Are you a state-licensed mortgage loan originator wondering about the newly passed SAFE Mortgage Licensing Act of 2008and how it affects your license status? There are many changes that have come with the SAFE Act, and before you explore the new continuing education requirements, you should first make sure you have met the latest pre-licensing requirements. Even if you already have your mortgage loan originator license, you must complete the 20 hours of pre-licensing education courses approved by the Nationwide Mortgage Licensing System and Registry (the NMLSR, which was created by the SAFE Act) before January 1, 2011. However, you do not have to complete these pre-licensing education requirements if you have already completed your state’s pre-licensing education requirements and your state can verify that these 20 hours of education have been fulfilled successfully. Furthermore, this pre-licensing education requirement only needs to be met and documented once with the NMLSR, even if you want to apply for more mortgage licenses.

In addition to meeting all of the requirements necessary in order to maintain your mortgage loan originator license under the SAFE Act, you must also effectively pass the new SAFE Mortgage Loan Originator Test. All mortgage loan originators, regardless if you already hold a license or are in the process of earning one, must pass the SAFE Mortgage Loan Originator Test. So even if you were already a mortgage loan originator before the SAFE Act, you still have to pass the new national NMLSR approved test. Once you have successfully completed the national mortgage licensing exam, you can then start taking the necessary steps to renew your license each year and to stay up-to-date with the mortgage industry.

The next step for you to stay current with the new requirements of the SAFE Act is to complete the continuing education requirements. The best way for you to be up-to-date with the rules and regulations of the SAFE Act and the mortgage industry is for you to complete at least 8 hours of continuing education each year. This continuing education must consist of at least 3 hours covering federal laws and regulations, 2 hours of ethics (including fraud, consumer safeguards, and fair lending), and 2 hours about nontraditional mortgage lending. Like pre-licensing education courses, the continuing education courses must be approved by the NMLSR. However, the NMLSR does not actually offer pre-licensing or continuing education mortgage courses so that it can remain an independent entity. In addition, it is significant for you to keep in mind that your continuing education credits only count for the year in which you complete them. Also, mortgage loan originators who have just earned their license do not need to complete continuing education in the same year either. One last useful tip to remember is that you cannot take the same continuing education class in the same year or the years following that class.

Would you like to learn more information about the SAFE Mortgage Licensing Act and all of its educational and licensing requirements? Click here to read an overview of the SAFE Act.