To the Students from the March 11-12 Pre-Licensing class at Rockwell Bellevue

Hi Everyone,

Here’s the follow up Q&A from our time together:

There was a request for more definitions and acronyms.  I like this page for definitions. And this link for basic mortgage acronyms.

I promised the scathing expose from 60 Minutes segment on the Fair Credit Reporting Act.  Makes me not so proud of the Credit Reporting Industry.

There was a request for a link to see what the 2014 Combined TIL/GFE disclosure form will look like next January

There are a lot of websites that refer to the Good Faith Estimate’s “Shopping Chart” as the “Shopping CART.” However HUD is still referring to it as the Shopping Chart.  Hopefully your test question won’t have both of those as possible answers. If so, I’d go with what HUD is calling it: a CHART.

Here is our federal regulator warning mortgage companies that are currently advertising in a deceptive way. I’m sure Double Secret Probation is next.

There was a request for more information on the FTC’s ruling on predatory loan mod scammers, which was the MARS rule. Here you go.

Slide decks for FHA loans and also the full 2-day class can be found on Slideshare.

Thanks for coming to class! What a fun group we had!! Keep studying 🙂



New SAFE MLO Test with Uniform State Component Plus More LO Pre-Education to Start April 1

Washington State has adopted the new uniform SAFE loan originator licensing exam and our state will begin delivering this new exam April 1, 2013.  Read more here.

This means loan originator candidates will take just one exam instead of a federal exam and then another Wa State specific exam.

In moving to the Uniform State Exam, Washington State Dept of Financial Institution has adopted new rules to increase the number of pre-licensing hours of education for new loan originators.

The way it is today:
20 Hours of Pre-Licensing Education (to prepare you for the National Exam)
2 of which are Wa State Law (to prepare you for the Wa State Exam)
some course providers offer the 20 hour class plus a separate 2 hour class on Wa Law.

The way it will be April 1, 2013 for Wa State LO candidates:
22 hours of Pre-Licensing Education (to prepare you for the National, Uniform State Exam)
4 of those hours on Wa State Law
some course providers will offer the 20 hour class plus a separate 4 hour class on Wa Law.

How I will do it:
I have a stand alone 20 Hour Pre-Licensing class which is approved for all 50 states.
I have a stand alone 2 Hour Pre-Licensing Wa Law class.
I will write a separate 4 hour course on Wa State Law for new LO students who will be able to take this course as of April 1st to meet the new requirement.

The national exam will be tougher than it is today and we should always expect standards for licensing, pre-education, continuing education, and exams to continue to rise.

I sent detailed feedback to Wa DFI with my recommendations for even more classroom time needed for people who are brand new to the industry, and I also recommend less classroom time for people who currently work for a depository bank and just need to take the class and pass the test to make a switch to a non-bank lender or mortgage broker.  But I don’t get to make the rules.

At the present time I teach a 2 day class. In 2010 I taught the pre-licensing class as a 3-day class and had many, many requests to squeeze it all into 2 days.  Two, 10-hour days and soon, Two, 11-hour days is just plain nuts for a brand new person yet most new people do not want to take 3 days off from their existing job/life to take the course.  Arguably expenses for a trainer are higher with a 3 day course. Think room rental fees and lost opportunities to make money elsewhere on that third day.  So I will keep the class as a 2-day class for now but it is definitely a LOT of info to cover in 2 days.

Recommended reading:

SAFE 20-Hour Pre-Licensing and Exam Prep

Why some loan originators are not passing the national exam

FAQ about the pre-licensing class