Department of Corporations Presented by: Louisa Broudy, Deputy Commissioner DiAun Burns, CRMLA Special Administrator Patricia Speight, CFLL Special Administrator SAFE/Senate Bill 36 Secure and Fair Enforcement Mortgage Licensing Act of 2008 NMLS National Mortgage Licensing System

Department of Corporations 1. When NMLS Will Be Used By DOC Licensees 2. Accessing NMLS 3. Forms to Complete 4. MLO License Requirements 5. Resources Discussion Topics

Department of Corporations Transition existing DOC licensees onto NMLS Process all CRMLA license applications Process CFLL license applications for those companies that make or broker loans secured by residential real estate Process MLO applications When to use NMLS

Department of Corporations – fault.aspxhttp://mortgage.nationwidelicensingsystem.org/Pages/de fault.aspx –Begin with “Getting Started with NMLS” –Companies must complete a Company Account Request Form. If your company already has access to NMLS, you do not need to complete this step. –MLOs should begin by discussing filing requirements with their employer. An MLO will create an individual account and then begin the application process. Accessing NMLS

Department of Corporations MU 1 – Company Record MU2 – Control Person Executive Officer, Director, Shareholders, Branch Manager and Qualified Individuals. Qualified Individuals include any person responsible for lending activities in the state. MU3 – Branch Record MU4 – MLO Record Forms to Complete

Department of Corporations NMLS Filings for Transitioning and Licensing CRMLA licensees and CFLL licensees that make or broker loans secured by residential real estate must complete company MU1 Officers, directors, shareholders and qualified individuals will be required to file MU2 Establish branch license on NMLS system-MU3 filing Transition and Licensing

Department of Corporations MLO – Mortgage Loan Originator is a person: Who takes Residential Mortgage Loan Applications; or Who negotiates terms of a residential loan And will be compensated for arranging the loan Residential Loan Secured by real property with a dwelling Dwelling is a residential structure (1-4 units) Includes mobile home or trailer if it is used as a residence Definition-MLO

Department of Corporations A. Filing of Form MU4 and Sponsorship in NMLS by a company licensed by the DOC that holds a valid unique identifier with NMLS. MLO license requirement

Department of Corporations B. Pre-license education-20 hours or Certification by DRE or another state agency. The DOC, in conjunction with the DRE, will certify compliance with the pre-license education requirements for those applicants that apply only to the DOC for an MLO license. The certification will be that the pre-license education requirement has been satisfied based on the education completed to obtain their DRE license. 3 hours Federal Law and Regulations 3 hours Ethics 2 hours Nontraditional Mortgage Products 12 Hours of Elective Topics Completion of courses is not a prerequisite to take an exam Course providers are listed on NMLS Resource Center and must be approved by NMLS MLO license requirement

Department of Corporations C. Passing score on National and CA State Test Test must be taken through test providers approved by NMLS. Visit “Testing” page on NMLS Resource Center for test content outlines and information about enrolling in a test session. An individual who fails a test may retake the test up to 3 consecutive times with at least 30 days passing between each retesting. An applicant who fails 3 consecutive retests must wait at least 6 months before retesting. MLO license requirements

Department of Corporations D. Background Check Fingerprint Requirement Process begins with on-line application filing Appointments scheduled Fee $39 MLO Application Denied if applicant has: Felony conviction in past 7 years MLO License previously revoked in another jurisdiction Life time ban for felonies involving: FraudBreach of trust DishonestyMoney laundering MLO license requirement

Department of Corporations D. Background Check Credit Reports Applicants will be required to authorize a credit report through NMLS between October 2010 and March 1, 2011 DOC has adopted Regulations – available on our website Review for financial responsibility will include: Responses to disclosure questions on application No FICO Liens and judgments for: Fraud Misrepresentation Dishonest dealing Mishandling of trust funds – MLO license requirement

Department of Corporations DOC Transition Year – 2010 MLO Licenses must be received by July 31, Complete all requirements and file application by May 28, 2010 for license to be issued by July 31, Filing Guidelines Detailed filing instructions on DOC and NMLS web sites Use DOC public records when completing applications –go to Financial Services Licensee Listing on our home page. Licensees must keep DOC and NMLS records in sync Application Filing-General Info

Department of Corporations Web site - Includes direct links to NMLS Resource Center and Consumer Access Will include Frequently Asked Questions and Answers Licensing Questions – 866 ASK CORP ( ) NMLS Resource Center Licensees Tab: Quick guides Tutorials - Navigation Guides Sample Forms – MU1, MU2, MU3, & MU4 Policy Guidebook NMLS Call Center – Resources