-mortgage-servicer-licensing-now-required/</guid></item><item><title><![CDATA[Florida In-House Processors no longer need LO Licensing]]></title><description><![CDATA[Florida law previously required persons acting solely as loan processors to secure a loan originator license.  On May 31, the Governor of Florida signed into law a bill to relieve in-house loan processors from individual licensing in Florida. Specifically, the bill excludes in-house loan processors from individual licensure, so long as the individual (i) is an exclusive employee of a single mortgage broker or a mortgage lender, (ii) under direct supervision and instruction of a licensed Florida loan originator, and (iii) engages in loan processing only (i.e., receiving, collecting, distributing, and analyzing information for processing a mortgage loan or communicating with consumers to obtain information necessary to process a mortgage loan [not including offering or negotiating or counseling consumers about mortgage loan rates or terms]). Independent Contract loan processors remain subject to loan originator licensing requirements in certain circumstances.  This amendment brings Florida's law more in line with the federal Secure and Fair Enforcement for Mortgage Licensing Act (S.A.F.E.) and other state jurisdictions with respect to treatment of mortgage loan processors.     

The bill additionally requires mortgage lenders to submit reports of their financial condition to the NMLS registry and to authorize the NMLS registry to obtain a credit report for each of the mortgage lender's control persons in order to renew a mortgage lender license. The bill becomes effective July 1, 2011. ]]></description><pubDate>Thu, 23 Jun 2011 10:20:50 +0000</pubDate><link>http://www.integritymortgagelicensing.com/mortgage-licensing-news/florida-inhouse-processors-no-longer-need-lo-licensing/</link><guid>http://www.integritymortgagelicensing.com/mortgage-licensing-news/florida-inhouse-processors-no-longer-need-lo-licensing/</guid></item><item><title><![CDATA[Montana Mortgage Servicer Licensing now required]]></title><description><![CDATA[On May 5, 2011, Montana adopted House Bill No. 90, which made numerous revisions to the Montana Mortgage Broker, Mortgage Lender, and Mortgage Loan Originator Licensing Act (Act) and changed its title to the Montana Mortgage Act. The revisions included requirements for the licensing and regulation of mortgage servicers. The effective date of the changes is October 1, 2011.  And as of the writing of this article, Montana has not yet released an application to apply for the new Mortgage Servicer License.     

The revisions also updated application and licensing requirements for brokers, lenders and originators, made a reduction in the number of hours required for continuing education, made changes to recordkeeping, reporting, bonding and disclosure requirements, and made prohibitions against certain acts by mortgage lenders and mortgage servicers. In addition, the Act was revised to conform to federal law and expand the Department of Administration's rulemaking authority.]]></description><pubDate>Thu, 23 Jun 2011 10:14:07 +0000</pubDate><link>http://www.integritymortgagelicensing.com/mortgage-licensing-news/montana-mortgage-servicer-licensing-now-required/</link><guid>http://www.integritymortgagelicensing.com/mortgage-licensing-news/montana-mortgage-servicer-licensing-now-required/</guid></item><item><title><![CDATA[Discounted NMLS Education Courses]]></title><description><![CDATA[  Integrity Mortgage Licensing has partnered with ProSchools, Inc. to offer our customers a 10% discount for all NMLS Approved License Education Courses that are now required for loan originator licensing due to the SAFE Act.  This includes the NMLS Pre-License Education and the NMLS Continuing Education Requirements.    

Please use the following link to place your order for 10% off any Education Course offered by ProSchools.
  http://www.proschools.com/Mortgage-Lending.aspx?pc=imlicensing99      

If the Referral Code doesn’t automatically populate when you go to your shopping cart, you can enter this Referral Code:   imlicensing99   for 10% off any Education.    

We also have an account representative at ProSchools that is dedicated to our customers in case you need to ask any questions or want to purchase courses by phone.  Just make sure to mention the Referral Code to get the 10% discount.    

