Some states feel like they are a long ways off before needing to complete NMLS requirements. Vermont feels like one of those states, but we’re getting calls, so here is a quick re-cap of what Vermont mortgage loan originators should expect.
Vermont mortgage loan originators need to:
- Complete at least 20 hours of NMLS-approved prelicense education. Like all states, the hours must include at least (3) hours of federal laws and regulations; (2) hours of ethics, including instruction on fraud, consumer protection, and fair lending; and (2) hours related to lending standards for the nontraditional mortgage product marketplace.
- Pass the SAFE Mortgage Loan Originator Test. The SAFE Mortgage Loan Originator test is actually two exams, a national exam and a state exam, which may be taken separately. ProSchools recommends that you take your course first, and then take your test, but you can complete the requirements in any order.
- Submit fingerprints to the NMLS. It is anticipated that you can begin submitting fingerprints to the NMLS November 1, 2009.
- Meet bonding requirements. The bonding requirement is a graduated dollar amount based upon the amount of loans originated in Vermont.
- Demonstrate financial responsibility, experience, character and general fitness. Plan on submitting your personal history and experience information to the NMLS. Credit reports and credit scores will also be reviewed.
To ensure a smooth transition, current Vermont mortgage brokers and loan officers working before December 31, 2009, must complete all licensing requirements by July 1, 2010.
Mortgage brokers and loan officers that enter the business on or after January 1, 2010 must complete all Vermont licensing requirements before acting as a loan originator.
Even though current LOs have till July 1, 2010 to meet requirements of the SAFE Act, the NMLS is strongly urging folks to plan ahead and get it done now. I remind people that they have to wait 30 days if they fail the SAFE test, and although no one wants to plan on failing it, why chance it? Word on the street is you have to study! ProSchools has the NMLS-approved course and exam prep available.