Mortgage education providers are lining up courses to help originators meet upcoming state requirements under the Secure and Fair Enforcement for Mortgage Licensing Act of 2008. In other mortgage licensing activity, a huge net branch operation faced an order over unlicensed originators, while licensees in Florida and Pennsylvania face new requirements.
Allied Home Mortgage Capital Corp. and owners Jim and Kathy Hodge agreed to an Aug. 6 consent order with the Georgia Department of Banking and Finance. Cease-and-desist orders were rescinded as a result of the agreement. The huge net branch operation allegedly operated with unlicensed originators, and the order requires the Houston-based firm to comply with the Georgia Fair Lending Act, O.C.G.A. 7-6A-1 et seq.
Allied, which is required to contribute $1,000 to the State Regulatory Registry LLC, is also required to develop procedures to ensure state compliance. It needs to ensure employees are adequately supervised, implement background checks and maintain a journal of active licensees and loans it closes in the state.
New Hampshire Gov. John Lynch recently signed HB 610 into law. Among other things, the new law incorporates provisions of the S.A.F.E. act — including greater education, testing and criminal background checks.
Also joining the Nationwide Mortgage Licensing System & Registry was Illinois.
AllRegs announced last month that 300-employee James B. Nutter & Co. successfully completed its 20-hour Mortgage Loan Originator S.A.F.E. Comprehensive Course. AllRegs, a MortgageDaily.com advertiser, said it was approved by the NMLS on Aug. 17. The 20-hour course fulfills the entire 20-hour pre-licensing requirement.
Eagan, Minn.-based AllRegs said its course includes instructor presentation and two practice exams and noted that state-licensed mortgage loan originators are required to have the 20 hours of pre-licensing education completed by Jan. 1, 2011, unless their states require it sooner.
ProSchools said in July that it received NMLS approval.
Another firm to recently announce NMLS approval was TrainingPro. Both its 20-hour and 8-hour pre-licensing courses were approved. The 8-hour version includes three hours on federal mortgage laws, three hours of ethics and two hours of standards for nontraditional mortgage lending.
Also jumping on the S.A.F.E. education bandwagon was the Mortgage Bankers Association’s CampusMBA, which announced in August its inclusion on the list of approved S.A.F.E. act education providers. MBA noted the act is part of the Housing and Economic Recovery Act of 2008.
In a recent newsletter, Patton Boggs LLP said any mortgage loan originator that intends to conduct Florida origination business on behalf of a Florida mortgage lender or correspondent mortgage lender licensee will be required to hold a mortgage broker license as of Jan. 1, 2010.
The Washington, D.C.-based law firm also noted in its newsletter that Pennsylvania no longer requires that mortgage lenders, correspondent mortgage lenders or mortgage broker licensees maintain an office within the state.
In Colorado, the Division of Real Estate recently inactivated 4,560 mortgage broker licenses, with 4,252 licensed mortgage brokers remaining.
Patton Boggs Partner John D. Socknat told MortgageDaily.com that the actions were not entirely a surprise given the downturn in the mortgage market. In addition, the required background check, surety bond requirement and educational requirements deterred some licensees.
“The Colorado Division of Real Estate likely will point to this as a success – the goal of these requirements is to ensure that loan officers have the appropriate experience, background and education to properly assist consumers with the mortgage loan process,” Socknat stated. “The fact that so many individuals failed to fulfill the requirements could be viewed as weeding out those that were either unwilling or unable to satisfy Colorado’s basic requirements.”
Socknat said similar actions are likely to occur in other states as a result of the S.A.F.E. act.
Allied Home Mortgage Capital Corporation Petitioner vs. Georgia Department of Banking and Finance Respondent; Jim Hodge Petitioner vs. Georgia Department of Banking and Finance Respondent; Kathy Hodge Petitioner vs. Georgia Department of Banking and Finance Respondent.
Docket no. DBF-MBL-09-014, Aug. 6, 2009 (Before the Department of Banking and Finance, State of Georgia).
