What are the requirements to be a loan originator in Illinois?
The SAFE Act requires loan originators to be licensed. The minimum requirements under the SAFE Act are:

1. 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.
2. Submit fingerprints through NMLS for a criminal background check. Existing licensees approved before July 1, 2009 have until December 31, 2010 to submit fingerprints. New applicants as of July 1, 2009 have until June 30, 2010 to submit fingerprints.
3. All licensees will be required to authorize a credit report through NMLS between October 2010 and March 1, 2011.
4. Pass the SAFE Mortgage Loan Originator Test. The SAFE Mortgage Loan Originator test is two exams, a national exam and a state exam, which may be taken separately.
5. Register with the Nationwide Mortgage Licensing Registry (NMLS).

What are the deadlines to meet the education and testing requirements in Illinois?
To permit an orderly transition to the new Illinois loan originator licensing requirements, the deadlines to meet the education requirement and pass the National and Illinois Components of the SAFE Mortgage Loan Originator Test are:

New Loan Originators Applying as of January 16, 2010:

1. Complete 20 hours of NMLS-approved prelicense education prior to applying.
2. Pass the National Component of the SAFE Mortgage Loan Originator Test prior to applying and pass the Illinois Component by May 15, 2010. The Illinois Component of the SAFE Mortgage Loan Orginator Test will be available April 12, 2010.

Established Loan Originators (Licensed prior to July 31, 2009):

1. Established loan originators who have completed 20 hours of state-approved education by December 31, 2009 must have their education certified by an Illinois approved certification source.
2. Loan Originators who have not completed 20 hours of state-approved education by December 31, 2009 will have to complete 20 hours of NMLS-approved prelicense education by December 31, 2010.
3. Established loan originators licensed prior to July 31, 2009 must pass both the National and Illinois Components of the SAFE Mortgage Loan Originator Test by December 31, 2010.

Established Loan Originators (Licensed after July 31, 2009):

1. Established loan originators licensed after July 31, 2009 (including those who were required to restart) must complete 20 hours of NMLS-approved prelicense education by June 30, 2010.
2. Established loan originators licensed after July 31, 2009 (including those who were required to restart) must pass both the National and Illinois Components of the SAFE Mortgage Loan Originator Test by June 30, 2010.

Should I complete the minimum 20 hours of NMLS-approved education and pass the National Component of the exam before the deadline?
Yes. Loan originators are encouraged to begin the prelicense education and testing early and can take the national components separately from the state requirements.

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 Illinois' requirements?
For questions relating to Illinois' state-specific requirements visit their website.

Can the prelicense education be completed online?
Yes. The NMLS allows courses to be completed in online instructor-led, classroom-equivalent and classroom formats.

Will ProSchools' NMLS-approved prelicense courses help me to pass the SAFE Loan Originator Test? Do I need to purchase exam prep?
ProSchools' prelicense courses have been designed to prepare you to pass the SAFE Loan Originator Test. When you enroll in one of ProSchools' prelicense courses you will be preparing for the SAFE Loan Originator Test while you complete your mandatory education so purchasing exam prep is not necessary.

What is "credit banking" and how does it work?
The NMLS requires all completed hours to be "banked" with the NMLS. ProSchools, as your NMLS-approved course provider, will transmit your completion record to the NMLS within 7 days of you finishing your coursework and your session has ended. The NMLS charges $1.50 per credit hour to bank your credit hours.

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.

When will the SAFE Mortgage Loan Originator Test be available?
The National Component and several State Components are available now or will be offered soon. Each states component will be made available in accordance with each state’s SAFE Act implementation schedule.  

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. Mortgage loan originators who have successfully passed a state required test previously may not have to take the State Component for that state. The state regulatory agency will be able to verify if the State Component is required.

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.

What information will be in the NMLS database?
The database will contain licensing information, enforcement actions and background data for every state-licensed mortgage broker, loan originator and lender. Those individuals operating in states without licensing requirements will have the opportunity to submit information voluntarily.

What type of application form is used to get a mortgage originator's license?
The NMLS has four application forms: MU1, MU2, MU3, and MU4.

Mortgage originators use the Form MU4, which is the Uniform Individual Mortgage License/Registration and Consent form. It is submitted to the jurisdiction where the applicant is filing. A mortgage originator must be affiliated with an employer for the form to be submitted. Certain employing brokers submit this form in behalf of their loan originators.

Form MU1 is the Uniform Mortgage Lender/Mortgage Broker form that is required to be completed and submitted by companies and sole proprietorships. Each MU1 form must be accompanied by at least MU2 form that identifies the firm's key persons in control. Finally, the MU3 form is used to sign up a branch office with the NMLS.

What are the minimum state license standards as a result of the SAFE Act?
SAFE Act requires that any system developed by a state to license individuals to serve in a mortgage lending capacity must have at least the following features:

1. Screen individuals for no felonies in the last 7 years (certain felonies, like fraud, dishonesty, breach of trust, or money laundering NEVER)
2. Screen individuals for no previous license revocations
3. Require proof of financial responsibility using a credit report
4. Require prelicense testing and education
5. Require continuing education
6. Provide for license renewals on an annual basis
7. Include a bond, net worth or recovery fund

What this means is that states will require background checks, including fingerprinting, and credit checks of individuals seeking licensure. In addition, prelicense education and testing systems and continuing education requirements will be developed and monitored.

Does this mean that current state requirements go away?
No. In fact, the federal law is considered to be the minimum. States may mandate additional licensing or education requirements beyond those required by the SAFE Act.

What authority does the state agency retain with this new federal NMLS system?
Each state agency retains authority to approve, deny, suspend, or revoke mortgage originator licenses. The NMLS is only an electronic repository of applications and renewals.