To assist you during the mortgage loan process to either finance a new home purchase or to refinance the loan you currently have on your home, I as a Mortgage Loan Originator (MLO) need to be licensed.
This section is providing information to help you understand that the industry is very serious about its mortgage professionals ensuring we are educated and to provide you, the customer, the highest degree of service. As an MLO, I am supervised under the S.A.F.E. act. What does this mean?
The Housing and Economic Recovery Act of 2008 is comprised of several signficant housing laws that address the dramatic rise in mortgage delinquencies and foreclosures in the residential mortgage market. Included, is the S.A.F.E. Act which establishes minimum standards for state licensing of residential mortgage loan originators in order to increase uniformity, improve accountability, combat fraud, and enhance consumer protections. The S.A.F.E. act also requires states to participate in the Nationwide Mortgage Loan System and Registry (NMLS), more commonly referred to as the NMLS. My NMLS ID# is 1952750.With some exceptions,
employees from the following entities are not required to obtain a license. They may only be required to register with the NMLS.
All other individuals, like me,
- A covered financial institution, such as a Federally insured bank or a Credit Union
- A government housing agency
- A bona-fide nonprofit institution
must obtain a license from the state they will be originating residential mortgage loans. In order to obtain a license, the following requirements must first be met:
- Show financial responsibility, character, and general fitness. It is expected that MLO's demonstrate financial health at a level that the community can have confidence in them and that they will operate in an honest and fair manner, according to the standards of their respective states.
- Complete, at a minimum, 20 hours of pre-licensing education approved by the NMLS along with addtional state-specific pre-and post-licensing requirements.
- Get a score of at least 75% correct answers on the NMLS' written test (which, by the way, is extremely detailed, tricky, and very encompassing). States also require a test specific to their laws or give the Uniform State Test.
- Receive coverage for Errors & Ommission (E&O) Insurance and Surety Bond.
- Submit fingerprints to the NMLS for an FBI state and national criminal history background check. Colorado also requires the same under the Department of Regulatory Agencies for Real Estate under DORA.
- Submit an accurate and thorough personal and residential history along with experience documented to the NMLS that includes:
- An indepentent Credit Report.
- Any information regarding administrative, civil, or criminal findings in any jurisdiction.
Additionally, to maintain an MLO license, annual continuing education, insurance & bond coverage, plus updated personal information to the NMLS is mandatory.
Thank you for reading through this and rest assured, I am very serious about my commitment to serving you.
. . . Toni Ann Brock