Mortgage Loan Originator License: FAQ
Q: Is the Chamberlin Real Estate School an NMLS approved education provider?
Q: Will Chamberlin offer the 20-Hour Prelicense Education course online?
Q: What is the Secure and Fair Enforcement Act (SAFE Act)?
Q: Who is required to have the new Mortgage Originators license?
Q: If I work for a Commercial Bank do I need to take the SAFE-required education courses?
Q: Do I need the new Mortgage Loan Originator license if I am licensed as a real estate salesperson or broker under the Department of Real Estate?
Q: Do I need the new Mortgage Loan Originator license if I already hold a license from the California Department of Corporations (DOC) under the California Residential Mortgage Lending Act (CRMLA) or the California Finance Lenders Law (CFLL)?
Q: How do I apply for a license?
Q: Who do I contact if I have questions about the NMLS?
Q: Can the prelicense education be completed online?
Q: Will the Chamberlin NMLS-approved prelicense course help me pass the SAFE Loan Originator Test?
Q: How do I report my 20-hour prelicense course completion to the NMLS?
Q: Do I need an NMLS "unique identifier" to have my credits banked with the NMLS or enroll for the SAFE Loan Originator Test?
Q: What exactly is an NMLS "unique identifier"?
Q: When will the SAFE Mortgage Loan Originator Test be available in California?
Q: What are the fees for taking the SAFE Mortgage Loan Originator Test?
Q: How do I apply for the National and State license examinations?
Q: What will be covered on the National and State license examinations?
Q: Where is MLO license examination given?
Q: Is prelicense education required prior to taking the SAFE Mortgage Loan Originator Test?
Q: What is the SAFE Mortgage Licensing Act?
Q: Who does the SAFE Mortgage Act impact?
Q: What is the NMLS or NMLSR?
Q: What information will be in the NMLS database?
Q: What type of application form is used to get a mortgage originator's license?
Q: Is the Chamberlin Real Estate School an NMLS approved education provider?
 Yes. Sponsor #: 1400276.
Q: Will Chamberlin offer the 20-Hour Prelicense Education course online?
Yes. The Chamberlin Real Estate School is already an approved course provider under the NMLS (Provider ID: 1400276). We are currently developing a 20-hour online instructor-led course that will meet the prelicense education requirements. This course will include the required state specific content for the California portion of the State exam. We will update our web site immediately when our new prelicense course is available. If you would like to be notified of updated information and when our course is available, send email to admin@chamberlinschools.com.
Q: What is the Secure and Fair Enforcement Act (SAFE Act)?
Title V of P.L. 110-289, the Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (“SAFE Act”), was passed on July 30, 2008. The new federal law gave states one year to pass legislation requiring the licensure of mortgage loan originators according to national standards and the participation of state agencies on the Nationwide Mortgage Licensing System and Registry (NMLS). The SAFE Act is designed to enhance consumer protection and reduce fraud through the setting of minimum standards for the licensing and registration of state-licensed mortgage loan. Mortgage loan originators who work for an insured depository or its owned or controlled subsidiary that is regulated by a federal banking agency, or for an institution regulated by the Farm Credit Administration, are registered. All other mortgage loan originators are licensed by the states.
The SAFE Act requires state-licensed MLOs to pass a written qualified test, to complete pre-licensure education courses, and to take annual continuing education courses. The SAFE Act also requires all MLOs to submit fingerprints to the Nationwide Mortgage Licensing System (NMLS) for submission to the FBI for a criminal background check; and state-licensed MLOs to provide authorization for NMLS to obtain an independent credit report.
Q: Who is required to have the new Mortgage Originators license?
Any person who provides services as a mortgage loan originator in California must apply for and receive a mortgage loan originator license by July 31, 2010. The mortgage loan originator must also be employed by and sponsored by a Department of Corporations licensee under the California Residential Mortgage Lending Act (CRMLA) or the California Finance Lenders Law (CFLL). DRE licensees (salesperson and broker) must obtain a special "license endorsement" to be a loan originator by December 31, 2010.
A mortgage loan originator is an individual who, for compensation or gain, or in the expectation of compensation or gain, takes a residential mortgage loan application or offers or negotiates terms of a residential mortgage loan.
