June 1, 2009 Update: I just got off the phone with someone in the licensing department at DFI. They hope to have more information available soon for mortgage originator licensing. Some details are still being worked out. From what I could gather from my conversation this morning, the main advantage for licensing now vs. later is that you will have more time to complete the clock hours, take the exams and to be able to spread out the costs for said classes and exams. I sincerely apologize for misinterpreting DFI’s site on the requirements for LO licensing…I wish I could line out my title of this post!
In April, SHB 1621was signed by Governor Gregoire requiring loan originators employed by correspondent lenders/consumer loan companies to obtain a Washington Loan Originator License by July 1, 2010. The State passed SB6471 last summer which had “unintended consequences” causing some loan originators who were regulated by the Mortgage Brokers Practices Act (and therefore licensed) to become defined under the Consumer Loan Act–allowing those LO’s to be “unlicensed”. With the passage of the SAFE Act, the State is stepping up to National laws which include CLA loan originators.
So my fellow mortgage professionals who are employed at correspondent lenders, here is an opportunity for you: if you submit your application to become licensed by July 30, 2009; you’ll reduce your education requirements by 12 hours and pass one less exam.
All applicants (regardless of when you decide to sumbit your license) must complete Form MU4 via the Nationwide Mortgage Licensing System and Registry (NMLSR) and submit one fingerprint card, pay $155 licensing fee and…
LO Applications Submitted by July 30, 2009 (in addition the above):
- Pass the PearsonVue Loan Originator test
- Complete 8 hours of approved continuing education by December 31, 2009.
Or you can wait until after July 30, 2009 to submit your LO Application and in addition to the above requirements:
- Pass the State and National exams.
- Complete 20 hours of approved continuing education by December 31, 2009.
Do you really like to procrastinate? Opt to delay this process until January 1, 2010 and you still get to pass both exams and complete the 2o hours of CE prior to submitting your license prior to the July 1, 2010 deadline. (DFI ask that you submit license no later than April 1, 2010 to allow processing time).
Deb Bortner of DFI will be speaking about the SAFE Act and Washington State Loan Originator Licensing at two upcoming events:
- June 4, 2009 from 4:00 – 8:00pm at The Venue on South Union in Tacoma. $50 includes dinner and wine from The Three Chicks.
- June 19, 2009 from 12:30 – 5:00pm at Safeco Field – Ellis Pavilion in Seattle. $50 includes a ticket to the Mariner’s Game and lunch.
Both events include presentations on social media for mortgage professionals. I’ll be one of the speakers at Safeco Field along with David Gibbons from Zillow. 🙂 If you’re interested, you can get more info or register for either event with the Washington Association of Mortgage Professionals (membership to WAMP is not required).
As someone who’s gone through licensing, I can tell you it’s (an important) chore. Classes will fill up as the deadlines approach and I had the pleasure of being fingerprinted three times before I had a print that was acceptable. If you fail your exam three times (I wonder how often this happens); you’ll have to wait six months before you can try your luck at the exam again which means no loan originating for you until you have successfully passed your exams.
If you are originating mortgages in Washington State, I would not delay getting your Loan Originator License.