Posts Tagged ‘NMLS’

Continuing Ed for MLOs

September 22, 2016


The fall is here, and I know what that means… time to complete annual Continuing Education so I can keep my Mortgage Loan Originator (also called MLO) License.

I am happy to say, I’ve completed the steps for another renewal. Yeah! But what exactly goes into a renewal if you do not work for a bank? It is a good question that I’ll happily address.

For Mortgage Loan Officers working for non-depository institutions (such as mortgage brokers or licensed mortgage lenders like I am at Dunwoody Mortgage Services), there are several hoops to jump through each year:

  1. Need to complete an approved 8 hours continuing education course.
  2. Must authorize a background check every other year. If a felony is on an employee’s record, then their license is revoked. Georgia will not allow felons to have a license to work as a MLO. The background is done on a regular basis since an arrest could occur after the initial background check.
  3. Must authorize a credit report check that looks at more than just a credit score:
    • Any unpaid judgements will result in a license suspension and possible revocation.
    • If a MLO is behind on child support or alimony, it will cause the license to be suspended and possible revoked.
    • Must be current on mortgage payments and student loans.
    • Foreclosures are also a big no-no.
    • Bankruptcies and other debt delinquencies can cause problems on a license renewal

In short – to be licensed to work in the mortgage industry, the MLO must not be a felon, pay their bills, and not be behind on any child support/alimony/court ordered payments.

What about MLOs that work for banks? What do they need to do to keep their license? That is up to the bank really as the only requirement for their MLO license renewal is to be employed by a bank. It is the bank’s responsibility to address the continuing education and vetting of their employees. Technically, that means MLOs that have a felony on their record (The Georgia felony requirement doesn’t apply to nationwide banks, but does apply to local Georgia banks such as Resurgens Bank), or are behind on the child support, have their own home foreclosed upon, etc. can still work with clients to purchase a home if a large bank is willing to hire them.

It turns out that the most educated and vetted individuals working in the mortgage industry actually don’t work for banks.

Want to buy a home in the state of Georgia? Want to work with a professional that is educated, vetted, and has a decade of experience originating mortgages? Contact me today. I am more than happy to help you get going!


Why the mortgage process seems so different

June 23, 2011

Many changes occurred in the mortgage industry over the last couple of years. In this post, I want to spend some time highlighting a few of the major changes.

Non bank loan officers now must be license and bonded. They are required to take federal and state tests, have good credit and complete continuing education in order to keep the license. This is a very good improvement for our industry. Now the requirements to be a loan officer for a non-depository institution (in other words, a company that isn’t a bank) are the highest in the industry to both earn and maintain a license. This has caused a lot of loan officers to exit the industry or go to work for a bank.

The next time you apply for a loan, remember the loan officer that does not work for a bank is the only licensed professional in the mortgage industry which has passed a federal and state test, is bonded, passed a background check and is required to take continuing education courses.

The new Good Faith Estimate has been enacted by HUD. The government attempted to create a process which is less confusing for the consumer and easier to understand the cost associated with the mortgage process. Things haven’t exactly gone to plan. In some ways, the new form is more confusing. The confusion mostly stems from increasing the size of the good faith estimate from a one-page form (which disclosed all the fees individually) to a three-page form (that only shows lump sum fees). Since the introduction of the new good faith estimate, some consumers feel it has created more confusion than clarity.

Regulation Z has been enacted by the Federal Reserve. This regulation has had a lot of controversy around the requirements it imposes on the mortgage industry. There are many facets to Regulation Z, and it really deserves a post (or two) by itself. In short, the Federal Reserve claims these regulations will protect the consumer. However, many professional in the industry argue it creates greater confusion to the consumer and restricts competition. Traditionally, any restriction in competition usually leads to an increased cost placed on the consumer. Rather than trying to explain the details of this complicated rule, just know the consumer is always best protected by getting 2 or 3 quotes to insure they are getting a competitive rate.

These are the main events that have occurred in the last 18 months. More change is coming soon when the consumer protection bureau takes control in late July. This new government entity is a result of the Frank Dodd Act.  The mortgage industry has gone from limited government intervention to extreme intervention since the mortgage crisis. I am amazed that loan officers which do not work for a bank have been required to pass tests, required to take 20 hours of education, required bank ground checks, and continuing education, while loan officers that work for bank are not required to meet these guidelines. It is ironic that bank employees are given the least amount of training, regulation, and oversight with all the new guidelines.

The one thing to remember in all of this is to make sure you always get a quote from a non-bank loan officer when looking for a mortgage. The non-bank loan officers are now the most trained and educated in the entire mortgage industry.