Licensing FAQ
hat are the SAFE Act minimum requirements to be a licensed loan originator?
The SAFE Act mandates minimum requirements to be a licensed loan originator. The minimum requirements under the SAFE Act are:
- Complete 20 hours of NMLS-approved prelicense education. The education must include a minimum of 3 hours of federal law, 3 hours of ethics, and 2 hours of non-traditional mortgage products.
- Submit fingerprints through NMLS for a criminal background check.
- Authorize a credit report through the NMLS.
- 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.
- Register with the Nationwide Mortgage Licensing Registry (NMLS).
Do I need state-specific hours to meet my prelicense education requirement?
It depends on what state you are getting a loan originator license. Several states have state-specific hours required and some states require more than the SAFE Act-mandated 20-hour minimum. You may view a comprehensive list of each states' requirement here.
Can the prelicense education be completed online for North Carolina?
No. All states but North Carolina allow the education to be completed online. North Carolina only allows the prelicense education to be completed in the classroom-equivalent and classroom formats. You may find a list of courses available for North Carolina on the NMLS website.
Does ProSchools have state-specific courses approved?
ProSchools has dozens of 20-hour state comprehensive courses approved, including all states that require state-specific hours. These courses are designed to prepare you for the National and State Components of the SAFE Loan Originator Tests. In addition, ProSchools offers a state law course for all states requiring state-specific hours.
What is included in ProSchools' SAFE Loan Originator Test Prep courses?
All ProSchools SAFE Loan Originator Test Prep courses include lessons, reviews, plus dozens of questions designed to simulate the SAFE MLO Test Components. ProSchools has the National SAFE MLO Test Prep course and a SAFE MLO Test Prep course for virtually every state.
What exactly is an NMLS "unique identifier"?
Each loan originator registered in the NMLS, National Registry, will be permanently assigned a number that will help electronically track them. A loan originator's unique identifier will not change as he or she moves from state to state. In fact, the process of being licensed in additional states is streamlined by just adding the new state's license to the current record.
Do I need an NMLS "unique identifier" to have my credits banked with the NMLS or enroll for the SAFE Loan Originator Test?
Yes. To have your credits banked or to enroll for the SAFE Loan Originator Test you must have a Unique Identifier. The NMLS Resource Center makes it easy to get registered and receive your unique identifier.
What is the purpose of the SAFE Mortgage Loan Originator Test?
As required by the SAFE Act, the SAFE Mortgage Loan Originator Test is designed to adequately measure an individual’s knowledge and comprehension in appropriate areas, to include:
- Ethics
- Federal law and regulation pertaining to mortgage origination
- State law and regulation pertaining to mortgage origination
- Federal and State law and regulation, including instruction on fraud, consumer protection, the nontraditional mortgage marketplace, and fair lending issues
The SAFE Mortgage Loan Originator Test includes two components: a National Component and a State component.
Will Mortgage Loan Originators have to take a test for each state or jurisdiction they conduct loan origination activities?
Mortgage Loan Originators will have to pass the State Component for each state or jurisdiction they conduct loan origination activities. The National Component will only have to be passed once.
What are the fees for taking the SAFE Mortgage Loan Originator Test?
The National Component is $92 and each State Component is $69.
Is prelicense education required prior to taking the SAFE Mortgage Loan Originator Test?
No. It is recommended to take prelicense education prior to taking the SAFE Mortgage Loan Originator Test but not required.
What is the SAFE Mortgage Licensing Act?
SAFE stands for Secure and Fair Enforcement for Mortgage Licensing Act of 2008. The law went into effect July 2008. It is Title V of a 700-page piece of legislation entitled the Housing and Economic Recovery act of 2008. The Act is designed to protect consumers by requiring states to use uniform standards for licensing individuals wanting to serve as loan originators. Uniform standards include registry in a national database of loan originators, education and testing requirements, and screening individuals with background checks for past felonies and demonstrated financial responsibility.
Who does the SAFE Mortgage Act impact?
The SAFE Mortgage Licensing Act applies to all loan originators. A loan originator is anyone who is compensated to take a residential mortgage loan application and offer or negotiate terms of a residential mortgage loan.
What is the NMLS or NMLSR?
NMLS is the Nationwide Mortgage Licensing System and Registry. Each applicant is required to submit applicant information, including fingerprints, personal history and experience. This information is stored in a national database of mortgage originators, developed and maintained by the Conference of State Bank Supervisors.
Who do I contact if I have questions about the NMLS?
For questions relating to the Nationwide Mortgage Licensing System, please contact the NMLS Call Center at (240) 386-4444.
Who do I contact if I have questions about my states requirements?
For questions relating to your states specific requirements, you may access a list of all state regulators' websites here.