USC
NMLS
Nationwide Mortgage Licensing system and registry
Responsibilities: Serves as a communication Hub and database for mortgage industry.
Streams Communication between regulators in the mortgage industry, implemented under the SAFE ACT
NMLS
Department of Justice
Responsibilities: Fair housing lase and other federal laws.
Serves as Prosecutor in cases where the federal government sues a mortgage loan originator
What does the FTC and FCC do?
Monitors business done at national level across states, such as mortgage transaction Pennsylvania while MLO is working out of Michigan.
FCC: Enforce telecommunications laws
Requirements to maintain MLO license ?
8 hours annual CE training
3 Hours Fed Law
2 Hours Ethics
2 Non traditional
1 hour undefined or elective
Complete any required annual state specific education
Maintain goof financial and personal character
Institution submit MCR quarterly and annually to NMLS
Maintain surety bond, state fund, and net worth requirements
CFPB
CONSUMER FINANCIAL PROTECTION BUREAU
Responsibilities: For providing a single federal regulator for consumer financial protections
Regulations B,C,G,H,N,P,V,X AND Z. THE HPA and they also regulate the NMLS
CFPB
FINCEN & Secretary of the Treasury
Financial Crimes Enforcement Network & Secretary of the Treasury
Responsibilities: Enforce financial crime laws such as USA Patriot act and anti money laundering laws.
FTC & FCC Who and/or what laws the oversee
BOTH: Do Not Call Laws
FTC: regulates interstate state calls
FCC: Regulates both interstate and intrastate calls
FTC: Safeguards Rule, Red Flags Rule, Disposal Rule
How to lose/ be denied for MLO License ?
Individual:
Felony in the last 7 years
A felony involving fraud will never be able to be license
Lack of financial responsibility and good character
Failure to complete pre licensing education
Fail SAFE exam
Failure to complete annual CE training
Institution: Failure to meet surety bond, state fund, or net worth requirements
Failure to submit MCRS
Conference of State Bank Supervisors & American Association of Residential Mortgage Regulators
Both the CSBS and AARMR consolidate opinion at the state level and provide guidance and communication for their members at the national level.
The both created the NMLS ?
CSBS & AARMR
Regulator and enforce the financial crime laws?
Patriot ACT and BSA/ AML
SEC
Securities and Exchange Commission
Enforce Rules for the secondary market
Oversees the secondary market, and the transaction involving mortgage backed securities (MBS)
Who needs a license under REG H
MLO at non depository institutions
Independent contractor that works as MLO, processor and underwriters
Mortgage brokers and brokerages
SRR
State Regulatory Registry
SRR responsibilities ?
To oversee education and testing content, as well as operate the NMLS as a database of information about MLOS
FTC & FCC
Federal Trade commission and Federal Communications Commission
Requirements to Register:
Fill out MU Form
MU1: Institution
MU2:Responsible Party
MU3: Branch
MU4: Individual (submit 10 years of employment and residential history )
Pay an NMLS registration fee
Authorize a credit report check
Submit fingerprints for the FBI background check
Who does not need to be licensed under REG G ?
MLOS at depository institutions
Individual negotiating rates on terms for their own residence
person who performs only real estate brokerage activities
individual who extends credit to timeshare plans
individual who performs only administartive, clerical, or support duties(employee) under teh direction of MLO
Individual who is NMLS register and is an employed of a covered financial institution
An individual who simply forwards loan application, such as loan processor, or decides if borrower is qualified, such as underwriter
An individual who explains loan terminology or steps arranges the loan closing, such as a closing agent
volunteer
negotiates terms on behalf of immediate family member
A individual who offers or negotiates terms of residential mortgage loan secured bye a dwelling that served as the individual residence
Operates and manages the NMLS and works on behalf of the CSBS and AARMR to oversee education and testing content.
HUD
Department of Housing and Urban Development
Responsibilities: To create a strong, sustainable, inclusive communities and quality affordable homes for all/
Who oversees HUD?
Federal Housing administration, Fair housing act, sponsors the federal national mortgage association(Fannie Mae) and the federal loan mortgage corporation(Freddie Mac) and the Government National Mortgage Association( Ginnie Mae)
Requirements to get an MLO License
20 hours of approved pre licensing
3 Fed Law
3 Ethics
2 Non Traditional
12 Undefined or elective
Pass SAFE exam 75% or higher
Complete any state specific pre licensing education requirements
Meet Surety Bond, Net worth and state fund requirements
5 Categories of SAFE
MLO 27%
Fed Law 24%
GMK 20%
Ethics 18%
USC 11 %