SAFE Act, the NMLS, and the New Florida Licensing
Requirements
Frequently Asked Questions and Answers (FAQs)
When does the new Mortgage Loan Originator (MLO)
license become effective?
I am currently a licensed Florida Mortgage Broker and I heard that I need to requalify
for a license, is that true?
Yes. Per the SAFE Act of 2008, anyone whose job description includes mortgage loan
originating must obtain a Mortgage Loan Originator (MLO) license issued by the
state of Florida and must be registered through the Nationwide Mortgage
Licensing Syste (NMLS).
I am currently a loan processor/loan underwriter. Do I need a MLO license?
Yes.
Both loan processors and loan underwriters need to be licensed pursuant to Chapter
494 F.S.
When will my current Mortgage Broker license expire?
December 31, 2010 Although the Office of Financial Regulation (OFR) web site indicates an expiration date of August 31, 2011, the license will expire on December 31, 2010. As long as an application has been filed, an extension to the expiration date will be given to those
applicants and they can continue to work until their application is approved or denied. Expired and inactive licensees will not be granted an extension.
What are the changes in the application process?
• The OFR will stop accepting applications for old license
types on July 8, 2010.
• Starting October 1, 2010, all new applications must be submitted through the
NMLS.
• Current licensees must reapply through NMLS by December 31, 2010. (November 30
to be “education or state exam certified” – explained below)
• Beginning in 2011 licenses must be renewed annually through NMLS by December
31.
• Criminal background checks and credit reports will be checked annually.
When can I apply for the MLO license
On or after October 1, 2010
***note the deadline of November 30, 2010 if you want to be “education” or
“state
exam” certified.
To see a sample of the application, Form MU4, that you will be able to complete
on or after October 1, 2010,
Click Here
When will my current MBB, CL, ML, or MLS license expire?
All business licenses will expire on December
31, 2010 unless the licensee applies for a Mortgage Broker or Mortgage Lender
license through the NMLS between October 1, 2010 and December 31, 2010. The
expiration date of the applicant’s existing business license will be extended
until the application is either approved or denied.
Do you know what the new licensing fees will be on October 1, 2010?
• All Licenses
Federal and state criminal background check of control persons (total cost
unknown at
this time)
Credit report for control persons (cost unknown at this time)
• Loan Originator
$195 application fee
$20 guaranty fund fee
$30 initial and $30 annual NMLS filing fees
• Mortgage Broker
$425 application fee
$100 guaranty fund fee
$100 initial and $100 annual NMLS filing fees
• Mortgage Lender
$500 application fee
$100 guaranty fund fee
$100 initial and $100 annual NMLS filing fees
Fees in italics are set by Florida Statute.
I have been licensed for 25 years and I heard I need to take a 20
hour pre
licensing class. Is that true?
No
The state of Florida will certify your education. However, in order to be
“education
certified”, the applicant must be actively licensed as a Florida Mortgage Broker
as of September 30, 2010 AND must apply for the new Mortgage Loan Originator (MLO)
license between October 1, 2010 – November 30, 2010.
When a state certifies that an MLO has satisfied the state test and/or PE
requirement,
NMLS generates a certification invoice and sends an email to the MLO (and their
company) telling them to pay the certification fees. The MLO must log into NMLS
and
pay the certification invoice in order to get credit for the test or education.
MLOs can
use the “Paying a Certification Invoice Quick Guide” for step-by-step
instructions. The
Test Certification Fee is $5.00 per test and the Education Certification Fee is
$15.00. To print a copy of the MLO Certification Payment Invoice,
click here.
For more information, and to see the NMLS Certification Page
Click Here.
What if I don’t apply by November 30, 2010?
Then you cannot be “education certified” and you must take the 20 hour pre
licensing
course (20 hours PE)
I was licensed as a Florida Mortgage Broker on or after January 1,
2004. I heard that I don’t need any pre license education nor do I have to take the “state component” exam. Is that true?
Yes
However, in order to be “state MLO test certified”, the applicant must have
passed the
Florida Mortgage Broker examination on or after January 1, 2004 AND be actively
licensed as a Florida Mortgage Broker as of September 30, 2010 AND apply for the
MLO license between October 1, 2010 – November 30, 2010.
What if I don’t apply by November 30, 2010?
Then you cannot be “state test certified” and you must take the “state
component” of the
exam.
How many exams do I need to take, how many & what type of questions,
and
what do I need to score to pass?
2 exams - a national exam and a state exam (unless “state exam certified”); the
national
exam is 100 questions with 10 statistical questions that are not graded and you
must
score at least 75%; the state exam is between 45-55 questions of which 5-10 are
statistical and are not graded and you must score at least 75%. Both exams are
multiple choice with 4 answer selections.
What happens if I fail the exam?
You must wait 30 days before you can retest. Every time you fail you must wait
another 30 days prior to retesting. You can fail 3 times before you must wait
180 days to retest
again.
When can I take the national exam?
Anytime.
