LEARN MORE ABOUT THE NMLS AND LICENSING REQUIREMENTS
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Background
On July 30, 2008, the President Bush signed into law the Housing and Economic
Recovery Act of 2008. Title V of this Act, entitled The Secure and Fair Enforcement
Mortgage Licensing Act of 2008 (“S.A.F.E. Act”), recognizes and builds on states efforts
by requiring all mortgage loan originators, regardless of the type of entity they are
employed by, to be either state-licensed or federally-registered. All mortgage loan
originators must be licensed or registered through the expanded Nationwide
Mortgage Licensing System and Registry.
Under the S.A.F.E. Act, all states must implement a mortgage loan originator licensing
process that meets certain minimum standards and must license loan originators
through NMLS.
Overview – Professional Requirements
The Secure and Fair Enforcement for Mortgage Lending Act of 2008 (SAFE Act)
established requirements for the licensing and registration of all Mortgage Loan
Originators (MLOs). MLOs who work for an insured depository or its owned or
controlled subsidiary, are registered. All other MLOs are to be licensed by the states.
The SAFE Act requires state-licensed MLOs to pass a written qualified test, to
complete pre-licensure education courses, and to take annual continuing education
courses. The SAFE Act also requires all MLOs submit fingerprints to the Nationwide
Mortgage Licensing System and Registry (NMLS) for submission to the FBI for a
criminal background check and state-licensed MLOs to provide authorization for NMLS
to obtain an independent credit report. The Test, Education, and Background Checks
links from this page explain how state-licensed MLOs can satisfy each of these
professional requirements.
Please note that while the SAFE Act requires NMLS to fulfill certain responsibilities
associated with providing educational services or ensuring background checks are
completed, it is individual state law that determines when a state-licensed MLO is
required to take the SAFE Mortgage Test, complete pre-licensure or continuing
education training, and when state-licensed MLOs are required to complete their
background checks.
Education Requirements
The Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (SAFE Act)
requires that state-licensed mortgage loan originators (MLOs) complete pre-licensure
and annual continuing education.
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