Monthly Archives: July 2010

New Credit Banking Receipts


If you’ve completed any credit banking within the past few days you’ve noticed something new at the end of the process: the list of MLOs you banked against and a receipt that itemized the fees paid.  The change is a new enhancement to PULSE that NMLS has been working with Pearson VUE on for the past few months to implement.   The new receipt, which is generated every time credit banking is performed, itemizes the number of course completions submitted, the amount that was authorized on the credit card, the number of course completions successfully completed, and the final total amount that was charged to the card.  The receipt also notes any errors (e.g. mismatched NMLS ID number to student name, or bad NMLS ID number).  These errors are any differences between the number submitted and the number successfully completed.

NMLS is excited to have this new functionality in place since it sends to your e-mail a detailed real-time summary of the transaction as well as specific details on any error.  Please note, that with this new receipt functionality in place, NMLS will stop uploading the individual weekly credit banking summaries into the Course Provider Approval Portal.

Tens of Thousands of MLOs Yet to Pass Test


As was reported on the NMLS SAFE Compliance Countdown blog, there are a large number of MLOs who have not yet taken and passed the MLO SAFE test.  NMLS estimates that at least 135,000 MLOs will be state licensed through NMLS by the end of this year.  However, to date only 64,000 individuals have passed the National Component of the SAFE MLO test.  MLOs who do not pass the national and state component of the test before their state deadline risk having their license terminated.  NMLS is particularly concerned about MLOs who may be waiting until the last minute to schedule and take their test since if an MLO does not pass the test on the first attempt the SAFE Act requires them to wait 30 days before they can take it again (and the first time pass-rate is hovering around 70%).   A chart showing the number of MLOs who have passed the test is available on Compliance Countdown blog at http://nmlssafeact.wordpress.com

New Test Content Outlines Available


Test content outline for the following state components of the MLO SAFE Test were recently posted: WI, KS, VI, and TX.  The content outlines are an excellent resource to assist MLOs to prepare for a specific test since they provide weightings for the various topics that are on the test, and many of them contain reference lists.  The test outlines are available in the NMLS Resource Center at: http://mortgage.nationwidelicensingsystem.org/profreq/testing/Pages/TestContentOutline.aspx

Many State Deadlines Next Week


Thirteen regulatory agencies have a July transition deadlines: SC-BFI, SC-DCA (for licensees on or after 730/09), TN, DC, DE, ID (applicants on or after 7/1/09), MD (interim or previously exempt licensees), MI, MS (applicants approved on or after 7/31/09), NC (SAFE MLO Test), ND (State test is 9/30), NM, and OK.  Specific details pertaining to these deadlines are listed in the MLO SAFE Requirements Compliance Chart.  This chart has also been updated to include information on the certification process and CE requirements.  The chart is available in the NMLS Resource Center at: http://mortgage.nationwidelicensingsystem.org/profreq/Documents/SAFE%20Compliant%20Requirements.pdf

Updated Test Pass Rate Information Available


Updated information pertaining to the pass rate of the MLO SAFE Test to include the pass rate for subsequent re-takes is available:

As of June 30, 2010:

–   The pass rate for the National Component for first-time test takers is: 71%

–   The pass rate for re-taking the National Component is:  44%

–   The aggregate pass rate for the State Component for first-time test takers is:  80%

–   The aggregate pass rate for re-taking a State Component is: 61%

Specific details, including the number of MLOs who have taken either the National or State Component of the test is available in the NMLS Resource Center at: http://mortgage.nationwidelicensingsystem.org/profreq/testing/Documents/SAFE%20MLO%20Test%20Pass%20Rate%20Announcement.pdf

Course Renewal User Guide and Application Form Posted


Eleven course providers have courses eligible for annual renewal starting in August.  In preparation for the start of renewals NMLS has published to the course provider section of the NMLS Resource Center the Course Renewal Application for as well as a User Guide that explains in detail how to submit courses for renewal.  Providers are strongly encouraged to carefully read the User Guide prior to submitting the renewal application.  A few key points that providers need be aware of:

–  Appendix A of the User Guide: NMLS Approved Course Renewal Process provides a check list of course content NMLS expects to have been updated this past year.

–  As part of the course renewal process, providers will be required to submit course material with updated course information highlighted.

–  Providers will need to log into BOTH the PULSE portal as well as the NMLS Course Approval Portal to complete the process.  Instructions about when to use each portal are contained in the User Guide.

–  With rolling renewals, the monthly course renewal period starts on the first day of the month and ends on the last day of the month (so the first period is 1 Aug – 30 Aug).  A course eligible for renewal during a specific month that is not renewed by the last day of the month will lose its NMLS approval status and will automatically be removed from the NMLS Master Course Catalog.

–  36 courses from 11 providers are up for renewal in August 2010; 70 courses from 21 providers are eligible in September, and 60 courses from 23 providers are due in October.

– Providers who have courses up for renewal will be notified by NMLS reminding them that they have pending renewals.

The user guide and course renewal application form can be found here: http://mortgage.nationwidelicensingsystem.org/courseprovider/Pages/Resources.aspx

The Impact of Late Credit Banking


Several states had a deadline for MLOs to complete their testing and education requirements by June 30th.  This morning NMLS received a report that an MLO had their licensed suspended by a state regulator because the individual’s record did not show they had completed pre-licensure education.  As a result, the individual lost a day of work. The problem is that the individual did complete their education on June 16th, however, the course provider did not complete the credit banking until July 1, nearly a week after the 7 day required window.  If the credit banking had been reported on time, the individual would not have had their license suspended.

To comply with the SAFE Act, many states have a July 31 deadline for new MLO’s to complete pre-licensure and/or testing requirements.  As we transition through the rest of the summer and into the fall there are additional deadlines, and then in November and December many states will have a requirement for MLOs to complete continuing education by year end.   As the case above demonstrates, late credit banking is a very serious problem that can adversely impact an individual’s livelihood.  All providers are reminded that they are responsible for reporting course completions to NMLS within 7 calendar days from the scheduled course end date. Detailed instruction on how to credit banking using either the “submit” or “upload” process can be found in the User Guide: Reporting of NMLS Approved Course Completions (Credit Banking) which is available in the NMLS Resource Center. If you encounter a problem with credit banking please contact Alan Ridenour (aridenour@csbs.org) as soon as possible.