A residential mortgage loan means any loan primarily for personal, family or household use that is secured by a mortgage, deed of trust, or other equivalent consensual security interest on a dwelling which contains 1 to 4 residential units. Dwelling includes an individual condominium unit, cooperative unit, mobile home and trailer if it is used as a residence.
Q: If I work for a Commercial Bank do I need to take the SAFE-required education courses?
If you work for an insured depository regulated by OCC, OTS, FDIC, FED and NCUA or the Farm Credit Administration you are not required to take the SAFE-required pre or continuing education courses. You still can and may want to take the relevant PE and CE courses in the event that you change employment and work for a state-licensed lender or broker.
Q: Do I need the new Mortgage Loan Originator license if I am licensed as a real estate salesperson or broker under the Department of Real Estate?
No. Real estate licensees (salesperson or broker) who conduct residential MLO activities must apply for and obtain a "license endorsement" on their real estate license. DRE licensees must still satisfy the federal requirements for MLO licensure. This includes taking and passing the National and State component license examinations. The DRE has decided to exempt existing licensees from the 20-hour MLO prelicense requirement. Most DRE licensees will take our 20-hour prelicense course for "exam prep" since the state examination is very difficult.  Download the DRE letter for complete details
Q: Do I need the new Mortgage Loan Originator license if I already hold a license from the California Department of Corporations (DOC) under the California Residential Mortgage Lending Act (CRMLA) or the California Finance Lenders Law (CFLL)?
Yes. All Licensees that currently
hold a license under the Department of Corporations in connection
with the California Residential Mortgage Lending Act (CRMLA)
the California Finance Lenders Law (CFLL), must obtain the
new Mortgage Loan Originator license. The requirements to
obtain the license are:
- Complete 20 hours of NMLS-approved prelicense education
- Pass a national background and credit check.
- Pass both the National and California components of the SAFE Mortgage Loan Originator Test
 . The SAFE Mortgage Loan Originator test is actually two exams, a national exam and a state exam, which may be taken separately.
- Register with the Nationwide Mortgage Licensing Registry (NMLS).
Transition Plan: California Department of Corporations: Individuals holding license under the California Finance Lenders Law (CFLL)
Letter to licensees from DOC
Q: How do I apply for a license?
1. Each mortgage loan originator must be separately licensed which requires the submission of Form MU4 through NMLS to the California Department of Corporations. The Form MU4 must be submitted electronically through the NMLS website at http://mortgage.nationwidelicensingsystem.org.
For NMLS system questions, call the NMLS Call Center at 240-386-4444.
2. The mortgage loan originator's license will not be approved until a sponsorship request is submitted by the mortgage loan originator's employer. A quick guide titled "Create a Company Sponsorship" at the following link will help walk your company through this process: NMLS Quick Guides.
3. License approval will be issued in an "Approved-Conditional" status once the MU4 filing is reviewed by the Department of Corporations and all other license requirements are met. To receive full "Approval" status the mortgage loan originator must meet the following requirements by July 31, 2010. Applicants are encouraged to submit their mortgage loan originator applications to the Department of Corporations by May 28, 2010 to allow for processing and completion of the application and license issuance by July 31, 2010.
- Certification that 20 hours of pre-license education courses have been completed
- Passing grade on a national and California Mortgage Loan Originator test
- Fingerprints for an FBI criminal history background check
- Authorization for a credit report to be provided to the Department of Corporations
- License must be sponsored by a company licensed by the Department of Corporations.
Q: Who do I contact if I have questions about the NMLS?
For questions relating to the Nationwide Mortgage Licensing System, please contact the NMLS Call Center at (240) 386-4444.
Q: Can the prelicense education be completed online?
Yes. The Chamberlin Real Estate School is already an approved course provider
under the NMLS (Provider ID: 1400276). We are currently developing a 20-hour
online instructor-led course that will meet the prelicense education requirements.
This course will include the required state specific content for the California
portion of the State exam.
Q: Will the Chamberlin NMLS-approved prelicense course help me pass the SAFE Loan Originator Test?