  Michael Jackson | Account Rep | ProSchools, Inc.    
10225 SW Park Way  
Portland, OR 97225  
T: 800-452-4879 ext 851  
F: 503-297-8905  
E:    michaelj@proschools.com    
      

    Enroll now in your mortgage training course!    ]]></description><pubDate>Thu, 02 Jun 2011 09:05:23 +0000</pubDate><link>http://www.integritymortgagelicensing.com/discounted-nmls-mortgage-education/discounted-nmls-education-courses/</link><guid>http://www.integritymortgagelicensing.com/discounted-nmls-mortgage-education/discounted-nmls-education-courses/</guid></item><item><title><![CDATA[Hawaii delays NMLS Mortgage Company and LO Licensing]]></title><description><![CDATA[Hawaii has Amended the SAFE Act Compliance Legislation and extended the Deadline for Mortgage Loan Originator Registration. On May 7, the Governor of Hawaii, Linda Lingle, signed into law legislation (S.B. 2603) to amend Hawaii's Secure and Fair Enforcement for Mortgage Licensing Act (SAFE Act) compliance law, which was passed last year.    

The new law delays the deadline for licensure of mortgage loan originators via the Nationwide Mortgage Licensing System (NMLS) until January 1, 2011. Also, mortgage loan originators who are licensed with Hawaii as of December 31, 2010 have until November 30, 2011 to be licensed via NMLS. Additionally, The law requires certain independent contractors (including mortgage loan originators, processors and underwriters) to be licensed as "mortgage loan originators." Finally, the law replaces an existing surety bond requirement with the Mortgage Loan Recovery Fund, which assesses a fee to licensees based on the number of registered offices and mortgage loan originators. For a copy of the bill, please see   http://www.capitol.hawaii.gov/session2010/bills/SB2603_CD1_.pdf.  ]]></description><pubDate>Mon, 14 Jun 2010 11:31:47 +0000</pubDate><link>http://www.integritymortgagelicensing.com/mortgage-licensing-news/hawaii-delays-nmls-mortgage-company-and-lo-licensing/</link><guid>http://www.integritymortgagelicensing.com/mortgage-licensing-news/hawaii-delays-nmls-mortgage-company-and-lo-licensing/</guid></item><item><title><![CDATA[Colorado Mortgage Companies must now be Licensed]]></title><description><![CDATA[Colorado now requires Mortgage Companies to be licensed by the state.  On May 26, 2010, Colorado Governor Bill Ritter, Jr. signed a bill (H.B. 10-1141) that (i) creates a new state mortgage regulatory division, the Board of Mortgage Loan Originators, and (ii) establishes registration deadlines for mortgage loan originators and mortgage companies via the Nationwide Mortgage Licensing System (NMLS). Mortgage companies, as well as individual mortgage loan originators, must be licensed via NMLS by January 1, 2011.    

The law establishes a new licensing category of "mortgage company," defined as entities that take residential mortgage loan applications or offer or negotiate the terms of a residential mortgage loan. The new law exempts from mortgage company licensing requirements banks, savings associations, subsidiaries owned and controlled by a bank or savings association, employees of bank or savings association or its subsidiaries, credit unions, and employees of credit unions. Mortgage companies will be overseen by the newly-created Board of Mortgage Loan Originators, which will, among other things, have the authority to impose fines and deny license applications or renewals.  For a copy of the bill, please see  ]]></description><pubDate>Mon, 14 Jun 2010 11:21:55 +0000</pubDate><link>http://www.integritymortgagelicensing.com/mortgage-licensing-news/colorado-mortgage-companies-must-now-be-licensed/</link><guid>http://www.integritymortgagelicensing.com/mortgage-licensing-news/colorado-mortgage-companies-must-now-be-licensed/</guid></item><item><title><![CDATA[The SAFE Mortgage Licensing Act]]></title><description><![CDATA[The SAFE Mortgage Licensing Act (Title V of P.L. 110-289, the Secure and Fair Enforcement for Mortgage Licensing Act of 2008) was signed into law in July 2008. It requires every loan originator taking a residential mortgage loan application from a consumer to obtain a mortgage loan originator (MLO) license from the State Agency in which the subject property is located. And the States are required to set certain minimum requirements for obtaining the MLO License. So what are these minimum requirements? How does it affect loan originators in the mortgage business? And how are states implementing this federal mandate?    

