Imagine a career where you can help people achieve one of the greatest personal financial investments of their lives. To guarantee that consumers receive the best service from their mortgage loan originators and to make sure that their investment is competently protected, the SAFE Mortgage Licensing Act was passed in 2008. With the passage of this Act came many changes to the requirements that are necessary in order to become a mortgage loan originator. These new requirements affect both the education and licensing of previously licensed mortgage loan originators and those in the process of earning their mortgage loan originator license.


Licensing Requirements
In addition to specific educational and testing requirements, you must meet certain standards and rules in order to earn you mortgage loan originator license. First, it is crucial for you to never have had your mortgage loan originator license rescinded. If you were previously licensed and your mortgage loan originator license was revoked at any point in the past, you may not pursue the renewal of your license. In addition, it is important for you, as a licensee, to be respectable and of good character in order to earn the respect and trust of your clients and your professional community. You can earn this respect by displaying financial accountability, positive disposition, and continual consistency as a mortgage loan originator. Additionally, you must have either compensated into a State fund, met a net worth obligation, or have met a surety bond obligation in order to be licensed.

Another important general licensing requirement is for you to complete the proper background checks. Background checks involve providing fingerprints to the FBI and allowing the National Mortgage Licensing System and Registry (NMLSR) to check your credit report. You must allow the NMLSR to check your credit report because you must prove that you are financially responsible in order to earn the trust of your clients and your community. The last purpose of the background check is to allow the NMLSR to find information on your criminal history. You cannot have had any felonies in the past seven years, especially any felony including dishonesty, fraud, violation of trust, or money laundering on your criminal record.

Lastly, you must also use the NMLSR to register and uphold your own mortgage loan originator record. This record will act as your license in each state that you want to perform loan origination actions. Throughout your career as a mortgage loan originator, you must uphold your licensure through the NMLSR.


Educational Requirements
The courses you complete for your pre-licensing or continuing education requirements must be accredited by the NMLSR. However, the NMLSR cannot actually offer or create mortgage loan originator licensing courses because it must remain as an independent ethics regulatory entity.

As part of the SAFE Act, each licensee must complete at least 20 hours of pre-licensing education that is accredited by the NMLSR These 20 hours of education need to contain 3 hours covering federal laws and regulations, 3 hours concerning ethics (including fraud, consumer safeguards, and fair lending), and 2 hours regarding non-traditional mortgage lending.

Before attaining your mortgage loan originator license, you must also pass the national mortgage licensing exam generated by the NMLSR and administered by an accredited examination provider. This national accredited exam will test you on your understanding and application of ethics, federal laws and regulation, state laws and regulation, and certain state and federal laws and regulations concerning fraud, consumer safeguards, fair lending, and nontraditional mortgages.

In order to pass the exam successfully, you must answer at least 75% of the questions correctly. If you fail the test, you can retake it no less than 30 days after the first test. If you fail the test three times consecutively, you must wait no less than six months before taking it again. Furthermore, if you are a mortgage loan originator and you have not maintained your license for five or more years, you have to retake the SAFE Mortgage Loan Originator Test. In addition to successful completion of the exam, every mortgage loan originator licensee must give the NMLSR necessary reports of circumstance.

Once you have passed the national mortgage licensing exam and you have begun your career, you have to take the necessary steps to renew your license. You must 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 of nontraditional mortgage lending. Like pre-licensing education courses, the continuing education courses you take while you have your mortgage loan originator license must be approved by the NMLSR. In addition, it is important for you to keep in mind that your continuing education credits only count for the year in which you complete the continuing education class. Also, you cannot take the same continuing education class in the same year or the years following. Similar to the pre-licensing education standards, the NMLSR can only approve the continuing education courses, not offer them.