SAFE Mortgage Licensing Act was created to "encourage" a nationwide licensing and registry system. In the next few years, individual states will:
- Establish a minimum net worth for recovery fund requirements.
- Require originators to register with the National Registry and obtain a unique identifier number. This will help regulators track individuals and prevent originators who receive complaints in one state from starting a new origination practice in another state.
- Develop a state license program.
- Require pre-licensure education.
- Require eight hours of continuing education every year.
Karl, I think these steps should have been takin a long time ago. Mortgage originators should have similar requirements as real estate salespeople. Its about time!
I work in a Bank and we do have certain requirements that must be met yearly. When was the last time did anyone take a Fair Lending Act test? I know that is small stuff, but we have continuing education in all aspects of mortgages. With the ever changing rules, I feel like i never stop training.
Banks vs Brokers...I see the difference now.
Hi Nancy,
I see you've stopped by again, thank you. It's great that you are held accountable for meeting yearly requirements. Unfortunately, that may be an exception, not the norm. As a mortgage banker that is licensed in multiple states, I have experienced that there is much inconsistency right now in what, if anything, someone must do to be able to originate mortgages across the country. Some states such as New Jersey, Maryland and Florida, to name a few, do have specific requirements such as continuing education and testing. However, even these requirements vary from state to state. This much needed consistent standard that is part of HR 3221 will help to ensure that only those who should be in our business are in our business.