Loan Originator Licensee Requirements – Federal SAFE ACT Requirements

If you are a NEW Loan Officer

1. Complete a 20 hour course approved by the NMLS and conducted by an approved NMLS company.
2. Pass the Federal exam
3. Pass a separate State of Michigan exam
4. Complete a fingerprinted background check according to NMLS requirements.
5. Complete the application process within NMLS. Go to the NMLS website for complete details at www.mortgage.nationwidelicensingsystem.org
6. The NMLS will run a credit report and credit analysis will be a part of the approval process
7. Submit a bond in the minimum required amount. (From 10/7 OFIR letter, a $10,000 bond is required for a new loan originator applicant and for originator licensee)

Requirements for Loan Originators at Depository Institutions

Loan originators at depositories must be registered with NMLS but are not required to be licensed.
Registration requirements are:

1. Complete a fingerprinted background check according to OFIR requirements.
2. Complete the registration process within NMLS. Go to the NMLS website for complete details at www.stateregulatoryregistry.org
3. The NMLS will run a credit report and credit analysis will be a part of the registration process. Individual states and regulators are considering whether additional requirements will apply to originators at depository institutions.

Definition of Originator

“To negotiate, arrange, or offer to negotiate or arrange a mortgage loan between a mortgage lender and 1 or more individuals”, or “to place, assist in placing, or find a mortgage loan for 1 or more individuals”.
 
This definition is very broad and includes anyone involved in providing more than just basic information about mortgage lending. The definition is not meant to include processors. However, in Michigan a person who is a contract processor or underwriter must be licensed under the law.
 

Retake Policy

The Retake Policy is designed for individuals who had difficulty in absorbing all the information in the class and need to attend again, in a timely manner, in order to understand the information that was presented. It is not designed for “Refreshers”. Individuals can retake the same class at no additional charge if the request is made within ninety days. Registrant must retake the class within six months from the call (or the next time the class is offered). Registration (or the “seat) is not guaranteed unless the student wishes to pay again and is subject to rescheduling if the class sells out. The student will need to wait until the next available date. No materials are to be given. If a retake request is made after ninety days from class date, attendee must pay ½ of cost of class to retake it and will then receive the current course materials.