Deadlines for Licensing, Testing, and Education Under the SAFE Act

Deadlines for WA State Mortgage Brokers and LOs. Other states may have different deadlines:

July 30, 2009
LOs licensed under a broker who take/took the (existing) LO test before this date don’t have to pass the new test with 75% until the end of 2010. You can also add up the continuing ed classes you’ve taken over the past few years to make sure that you hit 20 hours of CE prior to the end of 2010. Sweet!

July 31, 2009
New LOs working at a company licensed under the Mortgage Broker Practices Act OR the Consumer Loan Act must complete 20 hours of pre-licensing education by the end of Dec, 2009 and pass the new exam prior to becoming licensed.

Dec 31, 2009
Mortgage Broker LOs must complete 8 hours of continuing ed and renew through the NMLS system.
New MB LOs will have to take 20 hours of CE to renew if they were licensed after 7/31/09.
Consumer Loan Company LOs licensed after July 31, 2009 must complete 20 hours of pre-licensing in order to renew.

I see a potential problem for newly licensed LOs (licensed after 7/31/09) who put off their prelicensing education until December and then freak out trying to find 20 hours in a hurry.

I see a potential loophole and here it is:

July 1, 2010
This is the deadline for Consumer Loan Company LOs to be licensed, to pass the test, and to finish their 20 hours of pre-licensing. Given the nature of many salespeople to put things like this off until the last minute, why would a Consumer Loan Company LO get licensed in 2009 when he/she can procrastinate until mid 2010?

Links for more information:
NMLS
WA State DFI

3 thoughts on “Deadlines for Licensing, Testing, and Education Under the SAFE Act”

  1. DOES THE SAFE ACT AFFECT LOAN OFFICERS THAT WORK FOR AN AFFILIATION OF A SAVINGS AND LOAN WHICH CURRENTLY UNDER THE EXEMPTION FOR NO LICENSING IN 1322.02 REVISED CODE SECTION a IN THE STATE OF OHIO? I WAS TOLD THAT AS OF JANUARY 1, 2010 THE SAFE ACT OR UNDER THE HOUSE BILL THAT ALL LOAN OFFCERS WILL BE REQUIRED TO OBTAIN A LOAN OFFICERS LICENSE.

    THANKS,

    KELVIN

  2. Hi Kelvin,

    It depends on how your company is licensed. From the SAFE Act:

    “An employee of:
    a depository institution;
    a subsidiary that is:
    owned and controlled by a depository institution AND
    regulated by a federal banking agency OR
    An institution regulated by the Farm Credit Admin”

    Is your company a depository institution that is also regulated by a federal banking agency?

    A subsidiary owned and controlled by a depository institution that is also regulated by a federal banking agency?

    If yes then you are exempt from licensing (no test, no mandatory education) however, you are not exempt from registering with the NMLS plus fingerprints and a background check. All LOs will either be licensed or registered no matter where you work.

    If the answer to the above is no, then you will need to be licensed. For more details, contact the NMLS direct. They are great folks to work with!

  3. Thank you for your response. What does NMLS (the appreviations) direct and do I obtain the forms to register?

    Thanks,

    Kelvin

Comments are closed.