|Mortgage Loan Originators "Approved Deficient" Please Note: Your July 31, 2010 Deadline Is Just Around the Corner!|
In preparation for the July 31, 2010 deadline, the Office of the Commissioner of Financial Regulation (the "Agency") has begun
reviewing and updating the statuses of "approved-deficient" licensees. Generally, you are "APPROVED DEFICIENT" because you were previously exempt and applied for licensing under the interim status prior to July 31, 2009. Under the interim status, you were provided a one year grace period to meet certain initial licensing requirements and your license has been designated "approved deficient" until these requirements are met. The grace period for "approved deficient" licensees ends July 31, 2010.
IF YOU ARE "APPROVED DEFICIENT", YOU MUST SATISFY ALL OF THE MORTGAGE LOAN ORIGINATOR ("ML0") LICENSE REQUIREMENTS BY JULY 31, 2010. ONCE YOU DO SO, YOUR LICENSE STATUS CAN BE CHANGED FROM "APPROVED DEFICIENT" TO APPROVED. SEE BELOW TO REVIEW THE REQUIREMENTS FOR MLO LICENSEES WHO WERE "APPROVED DEFICIENT". (Also see the Maryland Mortgage Licensing Update #15 for details).
In addition to previously exempt MLOs, please note that MLOs who were licensed at transition and transitioned to the National Mortgage Licensing System (NMLS) in 2009 and 2010 were also provided a longer grace period to meet certain requirements - through December 31, 2010. These licensees were designated "APPROVED CONDITIONAL." While requirements need to be completed by December 31, 2010, the instructions here may be followed to do so NOW. Please act early - there is no benefit to waiting and it will facilitate the process. (Also see the Maryland Mortgage Licensing Update #15 for requirement details for "Approved Conditional" Licensees)
|REQUIREMENTS DUE JULY 31, 2010 FOR MLOs WHO WERE "APPROVED DEFICIENT"
I. Pre-Licensing Education
1 - Completion of SAFE (The Secure and Fair Enforcement for Mortgage Licensing Act of 2008) NMLS-approved PE
2 - Certification of Education
list of SAFE NMLS-approved courses and providers may be found on the NMLS website. Upon successful completion of SAFE NMLS
approved PE your course credits will be uploaded directly to NMLS which will
track your course progress and SAFE PE compliance.
***PLEASE SEE ARTICLE BELOW FOR MORE INFORMATION REGARDING THE PE CERTIFICATION PROCESS.***
- Alternatively, you
may satisfy the SAFE PE requirement by certifying previously completed, Maryland-approved
education during the NMLS certification process. Starting on or about July 1, 2010, Maryland will begin the certification process by
notifying NMLS of all persons from our records who have previously completed at
least 20 hours of Maryland-approved education within the five years prior to the
licensee's submission of a request, via NMLS, for licensure or transition in
the State of Maryland. (See the Maryland Mortgage Licensing Update #14 - Pre-licensing Education Certification and Certification FAQs on our website for additional details) "Approved Deficient" MLOs will have until July 31, 2010 to meet the SAFE PE certification requirement. "Approved Conditional" MLOs will have until September 30, 2010 to meet the SAFE PE certification requirement.
II. SAFE MLO Test
III. Federal Criminal
- The licensee must pass both the National and Maryland State
components of the SAFE MLO test by July 31, 2010. Passage of the National component satisfies that
requirement for all states. (See the Maryland Mortgage Licensing Update #10 for detailed information regarding testing) Additionally, you can visit the NMLS Resource Center Testing Page for more information.
IV. State Criminal
- SAFE requires that all MLOs submit fingerprints
through NMLS for use by the Federal Bureau of Investigation (FBI) to conduct
Federal criminal background checks. If any negative criminal history is
reported, you are required to provide a written explanation and any applicable
legal documentation to the Commissioner for review and determination that you
satisfy the criminal background requirement before your license status may be
updated to "approved." Instructions to complete the criminal background check are available on the Agency website. Additional information concerning federal criminal background check processing can be found on the NMLS Resource Center under Professional Requirements.
Fingerprints, submitted outside the NMLS, are required for
use by the Criminal Justice Information Systems (CJIS) Central Repository of
the Maryland Department of Public Safety and Correction Services to conduct
State criminal background checks. If any
negative criminal history is reported, you are required to provide a written
explanation and any applicable legal documentation to the Commissioner for
review and determination that you satisfy the criminal background requirement
before your license status may be updated to "approved."
