Who Monitors Mortgage Lenders?
In 2008, Congress passed the Secure and Fair Enforcement for Mortgage Licensing Act ("SAFE Act") to reduce fraud and increase consumer protection through a nationwide registry of mortgage lenders. Although the SAFE Act was passed in 2008, some states do not require registration with the Nationwide Mortgage Licensing System until 2010 or 2011.The SAFE Act requires some minimum standards.
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Education
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Keep your knowledge current. Mortgage lenders must complete 20 hours of education in federal law and regulations, consumer protection, fair lending and nontraditional mortgage knowledge.
Testing
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Demonstrate what you know. Mortgage lenders must pass a written test developed by the Nationwide Mortgage Licensing System (NMLS) and Registry for nationwide licensing. In addition, mortgage lenders must pass a test for each state in which they want to conduct business.
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Fingerprint/Criminal Background Check
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Mandatory background investigation. Mortgage lenders must pass a criminal background check and be fingerprinted with the NMLS.
Evidence of Financial Responsibility
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Personal finances matter. The SAFE Act requires that mortgage lenders demonstrate financial responsibility through maintaining impeccable personal finances. Mortgage lenders authorize the NMLS to obtain credit reports from a consumer reporting agency. Any mortgage lender who demonstrates financial irresponsibility through poor credit, liens and judgments may be denied a license.
Continuing Education
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Keep learning. Each year mortgage lenders must complete a minimum of eight hours of continuing education to maintain a current license.
Mortgage Lender
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Your Mortgage Lender Check the status of your mortgage lender (See Resources).
If you have a complaint about your mortgage lender, contact your statewide licensing agency and the NMLS (See Resources).
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References
Resources
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