IN THIS ISSUE

What is Education Certification?

What is the Benefit of Completing Maryland PE Certification?

Who is Eligible for PE Certification?

Who is NOT Eligible for PE Certification?

What Role Do I Have in the Certification Process?

What are the Maryland PE Certification Deadlines?

More Information

ATTENTION MORTGAGE LOAN ORIGINATORS and AFFILIATED INSURANCE PRODUCER-MORTGAGE LOAN ORIGINATORS:

THIS MORTGAGE LICENSING UPDATE CONTAINS IMPORTANT INFORMATION ON THE CERTIFICATION PROCESS FOR PRE-LICENSING EDUCATION.

Certification of pre-licensing education can help you avoid having to take more pre-licensing classes and save you time & money!

The Office of the Commissioner of Financial Regulation (Agency) is continuing to work with the National Mortgage Licensing System (NMLS) and the mortgage industry to facilitate the ongoing licensing transition.  As part of the transition to NMLS, ALL Mortgage Loan Originators (MLOs) and Affiliated Insurance Producer-Mortgage Loan Originator (AIP-MLOs or MLOs) must complete pre-licensing education (PE) requirements of the Secure and Fair Enforcement for Mortgage Licensing Act of 2008  (SAFE Act), regardless of when they were licensed.  Specifically, all MLOs must complete 20 hours of NMLS approved PE. 

This Agency is aware that many Maryland MLOs have previously completed Maryland-approved education prior to this transition.  Therefore, this Agency is participating in a certification process developed in conjunction with NMLS to enable MLOs to satisfy PE requirements for the SAFE Act.  The certification process will allow MLOs to use previously completed Maryland approved PE and/or continuing education (CE) to satisfy the SAFE Act requirement. 

The information below explains the process for certification of previously completed Maryland-approved education. 

What is Education Certification?

“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. 

This Agency encourages MLOs who have previously completed Maryland-approved education to participate in the certification process.  This process will facilitate the transition to NMLS and is designed to recognize the prior education completed, rather than force MLOs to start the education process again.  If you DO NOT participate, the Maryland-approved education courses that you previously took will NOT be certified, your NMLS record will NOT be updated and you will not have satisfied the pre-licensing education requirement (which will create a potential enforcement action and will result in you NOT being able to renew at 12/31/10 without re-taking the required education). 

*Please note, certain states may be certifying state testing requirements as well, but Maryland is NOT certifying testing, because Maryland did not require testing prior to the SAFE Act.  All Maryland MLOs must pass the national and Maryland components of the NMLS-approved SAFE mortgage loan originator test.  Please view Mortgage Licensing Update #10  to review the SAFE MLO test deadlines.

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What is the Benefit of Completing Maryland PE Certification?

Once PE has been certified, the licensee’s record will be updated and the MLO will not need to complete PE again, even when applying for subsequent mortgage loan originator licenses.

Another added benefit is the  MLO who completes the certification of Maryland PE will not be required to complete CE during 2010 in preparation for the 2011 Maryland license. However, the licensee will have to complete CE during 2011 in preparation for the 2012 license.

*Please be advised, if you are licensed in multiple States and will be certifying PE in other States, the State’s 20 hour education that is first certified, will count as SAFE compliant education for all other States.

**Also note, although Maryland does not require CE for the renewal of your license for 2011, if you are licensed in multiple States, other States may require completion of CE in 2010 before you may be issued a license for 2011.

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Who is Eligible for PE Certification?

Mortgage loan originator licensees who:

1. have filed and submitted their MU4 to the Agency through the NMLS by September 1, 2010;


2. have successfully completed at least 20 hours of Agency required and approved mortgage education (PE or CE) within the five (5) years prior to the filing (submission to the Agency through NMLS) of the MU4; AND


3. completed that education prior to December 31, 2009.

 Who is NOT Eligible for PE Certification?

MLO licensees and new applicants who, within the five (5) years prior to the filing (submission to the Agency through NMLS) of the MU4, have not completed, or do not have proof of completion of, at least 20 hours of agency approved PE or CE, are not eligible for certification and must complete NMLS approved PE.

The deadline for completion of NMLS approved education (non-certified PE) is:

• Prior to license approval if you are an applicant requesting a new license;
• On or before July 31, 2010 if your Maryland license status is “Approved-Deficient”; or
• On or before December 31, 2010 if you transitioned your Maryland MLO license in 2009 or 2010.
  
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What Role Do I Have in the Certification Process?

1. Agency’s Role – On July 1, 2010, the Agency will begin submitting files containing the names and NMLS IDs of individuals who are eligible to participate in the certification process (See “Who is Eligible for PE Certification?” above) to NMLS.
   
   
2. NMLS’s Role – NMLS will process the files received from the Agency, create an invoice and send an email to the licensee/applicant, notifying the licensee/applicant of his/her requirement to access NMLS and complete the PE certification process. 
     
   
3. Licensee/ Applicant’s Role – Upon receipt of the emailed notice to complete the PE certification process, applicant/licensee must log into his/her NMLS account, view the invoice and pay the $15 processing fee to complete the PE certification process. Payment to complete the certification process MUST be received by September 30, 2010.

Upon your successful payment of the processing fee, your record in NMLS will be updated to reflect that you have satisfied the PE requirements.

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What are the Maryland PE Certification Deadlines?

July 1, 2010  The Agency will begin submitting PE certification files to NMLS.  After a file is submitted, applicants are notified via email by NMLS to log into NMLS and pay the certification processing fee. 

After receipt of licensees/applicants who are eligible to participate in the PE certification process from the Agency, NMLS will notify licensees/applicants who are eligible to have PE certified for Maryland.

July 31, 2010   Maryland licensees with “Approved-Deficient” status must complete PE certification process (or complete 20 hours of NMLS approved pre-licensing education), pass the National and State test components, complete the Federal criminal background check (via NMLS) and complete the State criminal background check (outside NMLS).

September 1, 2010  MU4 filing deadline for all licensees who want to participate in the certification process.

September 5, 2010  The Agency will submit last PE certification file to NMLS.  After the file is submitted, applicants are notified via email by NMLS to log into NMLS and pay the certification processing fee.

September 30, 2010  Maryland licensees with “Approved-Conditional” status and all applicants participating in the PE certification process complete certification process. If certification is not completed by deadline, licensee must complete NMLS approved PE before submitting renewal application for 2011 license.

What if I DO NOT pay the certification Fee due by September 30, 2010?

If you do not pay the certification processing fees on or before September 30, 2010, your Maryland PE education courses will NOT be certified and your NMLS record will NOT be updated.

This puts you at risk for a potential enforcement action and this Agency will NOT allow you to renew in 2010 for the 2011 license until you have completed 20 hours of NMLS approved PE.

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More Information

You can get more detailed instructions including FAQs at the Maryland Office of The Commissioner of Financial Regulation’s website.

In addition, there is general information about the education certification process at the NMLS Resource page.  You may also contact Anne E. Ecker, Director of Licensing at 410-230-6102 or Keisha Whitehall Wolfe, Supervisor of Licensing at 410-230-6362 for more assistance.