Monthly Archives: July 2011

Due Date for July Provider and Course Renewals Fast Approaching


This is just a reminder that you’re a course provider and you renewal date is in July, the deadline to submit your application and pay the fees is 11:59pm ET July 31 (this Sunday).  Approval status for any provider that has not submitted their renewal application by the deadline will no longer be valid and any future course offerings will be removed from the system.  If you have questions about the renewal process, please see the June 21 posting in the Newsletter or contact Alan Ridenour at aridenour@csbs.org.

The deadline for July course renewals is also Sunday, July 31 at 11:59pm ET.  Course and provider renewals for August will open on Monday.

Clarification Regarding Use of NMLS Logo


Course providers are reminded that on May 4th, a notice was posted in the Newsletter informing of a change to the Policy on Business Arrangements, Reselling, and Marketing of NMLS Approved Courses which stated that effective July 1, 2011, the “NMLS Approved Course Provider” logo was no longer valid for use.   Since July 1, we have observed providers using the NMLS “house” logo to create their own official-looking approved provider icons.  To clarify SRR’s position on the use of the NMLS logo: it was never the intent – nor does SRR give permission-  for any organization to use, modify, or incorporate the NMLS logo into any provider-created design, seal, or other iconography.  To do is a violation of an SRR trademark.

In accordance with the Policy on Business Arrangement, Reselling, and Marketing of NMLS Approved Courses and the Standards of Conduct Agreement, approved providers may use the words “NMLS Approved” along with their provider ID number to market themselves.  They may do this only if they have completed the application process and have at least one course approved and that course is in an active status.  The reason for this policy change is to shift emphasis away from approved provider status and to draw attention to, and place emphasis on, specifically approved courses.

Additionally, effective July 1, new approved course logos started to be issued.  The new approved course logo incorporates a specific course numbers and may be used to advertise a specific course either in print or online.  It will take approximately 30 days to distribute the new logos; providers may continue to use the old approved course logo until they are in receipt of the new one.

HUD Final Rule Changes Retake Policy for SAFE MLO Tests


On June 30, 2011 the US Department of Housing and Urban Development (HUD) published its final rule (the Rule) about the implementation of the SAFE Act.  The Rule clarified the number of times a candidate may take a SAFE MLO Test Component before being required to sit out the 180-day wait period.

The HUD Rule

The HUD Rule states that any person who takes the National or a State Component of the SAFE MLO Test must sit out for six month (180 days) after the person fails a test component three (3) times.  Currently candidates may fail a test component four (4) times before being required to wait six months before being allowed to take the test again.  The HUD final rule is effective Monday, August 29, 2011. Anyone who enrolls to take a test on or after August 29th will be subject to the new retake policy.  Any test candidate who enrolls and/or takes the National or State component of the test prior to August 29th is governed by the current policy.

Requirement to Update Course Content

A significant number of courses, especially pre-licensure courses that make reference to the SAFE Act and/or state licensing requirements, contain information which details the SAFE Act’s requirement to wait six months after failing three consecutive tests (Sec 1505(d) of the SAFE Act).  While SRR and the states had taken the more liberal interpretation of the SAFE Act’s language that “an individual may retake a test three (3) consecutive times” to mean an individual can take the test four times before having to sit out for 180 days, the HUD final rule makes it clear that a test candidate may only take and fail the test three consecutive times, and after the third failure, is required to wait at least six (6) months before taking the test again.

In order to ensure students are presented with the correct information, all course content that discusses the number of times an individual may take and fail, either the national or state component of the SAFE MLO Test, must be updated by August 29, 2011 to reflect the language of the HUD final rule.

Questions regarding the HUD final rule on test taking should be directed to Rich Madison, Sr. Director, Mortgage Education Programs at rmadison@csbs.org.

The HUD final rule, “SAFE Mortgage Licensing Act: Minimum Licensing Standards and Oversight Responsibilities” can be found at:  http://www.gpo.gov/fdsys/pkg/FR-2011-06-30/pdf/2011-15672.pdf

State Licensing Report Now Available


NMLS has published a report entitled A Nationwide View on State-Licensed Mortgage Entities.  The report provides aggregated information at a national and state level for companies, branches and individuals licensed or registered by state agencies for the first quarter of 2011.  The report may be accessed from the NMLS Resource Center at: http://mortgage.nationwidelicensingsystem.org/about/Documents/Quarter-1-2011-Licensing-Data.pdf

Providers should keep in mind that the data contained in the report is as of the end of Q1 2011.  The number of MLOs requiring CE this year is 85,000 and reflects the number of individuals licensed as of January 1, 2011.

Test Outline for Puerto Rico Now Available


The English version of the SAFE MLO Test content outline for the Commonwealth of Puerto Rico has been released and is available in the NMLS Resource Center (a Spanish version is currently being developed).  Enrollment for the Puerto Rico test component is scheduled to open in mid-August and appointments are scheduled to be available in mid-September.  Also, please note that candidates in Puerto Rico can currently enroll and take the National component of the SAFE MLO test.

Course providers offering PE courses are encouraged to make mention of the content outlines to their students as they are an excellent resource to assist MLOs to prepare for a specific test component.  The outlines for Puerto Rico, the National component and other state components are available at: http://mortgage.nationwidelicensingsystem.org/profreq/testing/Pages/TestContentOutline.aspx

Status of 2011 MLO PE/CE Course Completions


As of June 30, 2011, new or existing MLOs have completed the following number of hours of either pre-licensure (PE) or continuing education (CE):

Number of Hours PE Completed: Over 340,000 hours of PE have been completed since January 1, 2011, equating to approximately 17,015 MLOs.  The greatest number of hours was completed during the first quarter.  A significant number of hours were also completed in mid-May and mid-June.

Number of Hours of CE Completed: Approximately 90,000 hours of CE have been completed since January 1, 2011, equating to approximately 11,340 MLOs.  85,000 MLOs were licensed at the end of 2010 so this is the number of MLOs who are expected to complete CE in 2011.  Accordingly, 13% of the total expected number of MLOs has completed CE as of June 30, 2011.



Late CE Courses Completed
: Approximately 6,275 hours of Late CE has been reported since January 1, 2011.  This equates to approximately 785 MLOs who completed a Late CE course to make-up their CE requirement for 2010.  The greatest numbers of Late CE courses were completed in mid-January, early February, and early March.

Questions regarding of the above information should be directed to Rich Madison, Sr. Director Mortgage Education Programs at rmadison@csbs.org.

NMLS Offices Closed on July 4th


NMLS Offices will be closed on July 4 in observance of Independence Day.  Provides who submit renewal applications (either course or provider) over the holiday weekend should not expect to receive invitations to upload their content into the approval portal (Basecamp) until Tuesday, July 5th.  We wish everybody a safe and wonderful holiday weekend.