Corrected: As of January 18, 2013, the SAFE MLO National Test with Uniform State Content will reflect the recent CFPB mortgage rules. For candidates taking the test on or after January 18, 2014, they will need to prepare using the new version of the outline with the Effective Date of January 18, 2014. For candidates scheduled to take the test prior to January 18, 2014, they can continue to prepare using the outline with the effective date of November 16, 2012. The Testing Page of the NMLS Resource Center includes both versions, and can be accessed here.
For more information on the CFPB mortgage rule changes that will be incorporated, please see the CFPB website at: http://www.consumerfinance.gov/regulatory-implementation/
If you have any questions, please contact Matt Comber, Sr. Manager, Test Development and Maintenance, at firstname.lastname@example.org.
On December 6, HUD issued Mortgage Letter 2013-43 which sets FHA’s maximum loan limits effective for case numbers assigned on or after January 1, 2014 through December 31, 2014. As required by statute, the national high cost loan limit will be reduced for one unit properties from $729,750 to $625,500. The base loan limit for one-unit properties will remain unchanged at $271,050. For counties eligible for FHA loan limits above the base limit, the new formula will be based on 115% of the area median sales price, down from the current multiplier of 125%. However, according to the MBA, in addition to the reduction of the multiplier from 125% to 115%, HUD also elected to use the current home price index, resulting in even larger reductions in loan limits for than expected.
Additional details and a copy of the 2013-43 Mortgage Letter may be found here: http://portal.hud.gov/hudportal/HUD?src=/program_offices/administration/hudclips/letters/mortgagee
The Montana Division of Banking and Financial Institutions (Montana DBFI) has notified NMLS of a change to its pre-licensure education requirements. Effective March 1, 2014, individuals seeking licensure with Montana DBFI will be required to complete two (2) hours of Montana DBFI-specific education. The new pre-licensure education requirements are as follows:
- 3 hours of Federal Law;
- 3 hours of Ethics (must include fraud, consumer protection, and fair lending issues);
- 2 hours lending standards for Non-Traditional mortgage products;
- 10 hours of General Electives
- 2 hours of Montana DBFI electives
- Total = 20 hours
NMLS has posted an Education Notice explaining in detail the new education requirements. Course providers intending to offer a course to meet the new requirements need to pay close attention to the content requirements and reference list contained in the education notice. The notice may be found on the course provider section of the NMLS Resource Center under the section Important Policy Information.
NMLS has posted the 2014 Functional Specifications for All NMLS Approved Courses (version 5). This version is in the course provider page of the NMLS Resource Center under the section titled “Submitting a Course for Approval.” As most readers will note, no changes have been made to the document since the last update on June 20, 2013.
As we go into 2014 our focus will be on ensuring course content is current to reflect all the CFPB’s final rule changes, a majority of which go into effect in January. We will also be continuing to move forward in our efforts to validate that courses are being delivered in accordance with best practices and the functional specification.
Providers should also be advised that last week the CFPB also released the TILA-RESPA final rule and new disclosure forms. The effective date for this final rule is August 1, 2015. Specific details on the final rule are available at cfpb.gov.