  Education      

Twenty (20) hours of education is one of the major requirements. In order to get a license, a mortgage loan originator must complete 20 hours of pre-licensing education that is offered by an approved education provider. Completion of one 20 hour course complies with this requirement for all states. The course will usually cost around $299 to $399. However, some states also require an additional 1 to 5 hours of state-specific education in addition to the federally mandated 20 hour course. Always keep in mind when trying to understand these new requirements, that each state is under a federal mandate to meet certain minimum requirements for licensing MLOs, but the state always has the right to set their standards higher than the federal mandate. Any states where you have done previous education to maintain a loan originator license prior to these new requirements may allow you to certify those past hours to meet this new requirement.    

Also, eight (8) hours of continuing education is required each year to renew your license. Completion of one 8 hour course complies with this requirement for all states. However, just like the pre-licensing education, some states require an additional 1 to 5 hours of state-specific education each year as well.    

  Testing      

The SAFE Act also requires that MLOs complete a test to obtain a mortgage loan originator license. To comply with this requirement, the states have worked together to make a National Test that covers federal laws and regulations for mortgage origination. This test is only required to be passed once for all states. However, each state has also developed their own state-specific test component. So the National Test and the State Test must be completed to obtain a license. Any states where you have done previous testing to obtain a loan originator license prior to these new requirements may allow you to certify those past tests to meet this new requirement. The National Test would still be required, but you could be exempt from having to take the state test. The National Test costs $92 and the State Tests cost $69 each. The tests only need to be passed once to obtain the license and never need to be taken again. And make sure to study for the tests. Only Sixty-Seven Percent (67%) of applicants are passing the National test.    

  Criminal Background Check      

Each state is required under the SAFE Act to complete a criminal background check on MLO License applicants. To implement this there is a federal fingerprinting that can be paid for when you submit an MLO License application. When fingerprints are taken, they are sent to the FBI and the FBI reviews them and puts together a report of any criminal convictions that match your record. These criminal background check reports are then sent to the state to review. Because the federal fingerprinting only checks the FBI database, some states have decided to also require their own fingerprinting that would check their state criminal database. So you will definitely have to complete the Federal Fingerprinting once, but you also may have to complete a state fingerprinting requirement in some states. The federal fingerprinting costs $39 and the state fingerprinting ranges from $25 to $60.    

The minimum requirements under SAFE Act state that no one can obtain a Mortgage Loan Originator (MLO) License if they have had any felonies in the last 7 years or if they have ever had a felony that was financial services related, such as fraud, theft, bribery, check forgery, etc.    

  Credit Background Check      

Under the SAFE Act, each state is required to review a credit report. Unfortunately, unlike the specific nature of the minimum criminal background requirements, the SAFE Act is not specific as to what the minimum credit requirements are.    

Mosts states have not released details on what they will be looking at on the credit reports and most states are not reviewing credit reports at this time. Every state that is currently requiring credit reports to be mailed to them is setting different standards, but there are basically 3 different ways I am seeing states handle it.    


1. Some states are not telling applicants the minimum credit required, but are declining apps for credit issues (This is the worst situation, because you don't know if the state will accept the credit until you apply)  
2. Some states are telling applicants the minimum credit required. For example they are saying any one with a score lower than 580 must provide a letter of explanation about how they are fixing their credit issues and will be financially stable going forward. (This is still not good, but at least you know if the LO will possibly have an issue if they apply)  
3. Some states are just keeping a copy of the credit report in their file, but they are not looking at it.    


My hope is that the federal government issues regulations that define what the states need to look at on the credit. Then we will know for sure whether someone meets those standards or not. At this time, most states have not issued any details on what they will be looking at.    

  Application      

States are required to obtain a license application with certain minimum information. All states have a license fee associated with the application that ranges from $50 to $500. Completion of the application is required to be completed through a system called the Nationwide Mortgage Licensing System (NMLS), which now takes us to the final question. How are the states implementing these new requirements?    