The Chamberlin 20-hour online prelicense course will prepare you to pass both National and State portions of the SAFE Loan Originator Test. Progress questions, lesson quizzes, exercises, and final exam questions will be similar to those you will encounter on the state test.
Q: How do I report my 20-hour prelicense course completion to the NMLS?
The NMLS requires all completed hours to be "banked" with the NMLS. As your NMLS-approved course provider, Chamberlin will transmit your completion record to the NMLS. Since the NMLS charges $1.50 per credit hour to bank your credit hours, $30 ($1.50 x 20 hrs.) will be added to your order when you enroll.
Q: Do I need an NMLS "unique identifier" to have my credits banked with the NMLS or enroll for the SAFE Loan Originator Test?
Yes. To have your credits banked or to enroll for the SAFE Loan Originator Test you must have a Unique Identifier. The NMLS Resource Center makes it easy to get registered and receive your unique identifier.
Q: What exactly is an NMLS "unique identifier"?
Each loan originator registered in the NMLS, National Registry, will be permanently assigned a number that will help electronically track them. A loan originator's unique identifier will not change as her or she moves from state to state. In fact, the process of being licensed in additional states is streamlined by just adding the new state's license to the current record.
Q: When will the SAFE Mortgage Loan Originator Test be available in California?
Both the State and National Component are available now.
Q: What are the fees for taking the SAFE Mortgage Loan Originator Test?
The National Component is $92 and each State Component is $69.
2010 Fee Schedule:
Q: How do I apply for the National and State license examinations?
To learn more about taking a SAFE test, download the MLO Testing Handbook It is a guide to the entire testing process and aids candidates in applying for the state exam(s).
Q: What will be covered on the National and State license examinations?
National Component (90 scored test questions - 10 unscored test questions) — Content Outline:
CA State Component (50 scored test questions - 10 unscored test questions) — Content Outline:
Q: Where is MLO license examination given?
Search for an approved testing center here:
Q: Is prelicense education required prior to taking the SAFE Mortgage Loan Originator Test?
No. It is recommended to take prelicense education prior to taking the SAFE Mortgage Loan Originator Test but not required.
Q: What is the SAFE Mortgage Licensing Act?
SAFE stands for Secure and Fair Enforcement for Mortgage Licensing Act of 2008. The law went into effect July 2008. It is Title V of a 700-page piece of legislation entitled the Housing and Economic Recovery act of 2008. The Act is designed to protect consumers by requiring states to use uniform standards for licensing individuals wanting to serve as loan originators. Uniform standards include registry in a national database of loan originators, education and testing requirements, and screening individuals with background checks for past felonies and demonstrated financial responsibility.
Q: Who does the SAFE Mortgage Act impact?
The SAFE Mortgage Licensing Act applies to all loan originators. A loan originator is anyone who is compensated to take a residential mortgage loan application and offer or negotiate terms of a residential mortgage loan.
Q: What is the NMLS or NMLSR?
NMLS is the Nationwide Mortgage Licensing System and Registry. Each applicant is required to submit applicant information, including fingerprints, personal history and experience. This information is stored in a national database of mortgage originators, developed and maintained by the Conference of State Bank Supervisors.
Q: What information will be in the NMLS database?
The database will contain licensing information, enforcement actions and background data for every state-licensed mortgage broker, loan originator and lender. Those individuals operating in states without licensing requirements will have the opportunity to submit information voluntarily.
Q: What type of application form is used to get a mortgage originator's license?
The NMLS has four application forms: MU1, MU2, MU3, and MU4.
Mortgage originators use the Form MU4, which is the Uniform Individual Mortgage License/Registration and Consent form. It is submitted to the jurisdiction where the applicant is filing. A mortgage originator must be affiliated with an employer for the form to be submitted. Certain employing brokers submit this form in behalf of their loan originators.
Form MU1 is the Uniform Mortgage Lender/Mortgage Broker form that is required to be completed and submitted by companies and sole proprietorships. Each MU1 form must be accompanied by at least MU2 form that identifies the firm's key persons in control. Finally, the MU3 form is used to sign up a branch office with the NMLS. Uniform Licensing Forms (MU Forms):
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