Monthly Archives: March 2015

ROC Survey Available; Let Us Know How It’s Going


On March 1, 2015, NMLS began requiring students to agree to a Rules of Conduct (ROC) prior to the start of a classroom or webinar course.  If you’re currently offering classroom or webinar courses you are invited to complete a brief survey to let us know how the process is working.  The survey link is available on the homepage of the EMS.

The due date for the ROC to be implemented in online courses is July 1, 2015.

Updated Education Notice Published for WA


NMLS approved course providers are advised that an updated State-Specific Education Notice has been posted for Washington.   The notice includes minor changes to the reference list.

NMLS publishes Education Notices to inform providers of state-specific course content requirements and to provide an agency-approved references list. Courses are approved in accordance with the requirements in the Notice. The Education Notices are on a two year review cycle (the first one was published in 2013); however, a state-agency may request a change to their notice at any time. NMLS intends to have an education notice for all 28 agencies that currently have a state-specific requirement by the end of the year.

The updated Education Notices are available on the policy page of the course provider section of the NMLS Resource Center.

Updated Education Notices Posted for NE, MI, and VT


NMLS approved course providers are advised that updated State-Specific Education Notices have been posted for NE (reference list update), VT (reference list update), and MI (course content change and updated reference list).

NMLS publishes Education Notices to inform providers of state-specific course content requirements and to provide an agency-approved references list. Courses are approved in accordance with the requirements in the Notice. The Education Notices are on a two year review cycle (the first one was published in 2013); however, a state-agency may request a change to their notice at any time. NMLS intends to have an education notice for all 28 agencies that currently have a state-specific requirement by the end of the year.

The updated Education Notices are available on the policy page of the course provider section of the NMLS Resource Center.

NMLS Announces Intent to Establish Course Provider Working Group


NMLS is announcing that it is forming a Course Provider Working Group (CPWD) to provide relevant input on matters pertaining to course approval and course delivery policies. The CPWD will be composed of nine (9) NMLS approved course providers comprised of a mix of large national organizations, small independent companies, and schools that offer classroom, online, webinar, or a mix of course formats. Details about the CPWD, including membership criteria and the submission deadline is posted on the policy page of course provider section of the NMLS Resource Center.

Latest CFPB Supervisory Report Notes Mortgage and Fair Lending Violations


The Consumer Financial Protection Bureau (CFPB) released its latest supervision report Wednesday, highlighting legal violations uncovered by the Bureau’s examiners.  The Bureau found deceptive student loan debt collection practices, unfair and deceptive overdraft practices, mortgage origination violations, fair lending violations, and mishandled disputes by consumer reporting agencies.

According to information posted on the CFPB’s web site, Bureau examiners found that some loan originators illegally received compensation based on the terms of the loan. Examiners also found that at some loan originators the amounts disclosed on the HUD-1 form improperly exceeded those disclosed on the Good Faith Estimate. Some loan originators advertised the length of payment, amount of payments, numbers of payments, and finance charges without providing the required disclosures. And, the Bureau found weaknesses in compliance management systems that played a significant role in the identified violations.

With regard to fair lending violations, Bureau examiners found that one or more institutions rejected mortgage applications from consumers because they relied on public assistance income, such as Social Security or retirement benefits, in order to repay the loan. Marketing materials contained written statements regarding the prohibition on non-employment sources of income, and discouraged applicants who received public assistance from applying for credit. This violates the Equal Credit Opportunity Act. CFPB examiners directed that remediation be made to harmed applicants.

The full supervision report may be accessed on the CFPB’s web site.

Notice Rescinding Student Web Cams Posted


NMLS has posted a notice regarding an update to the Functional Specification to rescind the requirement for students to have web cams for classroom equivalent (webinar) courses. However, course providers are required to have processes in place to validate a student’s identity and can confirm the student is present for the entire course. The full notice has is available on the policy page of the course provider section of the NMLS Resource Center.