|
Types of Licenses issued
A mortgage loan originator is an individual who, for compensation or gain, or in the expectation of compensation or gain, takes a residential mortgage loan application or offers or negotiates terms of a residential mortgage loan.
A residential mortgage loan means any loan primarily for personal, family or household use that is secured by a mortgage, deed of trust, or other equivalent consensual security interest on a dwelling which contains 1 to 4 residential units. Dwelling includes an individual condominium unit, cooperative unit, mobile home and trailer if it is used as a residence.
Who is required to have this license?
Any person who provides services as a mortgage loan originator in California must apply for and receive a mortgage loan originator license by July 31, 2010. The license must be renewed annually by December 31.
Who does not need this license?
Mortgage loan originator does not include:
- An individual who performs purely administrative or clerical tasks on behalf of a person meeting the definition of a mortgage loan originator. The term “administrative or clerical tasks” means the receipt, collection, and distribution of information common for the processing or underwriting of a loan in the mortgage industry and communication with a consumer to obtain information necessary for the processing or underwriting of a residential mortgage loan, to the extent that the communication does not include offering or negotiating loan rates or terms, or counseling consumers about residential mortgage loan rates or terms.
- An individual who solely renegotiates terms for existing mortgage loans held or serviced by his or her employer and who does not otherwise act as a mortgage loan originator, unless the United States Department of Housing and Urban Development or a court of competent jurisdiction determines that the SAFE Act requires that employee to be licensed as a mortgage loan originator under state laws implementing the SAFE Act.
- An individual that is solely involved in extensions of credit relating to timeshare plans.
- An individual licensed as a mortgage loan originator pursuant to the California Real Estate Law and the SAFE Act.
- A registered mortgage loan originator who is an employee of a depository institution, a subsidiary that is owned and controlled by a depository institution and regulated by a federal banking agency, or an institution regulated by the Farm Credit Administration.
Pre-requisites for license applications:
- All applicants must apply for a license through the NMLS by filing a Form MU4 and receiving a sponsorship by a company holding a valid unique identifier with NMLS and which is licensed by the California Department of Corporations.
- Authorization to provide criminal records information through the FBI criminal records to NMLS.
- Authorization to obtain an independent credit report obtained by NMLS from a consumer credit reporting agency.
- An applicant must demonstrate financial responsibility, character and general fitness such as to command the confidence of the community and to warrant a determination that the mortgage loan originator will operate honestly, fairly and efficiently.
- 20 hours of pre-licensing education including 3 hours of federal law and regulations, 3 hours of ethics and 2 hours of training related to nontraditional mortgage products. Pre-license education must be courses which have been approved by NMLS.
- Passing of written tests including both federal and state components. The written tests must be taken through test providers approved by NMLS.
- Coverage by a surety bond provided by the mortgage loan originator’s employer.
- Background checks including FBI fingerprint checks and civil and administrative records checks.
The following conditions would preclude an applicant from obtaining a license as a mortgage loan originator or from annually renewing a license:
- An applicant has had a mortgage loan originator license revoked in any governmental jurisdiction unless there was a subsequent formal vacation of the revocation.
- The applicant has been convicted of, or pled guilty or nolo contendere to a felony in a domestic, foreign or military court during the 7 year period preceding the date of the application; or at any time preceding the date of application if such felony involved an act of fraud, dishonesty or a breach of trust or money laundering.
- A showing that the individual is not financially responsible by showing a disregard in the management of his or her own financial condition. This may include: current outstanding judgments, except for medical expenses, current outstanding tax liens or other government liens and filings, foreclosures within the past 3 years or a pattern of seriously delinquent accounts within the past 3 years.
For more information about the actual course please visit Mortgage Education Course FAQ’s.
|
agentcampus.com offers these California mortgage education courses in conjunction with MortgageEducation.com. All the mortgage education courses are NMLS-approved and will satisfy all the required education hours for your state. Should you have any questions please feel free to contact MortgageEducation.com.
MortgageEducation.com
NMLS Provider No. 1400051
Address: 555 West 23rd Street, N10E New York, NY 10011
Customer Support:
(404) 496-4177
|