You don’t need to wait until October 1, 2010.
Even though I am not required to take the 20 hour PE class, how can
I
successfully pass the national exam without a refresher class?
Please go to our website at
www.bertrodgers.com and select the “Mortgage
Professionals Education” tab and then you’ll see the link to register and pay
for our prep
course or the 20 hour PE course.
I did not renew my Florida Mortgage Broker license last August and
now my
license is in an “inactive” status. Should I just apply for the MLO license in
October?
No.
Reactivate your license NOW. That means you need to have completed 14 hours of
professional continuing education (for the years 2008 & 2009), pay the late fee
and the
renewal fee NOW. Then, apply for the MLO license between October 1, 2010 and
November 30, 2010 (exempting you from the 20 hour course and possibly state exam
if
licensed after 1/1/2004) and then you can continue to work legally until the
request for
licensure is approved or denied. If you need the 14 hour course, then please
visit our
website at www.bertrodgers.com and select the “Mortgage Professionals Education”
tab
and then select the link to order the 14 hour correspondence course. Otherwise,
if you
apply for the MLO license in October without re-activating your current MB
license, you
cannot practice until your application is approved and the OFR is saying that
could take
up to 6 months.
I am currently unlicensed. Should I wait to apply for a MLO license
or should I
apply for a Florida Mortgage Broker license NOW?
It depends if you want to originate loans on or after October 1, 2010. A MLO
license will
be required for any mortgage loan origination activities. The only exemption is
for an
individual who is actively licensed as a MB on September 30, 2010 who applies
between October 1 and December 31, 2010 (applying by November 30th allows you to
be “education and state exam certified”). You could continue to work without the
new
MLO license while your application is being processed. Therefore, if you wait
until
October 1, then you cannot work until your MLO application is approved. In
addition,
you must apply for the MB license by July 8, 2010. That is the date the OFR will
stop
accepting MB applications. Starting October 1, 2010, the penalty if a broker, processor,
underwriter or originator operates without a license is $1,000 per day not to
exceed
$25,000 cumulatively.
How do I obtain a Mortgage Loan Originator (MLO) license?
You can begin to apply on or after October 1, 2010 through the NMLS website;
however, you can create your account NOW and obtain your NMLS Unique
Identification Number by
Clicking Here.
Why do I need a NMLS Unique Identification Number?
Creating an individual account establishes a permanent record in the NMLS. This
number will stay with you throughout your career. You will use it for test
enrollment;
criminal background authorization; credit report authorization; and course
enrollment so
that a school can post your hours. For information on how to create this
account,
Click Here.
What is required to obtain the MLO license?
First you must create an account on the NMLS website (see link above); take a 20
hour
PE course (unless “education certified); you must take and pass both a national
and
state exam (unless “state exam certified”); submit fingerprints for a criminal
background
check; and provide authorization to the NMLS to obtain your credit report.
The license will become an annual license with the first expiration date of
December 31,
2011. You will be required to complete 8 hours of continuing education in 2011
and 8
hours every year thereafter.
I have bad credit. Will my application be denied?
You must grant the licensing authority permission to pull your credit.
Bankruptcies,
foreclosures, and outstanding bills could cost the applicant their license. Some
red-flag
criteria they are using include the following:
• Personal bankruptcy within the previous year.
• Business bankruptcy within the previous year, if the mortgage applicant was,
for instance, an officer with the company.
• Outstanding tax lien or other governmental lien.
• Outstanding judgment based upon grounds of fraud, embezzlement, misrepresentation or deceit.
• Open collection account or an account that is actively assigned to a
collection agency.
• Any account that has been "charged off" within the previous five years and
remains unpaid.
• Foreclosure on personally owned property within the past five years.
I can pass the credit test but what about my criminal background?
Candidates for a license will be permanently barred from
doing mortgage business in
this state if they have been found guilty of felonies that involve fraud or
dishonesty; their
mortgage career is on hold for 7 to 15 years for other felonies and they are
barred for 5
years for misdemeanor convictions involving fraud, such as altering public
documents.
According to the OFR - Current Class A Crimes Include the Following List of Felonies:
(Lifetime disqualification for an individual mortgage broker/loan originator
license)
• Any type of fraud, including Fraud, Postal fraud, Wire
fraud, Securities fraud, Welfare fraud, Defrauding the government, Credit card fraud, Defrauding an
Innkeeper and Passing worthless check(s) with intent to defraud
• Perjury
• Armed robbery
• Robbery
• Extortion
• Bribery
• Embezzlement
• Grand theft
• Larceny
• Burglary
• Breaking and entering
• Identity theft
• Any type of forgery or uttering a forged instrument
• Misuse of public office
• Racketeering
• Buying, receiving, concealing, possessing or otherwise dealing in stolen
property
• Treason against the United States, or a state, district or territory thereof
• Altering public documents
• Witness tampering
• Tax evasion
• Impersonating or attempting to impersonate a law enforcement officer
• Money laundering