  Nationwide Mortgage Licensing System (NMLS)      

This system is a privately owned website that was created for the sole purpose of handling all of the states new mortgage licensing requirements all in one place. Most states have also decided to handle company and branch license applications through this system along with the Mortgage Loan Originator (MLO) License applications. The system is just a website that the states use to receive applications and comply with this new federal mandate under the SAFE Act. The NMLS does not review or approve license applications. The system allows for submitting a license application to a state electronically, it has a function to pay for the National and State Tests, a function to pay for the federal fingerprinting, and will soon also have a function to pay for the credit report to be sent to each state you want to obtain a license in. It also tracks the status of each MLO License and shows when education, test, and fingerprinting have been completed. And the states use the system to post deficiencies for a license when the state needs additional information.    

  Conclusion      

Unfortunately, all of this new licensing is costing companies and mortgage loan originators a lot of money. It is creating a huge burden on mortgage companies that is then mostly being passed down to consumers. The system has had many difficulties in working with states existing laws to transition everyone onto the system. Hopefully, going forward, these new requirements will set accountability in the mortgage industry and benefit consumers. However, we are more likely to see the cost of obtaining a mortgage go up and the amount of oversight by state agencies diminish as the states now have less resources to enforce state laws and instead must focus their attention to all of the complexities of meeting these new licensing requirements. If you are in the mortgage industry, do not wait start the steps to meet these new requirements. It is a long and burdensome process, so start as soon as you can.    ]]></description><pubDate>Wed, 05 May 2010 09:41:13 +0000</pubDate><link>http://www.integritymortgagelicensing.com/mortgage-licensing-news/the-safe-mortgage-licensing-act/</link><guid>http://www.integritymortgagelicensing.com/mortgage-licensing-news/the-safe-mortgage-licensing-act/</guid></item><item><title><![CDATA[California DRE now requires Mortgage Loan Originator Endorsement through NMLS]]></title><description><![CDATA[California Department of Real Estate now requires Salespersons and Brokers to obtain an endorsement to their license through the NMLS if they want to use their license to originate residential mortgage loans.

By January 31, 2010, or within 30 days of commencing the activity whichever is later, all licensees must report to the Department of Real Estate if they make, arrange or service loans secured by real property. This requirement applies to both residential and commercial businesses. The report must be completed online using Form RE 866- Mortgage Loan Activity Notification. Future business activity reporting will also be required.    

Penalty fees can apply for failure to submit this required notification. Penalties are fifty dollars ($50) per day for the first 30 days the report is not filed and one hundred dollars ($100) per day for every day thereafter not to exceed a maximum of $10,000.        



The following steps must be completed in order to comply with SB 36 and the SAFE Act by January 1, 2011:    

Register on the Nationwide Mortgage Licensing System and Registry (NMLS&R)    

The NMLS&R will contain a single license record for each mortgage loan lender, broker, branch and mortgage loan originator (MLO). A fee is not required to create this initial NMLS&R base record, however, this first registration step is needed to initiate the necessary examination process.    


Satisfy the federal requirements for MLO licensure. Requirements include new qualification assessments, federal and state examinations, and background checks. There are no exceptions to or exemptions from these requirements for existing licensees.    


By January 1, 2011, be issued an MLO endorsement on your real estate license. Endorsement applications for qualified MLO registrants must be submitted electronically to the NMLS&R by September 15, 2010 to be issued by January 1, 2011. Review the qualification and examination requirements before you initiate the electronic application process.    

The initial MLO license endorsements will expire on December 31, 2011. MLO endorsements are issued annually and expire December 31st each year. The endorsement will carry a nationwide identification number known as a “unique identifier” which will be assigned by the NMLS&R. The term and license identification number of the “base” real estate license will not change. Real estate licensees will continue to be responsible for filing the necessary renewal and record update requirements to maintain their four year real estate license separate from the MLO endorsement.     

Penalty fees can apply for failure to obtain a license endorsement. Penalties are fifty dollars ($50) per day for the first 30 days the report is not filed and one hundred dollars ($100) per day for every day thereafter not to exceed a maximum of $10,000.    ]]></description><pubDate>Tue, 04 May 2010 13:32:42 +0000</pubDate><link>http://www.integritymortgagelicensing.com/mortgage-licensing-news/california-dre-now-requires-mortgage-loan-originator-endorsement-through-nmls/</link><guid>http://www.integritymortgagelicensing.com/mortgage-licensing-news/california-dre-now-requires-mortgage-loan-originator-endorsement-through-nmls/</guid></item></channel></rss>