SAFE Act/ Uniform State Test (UST) Latest Update Graded A+

SAFE Act/ Uniform State Test (UST) Latest Update Graded A+ SAFE Act purpose is to create uniform regulation of mortgage loan originators in every state Secure and Fair Enforcement for Mortgage Licensing Act of 2008 SAFE Act Regulation H for state licensed Regulation G for Federal Depository Institutions Before the crash of 2007, there was very little regulation of... Loan Originators HERA was created... The Housing and Economic Recovery Act was created to regulate those who originate loans The SAFE act was created under... HERA and is Title V of the act The two organizations that came together to create the minimum licensing statues The CFBS (Conference of State Bank Supervisors) and the AARMR (American Association of Residential Mortgage Regulators) These standards are known as... MSL (minimum state legislation) NMLS is Nationwide Multistate Licensing System and Registry is the data base of all registered mortgage loan originators A State Licensed Loan Originator is licensed by the state and maintains a unique identifier through NMLS an independent contractor must also be licensed cant engage in LO activities as a processor or underwriter unless licensed If left unmaintained, the license will become invalid in 5 years Registered Loan Originator is... an employee of a depository institution registered with the NMLS and maintains a unique identifier a depository institution is federally regulated Licensing Exemptions A state is not required to license: processors or underwriters a loan originator who is an employee of a depository institution real estate broker anyone who offers/negotiates terms of a residential mortgage on behalf of an immediate family member anyone who offers/negotiates terms on behalf of their own residence employee of a bona fide nonprofit organization licensing qualifications background checks fingerprints credit report government agency records 20 hours of NMLS approved education -3 hours of federal laws/regulations -3 hours of ethics -2 hours of nontraditional mortgage products Testing must pass written test developed