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How can I learn more about what a career in mortgage lending really offers?
Visit the career information section of our Web site for a helpful overview of the exciting world of mortgage lending. Talking to successful professionals is another great way to learn more about being a mortgage broker on a daily basis. Check out our free articles to help you decide if a career in mortgage lending is right for you!
What are the education and testing requirements?
Maine law requires anyone seeking licensure as a supervised lender, loan broker or registered officer to complete a minimum of 16 credit-hours of education prior to qualification. Of those 16 credit-hours, at least two hours must consist of a review of Maine laws and rules and two hours of ethics and ethical considerations affecting the mortgage industry.
What is the Maine Division of Banking?
The Office of Consumer Credit Regulation oversees many aspects of the consumer
finance industry, including non-bank mortgage lenders, debt collectors, loan
brokers, retail creditors, money transmitters, credit reporting agencies and
non-bank ATMs. The office administers state credit-related statutes and protects
consumers by conducting compliance examinations, responding to consumer
complaints, issuing licenses and providing consumer education and outreach.
Is Maine a "brick and mortar state" ?
No, a loan broker does not need to maintain a physical office in the state.
However, it does need to be licensed by the Maine Office of Consumer Credit
Regulation (OCCR), and registered as a foreign (i.e.) out-of-state) corporation
with the Maine Secretary of State's Corporate Division's Office. A loan broker
must also post a $25,000 surety bond.
What is a Loan Broker?
As defined in the Maine Consumer Credit Code, the phrase loan broker means any
person that provides or offers to provide the following services for
compensation: improving a consumer's credit record, history, or rating;
arranging for or obtaining an extension of credit for a consumer; or providing
advice or assistance to a consumer regarding the procurement of consumer credit
or the improvement one's credit record, history, or rating.
Must an applicant have previous experience in order to qualify for license?
No, previous loan broker experience is not required. However, the licensing
standard is that "upon investigation, the Administrator finds that the financial responsibility, character, and fitness, of the applicant, and where applicable, its partners, officers, or directors, warrant belief that the business will be operated honestly and fairly within the purposes of this Title (Maine Consumer Credit Code, Title 9-A, Maine Revised Statutes Annotated (MRSA))." Please note that a loan broker's initial application (main office or branch) does require submission of a resume of the principal party(s).
in addition, two letters of professional regernce are also required.
How long does it take to receive a decision on license approval?
If your application is complete and you have met the requirements to operate as
a loan broker in the state of Maine, your license will typically be approved
within three weeks following receipt by OCCR.
Are there any net worth requirements for approval of loan broker license?
No, there are no net worth requirements for a loan broker; however, to become
licensed, a loan broker must post a $25,000 surety bond and be prepared to
demonstrate financial responsibility.
How long is the licensing period for?
Two years - February 1 through January 31. (2006-08, 2007-09, 2008-10, etc)
Do I need a college degree to become a mortgage broker?
No. For a mere fraction of the cost of an associate’s or bachelor’s degree, you could be earning a six-figure income as a mortgage pro! For more details on state certification requirements, click here.
What kind of financial investment does it take to start a career in mortgage lending?
Next to nothing. For under $450, you can be certified and ready to cash in on this lucrative career.
Should I get any additional books on the subject?
Sure, reading as much as you can about succeeding as a new mortgage broker is a wise strategy. ProSchools offers an array of books in our online bookstore.
What are the continuing education and testing requirements?
Effective February 10, 2007, Rule 500 requires all loan officers to complete 12 credit-hours of education annually. Of those 12 credit hours, one hour must consist of a review of Maine laws and rules and one hour of ethics and ethical considerations affecting the mortgage industry.
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 her 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:
- Screen individuals for no felonies in the last 7 years (certain felonies, like fraud, dishonesty, breach of trust, or money laundering NEVER)
- Screen individuals for no previous license revocations
- Require proof of financial responsibility using a credit report
- Require prelicense testing and education
- Require continuing education
- Provide for license renewals on an annual basis
- 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.
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