Several states have recently updated their licensing requirements in line with the Nationwide Mortgage Licensing System. Some states are also requiring that servicers obtain licensing.
As of this month, an amendment to New Hampshire’s licensing provisions require the licensing of branch locations of mortgage servicers, according to Mortgage Banking Update from Patton Boggs LLP. The requirement comes as the state amended its definition of “mortgage servicing company” to include entities that hold servicing rights. Branch managers of mortgage bankers and brokers also now require a mortgage loan originator license.
Employees of mortgage servicing companies will need to obtain mortgage loan originator licensing by July 31.
Also on July 31, Connecticut licensees and their originators will be required to obtain a new surety bond instead of individual surety bonds for each licensed location, the newsletter said. Mortgage lenders as well as correspondent lenders will be required to maintain a bond ranging from $100,000 to $500,000, while mortgage broker bonds will range from $50,000 to $150,000.
The Washington, D.C.-based company said Vermont law now requires originators to update their licensing status on the NMLS within 15 days of any change of employment or sponsorship. In addition, as of next year, Vermont will require a license for third-party loan servicers — though licensees who retain servicing rights on loans initially closed in the lender’s name then sell them to a third party will be exempt.
Over in Louisiana, a law was amended to require 20 hours of NMLS-approved pre-licensure education instead of 24 hours of approved education for mortgage loan originator license applicants, Patton Boggs reported. The annual continuing education requirement has been reduced to eight from 10 hours. Additionally, a requirement to complete courses offered by the Mortgage Bankers Association or the National Association of Mortgage Brokers has been dropped.
The Washington Department of Financial Institutions is requiring that loan officers who do not hold active Washington mortgage loan originator licenses should hand over active loans to licensed originators, the Mortgage Banking Update said. The new requirement is the result of House Bill 2608, which became law in March and also requires mortgage servicers to be licensed. Servicers include firms that collect payments on behalf of lenders or investors, service reverse mortgages or work with borrowers and lenders to modify loans.
Minnesota’s Department of Commerce and Nevada’s of Mortgage Lending will being accepting license applications and transition requests through the NMLS on Oct. 1, Patton Boggs indicated.
The law firm reported that California’s Department of Corporations hopes to have all of its mortgage loan originator license applications processed by the end of this month. The filing deadline was June 15.
Virginia’s law was amended to require registration through the NMLS as of July 1, according to Patton Boggs.
A change to a mortgage licensee’s contact information or an adverse reduction of an individual licensee’s credit score below the threshold of 600 are now considered a material changes in North Carolina and require that the North Carolina Banking Commission be notified, the newsletter indicated.
A recent story from Examiner.com indicated that there are 4,687 mortgage originators in Oregon working for 1,610 non-bank mortgage lending offices.
