SAFE Act Course
The Secure and Fair Enforcement for Mortgage Licensing Act  
The Safe Act was passed into law in 2008 in response to the sub-prime mortgage crisis.  As a result, this law now requires anyone seeking to originate mortgage loans to obtain a state license as a mortgage loan originator (MLO), unless working for a deposit taking institution.  In order to become a licensee you must take a 20 Hour Pre Licensing Course, pass an exam and meet certain criteria under the required background check. The SAFE ACT prohibits anyone from engaging in the business of residential mortgage loan origination without registering and obtaining any required licensing.
Which Mortgage Jobs Require A License?
Mortgage Loan Originator working for a mortgage broker
Mortgage Loan Originator working for a mortgage lender
Mortgage Loan Modifier
Contract Mortgage Processor or Underwriter
I Am New To The Industry, How Do I Get A Mortgage License As An MLO?
Becoming a licensed MLO can be a cumbersome process, but it doesn't have to be.  Fortunately, the Nationwide Mortgage Licensing System (NMLS) will provide you with all of the necessary requirements relating to obtaining your license.  It starts with obtaining an NMLS ID Number which you may access here: https://fedregistry.nationwidelicensingsystem.org/MLOs/Pages/GettingStartedMLO.aspx

The next step is taking the 20 hour course, passing the exam and applying for the license through a sponsored employer. 
Is The NMLS Mortgage Loan Originator Test Difficult?
The test is extremely diverse and covers the full spectrum of the mortgage industry.  This is why choosing the right provider is so important.  A word of caution: There are many discount courses available through a quick internet search but as the old adage goes, you get what you pay for.  Many providers show discounted pricing and then sell their test prep materials which are needed to prepare for the exam as an add on additional fee.  This usually ends up costing more than using a Nationwide provider like My Mortgage Trainer, Inc. who will give you all of the study material as well as a handy trainers study guide all for one price.

To see the current NMLS Mortgage Loan Originator test outline, click here
What Course Options Exist To Meet The Pre License Education Requirement?
First, there are over 100 approved providers on the NMLS approved list but less than a handful that can actually serve you Nationwide.  There are 3 different delivery methods available for taking the course, however of the three, live classroom instruction is likely going to be tough to find.  In fact of the 3 methods, the 2 most popular ways to take the pre license course are:
1.) Live Webinar
Webinar
The webinar is the best way to learn the industry if your current schedule allows.  The webinar is done over 3 straight days with a live instructor from the comfort of your own home or office.  A webcam is not required. Click the video below to get an idea of how the webinar functions:
Online Instructor Led
The Online Instructor Led Option is delivered over a 7 day window and allows for some more flexibility for those who cannot spend 3 straight days in a webinar.  To find out more about this delivery method, please view the video below:
Is There Temporary Authority To Operate As A Mortgage Originator If I Have Previous Experience? 
Yes, however, this will not go into effect until November 24, 2019.  On this date and after,  the SAFE Act was amended to add Transitional Authority to operate as a mortgage loan originator if you are leaving a deposit taking institution that did not require licensing to a state licensed company or if you are seeking license in another state while you are completing the necessary educational or testing requirements.

In order to qualify, MLO's must have worked at least 1 year prior to application or in the state specific area must have been licensed for at least 30 days prior to application. 
How Long Can An MLO Operate Under Temporary Authority? 
Temporary authority starts upon submitting an application with all of the required background check information and ends when one of the following happens:
1.) Application withdrawn by MLO
2.) State denies
3.) State Grants approval
4.)120 days after application is submitted if it is incomplete 

Click here to read the FAQ regarding transitional licensing as an MLO.
What is A Mortgage Loan Originator? 
For more information on what a mortgage loan originator is click here.
Have additional questions? Call 317-566-0425 
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