- Due to restrictions by the CJIS, the State criminal background check can NOT be executed by
submitting to NMLS and must be completed separate from the Federal criminal background
check. We regret the inconvenience. However, if you have not already done so, as
soon as possible, please visit an electronic fingerprinting location for
processing. See the Maryland Office of the Commissioner of Financial Regulation website (Instructions for Submitting Fingerprints to Maryland) for
electronic fingerprinting locations in Maryland. Electronic fingerprinting usually results in
a much quicker response time.
IMPORTANT: You must provide this Agency's authorization number
(9700081215) and ORI # (MD920370Z) or the Commissioner's office will NOT
receive the results of your State criminal background check. Alternatively, and if you are outside the State of Maryland, forward the
completed State fingerprint card and the required fees to CJIS, P.O. Box 32708,
Pikesville, Maryland 21282-2708.
V. Credit Report
- IMPORTANT: IF you choose NOT to do electronic fingerprinting, you must use the fingerprint card received from the
Commissioner's Office or we will NOT receive the results of your State criminal
(Please note: "Approved
Conditional" licensees do NOT
need an additional Maryland State criminal background check since you
have previously completed a Maryland background check, however SAFE requires you to submit fingerprints to NMLS and request a
federal criminal background check.)
- Pursuant to the Federal SAFE Mortgage Licensing Act, an MLO who applies
for a license authorizes the Commissioner of Financial Regulation to acquire
and review his/her credit report. The
Agency is currently reviewing your credit report to determine whether you
satisfy the financial responsibility requirement of the MLO license. If any negative items are disclosed on your
credit report, you are required to submit a detailed explanation and supporting
documentation for review and determination of financial responsibility before
your license status may be updated to "approved."
THE MARYLAND PRE-LICENSING EDUCATION ("PE") CERTIFICATION PROCESS WILL BEGIN ON OR ABOUT JULY 1, 2010!
What is PE Certification? PE "Certification" is a two-part process by which state agencies
certify that licensed MLOs have successfully completed state education
requirements in satisfaction of the SAFE Act PE requirements AND the licensee
must pay a $15 processing fee to NMLS to complete the process. (See Certification Page of the NMLS Resource
Center for more information).
Starting on or about July 1, 2010, Maryland
will begin the certification process by notifying NMLS of all persons from our
records who have previously completed at least 20 hours of Maryland-approved
education within the five years prior to the licensee's submission of a request,
via NMLS, for licensure or transition in the State of Maryland. (See the Maryland Mortgage Licensing Update #14 - Pre-licensing
Education Certification and Certification FAQs on our website for
additional details, as well as Maryland Mortgage Licensing Update #13 - Certification of Pre-licensing Education Can Help You Avoid Having To Take More Pre-Licensing Classes and Save You Time & Money)
Generally, this Agency has maintained records of your prelicensing and continuing
education courses and you do not need to do anything further until you are
notified by NMLS, via email, that the invoice for payment of your certification
processing fee is available. However, it
is possible that you may have completed the required 20 hours without the Agency
having required or been provided such evidence upon which to base your
certification. For example, certain
experienced licensees have not been required to complete and attest to Maryland-approved
education totaling 20 hours to date. Specifically:
If you have
completed additional, Maryland approved education for any reason enabling you
to reach the 20 hours required and believe you are eligible for certification,
but do NOT receive an email from NMLS by July 10 notifying you of your eligibility
to certify and instructing you to do so, you should send in your proof of 20
hours of Maryland-approved education by July 31, 2010 to enable the Agency to complete your
- If you were originally licensed based
on the "experience" criteria and submitted a resume showing more than 3 years
experience (which satisfied the initial licensure requirement and exempted you
from pre-licensing education), then the Agency has no record of education from
that licensing event.
- Further, even if you then completed one
or more Maryland
renewals, you were required to complete and certify only 6 hours of continuing
education at each renewal if you had more than 10 years experience at the time
of the renewal. In such cases, the Agency does not have evidence at this time that the individual
has completed the 20 hours of Maryland
Note: Licensees eligible to have their education certified will receive
an email from NMLS asking them to complete payment of the certification
invoice. Payment of the invoice must be
completed by July 31, 2010 to satisfy the Maryland MLO license PE requirement for "Approved Deficient" MLOs and by September 30, 2010 for "Approved Conditional" MLOs.
Please note, the applicant/licensee is fully responsible for all of the
requirements of the license for which they are applying. To facilitate
application through the NMLS, the jurisdiction specific requirements contained
herein are for guidance only. Should you have questions, please consult legal
For more information - Contact NMLS at 240-386-4444 for
questions pertaining to the NMLS. Contact the Maryland Commissioner of Financial
Regulation licensing staff by phone at 410-230-6155 or 888-784-0136 for further
assistance regarding Maryland specific requirements.