Michigan Mortgage Loan Originator (MLO) Licensees and Candidates: Frequently Asked Questions  

What are the Michigan Loan originator license requirements?
All Michigan Loan Originators must be do the following by July 31, 2010:

• Complete 20 hours of NMLS-approved education. The education must include a minimum of 3 hours of federal law and regulations, 3 hours of ethics, and 2 hours related to lending standards for nontraditional mortgage product marketplace. NOTE: Anyone that has taken the 24 hours of OFIR-approved prelicense education will not have to complete the 20 hours of NMLS-approved education.

• Pass a national background check and authorize a credit report through NMLS by July 31, 2010. The background check is available now, however, the ability to authorize a credit report through NMLS is not currently available. Once it is available this web page will be updated.

• Pass the SAFE Mortgage Loan Originator Test. The SAFE Mortgage Loan Originator test is two exams, a national exam and a state exam, which may be taken separately.

• Register with the Nationwide Mortgage Licensing Registry (NMLS).

What is the NMLS or NMLSR?
NMLS is the Nationwide Mortgage Licensing System and Registry. Each applicant is required to submit applicant information, including fingerprints, personal history and experience. This information is stored in a national database of mortgage originators, developed and maintained by the Conference of State Bank Supervisors.

What information will be in the NMLS database?
The database will contain licensing information, enforcement actions and background data for every state-licensed mortgage broker, loan originator and lender. Those individuals operating in states without licensing requirements will have the opportunity to submit information voluntarily.

What authority does the state agency retain with this new federal NMLS system?
Each state agency retains authority to approve, deny, suspend, or revoke mortgage originator licenses. The NMLS is only an electronic repository of applications and renewals.

Who do I contact if I have questions about the NMLS?

For questions relating to the Nationwide Mortgage Licensing System, please contact the NMLS Call Center at (240) 386-4444.

Who do I contact if I have questions about Michigan's requirements?
For questions relating to Michigan's state-specific requirements visit their web site or call (877) 999-6442.

What is the purpose of the SAFE Mortgage Loan Originator Test?
As required by the SAFE Act, the SAFE Mortgage Loan Originator Test is designed to adequately measure an individual’s knowledge and comprehension in appropriate areas, to include:

• Ethics;
• Federal law and regulation pertaining to mortgage origination;
• State law and regulation pertaining to mortgage origination;
• Federal and State law and regulation, including instruction on fraud, consumer protection, the nontraditional mortgage marketplace, and fair lending issues.

The SAFE Mortgage Loan Originator Test includes two components: a National Component and a State component.

Will Mortgage Loan Originators have to take a test for each state or jurisdiction they conduct loan origination activities?
Mortgage Loan Originators will have to pass the State Component for each state or jurisdiction they conduct loan origination activities. The National Component will only have to be passed once. Mortgage loan originators who have successfully passed a state required test previously may not have to take the State Component for that state. The state regulatory agency will be able to verify if the State Component is required.

What are the fees for taking the SAFE Mortgage Loan Originator Test?
The National Component is $92 and each State Component is $69.

Is prelicense education required prior to taking the SAFE Mortgage Loan Originator Test?
No. It is highly recommended to take prelicense education prior to taking the SAFE Mortgage Loan Originator Test, but not required.