Looks like starting January 4, 2010, the California Department of Corporations will implement Senate Bill 36, getting California mortgage originators in compliance with the SAFE Act passed in 2008. The SAFE Act requires all mortgage loan originators to be licensed through the NMLS.
Who needs the license? Anyone who provides services as a mortgage loan originator in California needs to apply for and get a license by July 31, 2010. We’re told there’s an estimated 45-50,000 people needing to get licensed.
Each mortgage loan originator applicant needs to submit a completed Form MU4 through the NMLS. Their license won’t be approved until a sponsorship request is submitted by the their employer.
California wants LOs to submit all their paperwork by May 28, 2010 in order to give the DOC enough time to review and process the applications. They will receive an “Approved-Conditional” license status once the MU4 filing is reviewed by the DOC and all the other license requirements are met. In order to receive full ”Approval” status, the mortgage loan originator must have all requirements met by July 31, 2010.
Here is a check list of what CA loan originators need to do prior to the 7/31/2010 deadline:
- Complete 20 hours of NMLS-appoved education.
- Pass the National and California components of the SAFE test.
- Pass a background check, including fingerprints.
- Authorize an independent credit report.
- Be sponsored in NMLS by the employing company.
Couple of other things regarding the SAFE Test…the state portion of the test will be available by February 22, 2010 and people can enroll for the test starting January 22, 2010.
ProSchools has a 20-Hour NMLS-approved course available for someone that wants to get their education done now. They would need an exam prep for the California component, which ProSchools will have by January (we include it free with the National course). Even though California does not require state-specific hours as part of the education, ProSchools is developing a 20-Hour California SAFE Comprehensive course which includes state-specific information to help LOs prepare for the SAFE Test.
California mortgage loan originators will also need to take 8 hours of continuing education to renew their license annually by December 31. But don’t worry about CE for now…get your 20 hour pre-license course done early!