Q: What are the SAFE Act Training requirements for a bank or credit union?

A: If you are a federally insured bank, thrift or credit union, then your employees, who are considered mortgage loan originators (MLOs) under the SAFE Act, must only register with the NMLS (mortgage.nationwidelicensingsystem.org) and do not have to be licensed. As such, they do not have to take the SAFE Act mandated 20 hours of pre-licensing (PE) education and pass the National and State MLO Test.

While you as a federally insured bank, thrift or credit union are exempt from the SAFE Act MLO licensing requirements, you will be at a competitive disadvantage soon if you do not, as a best practice, get your MLOs trained and licensed. Consumers will not want to work with a MLO who is not properly trained and licensed.

That is why a federally insured depository institution should, as a best practice, require its MLOs to take the 20 hours SAFE Act mandated training and obtain licensing.

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Q: What are the requirements for a mortgage company or mortgage broker?

A: If you are a state licensed mortgage company or mortgage broker or a non-federally insured depository institution (e.g. a state insured credit union or a mortgage company subsidiary of a holding company), then your employees, who are considered mortgage loan originators (MLOs) under the SAFE Act, must not only register with the NMLS (mortgage.nationwidelicensingsystem.org) but also must be licensed. As such, they will have to take the SAFE Act mandated 20 hours of pre-licensing (PE) education and pass the National and State MLO Tests.

You must be compliant with the SAFE Act by July 30, 2010 or earlier, depending on your state’s requirements!

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Q: What are the SAFE Act PE training and education requirements?

A: Each MLO must take pre-licensing education (PE) from a NMLS approved SAFE Act Training Provider. The course must cover minimally the following:

1. Three hours of federal law and regulations
2. Three hours of ethics, including fraud, consumer protection, and fair lending issues
3. Two hours of training related to lending standards for the nontraditional mortgage product marketplace

All of the states require the SAFE Act mandated 20 hours of PE, except for the following four (4) states which require more:

• IN – 24 hours
• NC – 24 hours
• OH – 24 hours
• UT – 60 hours

Each MLO must then pass a National MLO Test with 75% score or higher. The MLO test involves 100 multiple choice questions and is 150 minutes (two and a half hours) in duration.

Also, each MLO must pass a State MLO Test with 75% score or higher. The State MLO Test involves 45 to 65 multiple choice questions and is 90 minutes (one and a half hours) in duration.

Depending on the state, the MLO may have to take additional state specific PE education. The following fifteen (15) states require state specific education hours:

• AZ – 4 hours
• DC – 3 hours
• ID – 2 hours
• IN – 2 hours
• MS – 4 hours
• NJ – 4 hours
• NM – 3 hours
• NY – 3 hours
• NC – 4 hours
• OH – 4 hours
• PA – 3 hours
• RI – 3 hours
• UT – 10 hours
• WA – 2 hours
• WV – 2 hours

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Q: Do all MLOs have to take the 20 hours SAFE Act PE training and education?

A: Generally all MLOs must take the 20 hours SAFE Act PE education. However, certain states will exempt previously licensed individuals from having to take the 20 hours PE if they have satisfied previous educational requirements and they file for such certification with the NMLS.

Regardless of whether the 20 hours PE is required or not, all MLOs must take and pass the National and State MLO Tests!

For example, in California so long as a DRE licensed MLO has satisfied previous educational requirements and they file for such certification with the NMLS, they will not have to take the 20 hours PE. However, each DRE licensed MLO must still take and pass the National and State MLO Tests!

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Q: What are the SAFE Act CE training and education requirements?

A: Each MLO must also take continuing education (CE) from a NMLS approved SAFE Act Training Provider involving at least eight (8) hours annually. The following nine (9) states require more hours of CE than the SAFE Act mandated minimum:

• HI – 20 hours
• KY – 12 hours
• LA – 10 hours
• MS – 12 hours
• MT – 12 hours
• NJ – 12 hours
• NY – 11 hours
• OR – 10 hours
• WA – 9 hours

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Q: Is Compliance Coach a NMLS approved SAFE Act education provider and what does it offer for what price?

A: Compliance Coach is a NMLS approved course provider, NMLS Provider ID #: 1400137. Compliance Coach provides the 20 hours PE education via its NMLS approved courses. It delivers the PE education by providing live instructor led classroom training at physical classrooms. An MLO can take the 20 hour SAFE Act Course by attending a physical classroom. Compliance Coach can also provide the 20 hours of PE education at a client’s location.

Compliance Coach also offers an Online SAFE Act Test Prep Course. While the Online SAFE Act Test Prep Course is not required to be completed by NMLS, nor is it approved by NMLS, it is highly recommended that you take it to ensure you will be fully prepared to take and pass the MLO Test!

Take the Course at your convenience online from your office or home, anytime from anywhere! The Course includes instructor video and is designed to provide you with a crash course on the National MLO Test. You will also receive a comprehensive Student Guide!

The course includes a series of practice questions and an online final practice Test that simulates the MLO Test, so that you are fully prepared to take and pass the National MLO Test!

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Q: Why should I select Compliance Coach for SAFE Act training and education?

A: Here are top 3 reasons why you need to select Compliance Coach:

1. Compliance Coach is the nation’s leading provider of training and education to the financial services sector. It serves 7 of the top 10 banks, 5 of the top 10 mortgage companies and over 1,500 financial services companies throughout the U.S. The nation’s premier financial services companies trust Compliance Coach to train their employees!
2. Compliance Coach’s training solutions are the best! That is why the regulators use Compliance Coach to provide training and education to examiners. For example, the FDIC, OCC & the Federal Reserve use Compliance Coach to train examiners.
3. Compliance Coach is not only a NMLS approved SAFE Act course provider and not only are its courses approved by the NMLS, Compliance Coach’s SAFE Act courses are the most effective! The courses are taught not only by the nation’s leading experts but also designed with one goal in mind: enable the student to pass the SAFE Act MLO Tests!

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