SAFE Loan Broker Training and Exam

Article Written By: David Wain

The SAFE Act established the Nationwide Mortgage Licensing System and Registry (NMLSandR) in order to register and license certain MLO s, which requires the passing of the loan officer exam before applying for licensure.

The initial step, before taking the loan officer exam, each loan originator must register with the NMLS and obtain and maintain a Unique Identifier (UI). The SAFE Act stipulates that all MLO s working for various depository institutions and their subsidiaries simply have to register, which only requires finger printing for criminal background checks.

All non-depository MLO s in addition to registering, must be licensed by the state. Essentially, all MLO s must at a minimum be registered through and recognized by the NMLS, which is operated by the Conference of State Bank Supervisors (CSBS) and the American Association of Residential Mortgage Regulators (AARMR).

Registration with the NMLS is just the first step; the real worry is all about passing the loan officer exam or what is formally known as the SAFE Act, Mortgage Loan Originator test. Prior to applying for a state MLO license, each loan officer must attend loan broker training, known as MLO Pre-license Education or PE. Each license applicant must also pass two loan officer exams referred to as the state and national test components.

The loan broker training or PE must be NMLS approved and will consist of various topics which include federal laws, regulations, loan originator activities, ethics, mortgage fraud and consumer protections, which include training on non-traditional mortgage products and fair lending issues. To apply for a MLO license you must pass both the national and state exams with a minimum test score of 75%. Each NMLS registered MLO will be issued a Unique Identifier (UI) that will be used to record and track the MLO s loan broker training and loan officer exam results.

The first step is to choose an approved loan broker training institution that offers PE courses. The SAFE Act mandates a minimum of 20 hours of loan broker training (PE), however each state can require additional state specific mortgage law classes. The key is to find a reputable, NMLS approved education provider to help guide you through the process. There are three nationally approved PE formats – you can choose between the traditional live classroom format, instructor led online, or live equivalent online broadcast.

The live equivalent format has proved to be a favorite loan broker training method because it offers the power of a live classroom event with the convenience of online. You can explore various loan broker training sites for more information and live support.

You will save time, money and heartache by passing the loan officer exam on the first attempt. Any MLO that fails to pass the MLO test must wait 30 days between test retakes. These loan officer exams are challenging and it requires targeted exam prep tools and proper commitment to study in order to pass on the first attempt.

About the Author

For more information about Loan Broker Training Please visit www.abacusmortgagetraining.com

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