ProSchools just got Iowa Division of Banking approval for the 20-hour loan originator prelicense course. One of the requirements under Title V of the Secure and Fair Enforcement of Mortgage Licensing Act (SAFE), requires mortgage loan originators (MLOs) to meet minimum standards for education and passing an exam.
Beginning January 1, 2009, Iowa loan originators who are new in the business will be required to complete 20 hours of education and pass a state exam. The hours need to include at least 3 hours of federal laws and rules; 3 hours of ethics, including fraud, consumer protection, and fair lending issues; and 2 hours of training relating to lending standards for nontraditional mortgage products (this could be any product that is not a 30-year fixed rate mortgage).
ProSchools has a couple different offerings. We have the full 20-hour online course approved and it includes an exam prep to prepare people for the exam. Loan originators should not have to buy additional study materials to get ready for the exam, and they can print out their certificate showing proof of completion once they finish the course. Our recommendation is to take the exam immediately after completing the course so the information is still fresh.
We are also offering exam prep by itself for those mortgage loan originators that may already have the education but need help passing the state exam. ProSchools’ exam prep has tons of practice tests and a lot of information to reinforce the important topics expected on the exam. Some states are adopting a limit on the number of times an applicant can take the examination, so that can add some pressure if you’re not prepared. The Nationwide Mortgage Licensing System (NMLS) is responsible for development of the exam and the approval of courses that will satisfy the NMLS education requirement. NMLS has not yet approved providers for courses.
Lastly, we have three new CE courses approved which cover SAFE topics: Federal Laws and Rules for Loan Originators (3 hrs), Ethics: Fraud, Consumer Protection, and Fair Lending (3 hrs), and Lending Standards: Nontraditional Mortgage Products (2 hrs). These eight hours are included in the 20-hour course. So Iowa Loan Originators, let us know if you have questions!