The Nationwide Mortgage Licensing System & Registry (NMLS) was created to form a central repository of license and disciplinary information on mortgage companies and mortgage loan originators. The SAFE Act requires all state-licensed companies and individual mortgage loan originators working for them to have an account and unique identifier number with NMLS.

Yes. The Real Estate Institute is an NMLS-Approved Course Provider, #1400102 We offer NMLS-approved pre-license and continuing education programs. We also offer a SAFE test preparation course to prepare loan originators for the mandatory National exam.

The Secure and Fair Enforcement in Mortgage Licensing Act was signed into law on June 30, 2008 as part of the Housing and Economic Recovery Act (HERA). The intent of the SAFE Act is to increase uniformity in licensing requirements, reduce regulatory burden, enhance consumer protection, and reduce fraud in the mortgage industry.

The SAFE Act applies to all companies and mortgage loan originators. However, only those companies that are state-licensed and the individuals originating for them must go through the licensing process.

The SAFE Act, as implemented by rule, defines an "individual loan originator" as an individual who, for compensation or other monetary gain, performs loan origination activities, such as

• Taking an application.
• Arranging a credit transaction.
• Assisting a consumer in applying for credit. A loan originator assists a consumer in obtaining or applying for credit by advising on particular credit terms that are or may be available to the consumer based on the consumer's financial characteristics.
• Offering or negotiating credit terms. Credit terms include rates, fees and other costs. Credit terms are selected based on the consumer's financial characteristics when those terms are selected based on any factors that may influence a credit decision, such as debts, income, assets or credit history.
• Making an extension of credit.
• Referring a consumer to a loan originator or creditor. Referring is an activity included under each of the activities of offering, arranging, or assisting a consumer in obtaining or applying to obtain an extension of credit.
• Advertising or communicating to the public that you can or will perform any loan origination services.

• Performing only administrative or clerical tasks on behalf of a loan originator or creditor, such as processing or underwriting, provided you perform those services for only one organization at a time.
• Delivering an application to the consumer for them to fill out and not discussing terms, etc.
• Providing financing to a buyer pursuant to a sale of your own residence.
• Performing only real estate brokerage services as a licensed real estate professional as long as you are not being compensated by a lender for offering products or referrals.
• Providing third-party advisory services, such as an attorney, accountant, financial advisor or someone assisting an immediate family member, as long as you are not being compensated for the actual loan origination service or for referring clients to a specific creditor or broker.
• Other assorted situations, such as employees of manufactured home builders in certain cases.

Applicants are required to:

• Complete at least 20 hours of pre-license course education (may be more in some states).
• Pass a standardized National examination.
• Complete at least 8 hours of continuing education course curriculum each year (may be more in some states).

You can find out more about the education requirements in each state by clicking here.

If you work for an insured depository institution regulated by OCC, FDIC, FED and NCUA or the Farm Credit Administration you are not required to take the NMLS Approved pre-license or continuing education courses or examinations.

You still must receive education commensurate with your origination involvement and the relevant NMLS-approved pre-license and continuing education courses can satisfy this requirement. Additionally, it would be a good idea if you have ever considered changing employment and going to work for a state-licensed lender or broker.

Please see this document at the NMLS website.

Individuals must undergo a criminal background check as well as a character and fitness check, which includes a credit check. Further information can be found at the NMLS website.

Before applying for state licensure.

You will find this information at the NMLS Website.

All mortgage loan originators must have an account with the NMLS. This creates a centralized national database of disciplinary information for individuals originating residential loans. Registration is the only SAFE Act requirement for mortgage loan originators who are employees of a federally-regulated depository institution or its first-tier subsidiary (as described above).

For all other mortgage loan originators, including those working for Mortgage Brokers and Mortgage Lenders, the SAFE Act requires state licensure for each state where the individual originates loans. The licensure process will be facilitated through the NMLS and its systems. State-licensed mortgage loan originators are subject to the education and testing requirements of the SAFE Act.

While the states are the entities that issue mortgage loan originator licenses, you won’t be able to apply for your license in a given state until you’ve satisfied all of its requirements for licensure (education, testing, background checks, etc.)

Requirements for individual state licensure are dictated by each state's mortgage licensing law. However, certain requirements exist for all states, and the licensing process will be standardized and facilitated through the NMLS.

Requirements include:

• Background checks
• Testing
• Pre-license education
• Continuing education

Please check the NMLS website for updated information about individual state requirements.

Yes, in addition to individual mortgage loan originators, a mortgage brokerage or mortgage lending company will create a record in the NMLS system. Using this "One Record Concept", NMLS allows for the creation and maintenance of a single record for each company, regardless of the number of jurisdictions in which it is licensed.

This single record may be used to apply for, maintain, renew, or surrender licenses in all jurisdictions participating in NMLS. Companies will also be able to create and maintain a single record for each branch, control person or mortgage loan originator.

The use of any of these forms is governed by the regulations of the state in which you are seeking licensure, not by NMLS.

Additional information is available at the NMLS Website.

Detailed instructions are provided at the NMLS Website. It is important that you coordinate your use of this system with your employer.

Yes. Mortgage loan originators who are employees of a depository institution (a bank that takes deposits) regulated by the FDIC, OCC, Federal Reserve, CFPB, NCUA or Farm Credit Administration are exempt from the state licensure, and testing requirements. However, they must become registered MLOs through NMLS and receive education commensurate with their involvement in loan origination. Although not specifically required to take NMLS-approved courses, those can certainly satisfy the requirements of the Act.

The NMLS website is a valuable resource: http://Mortgage.NationwideLicensingSystem.org

Our customer representatives at the Real Estate Institute are available to help.
Please call us with your questions: (800) 995-1700.

The NMLS Call Center is also available: (855) NMLS-123 (1-855-665-7123).

All individuals applying for a state-licensed mortgage loan originator license must pass a National exam. This exam is scheduled and taken through Prometric.  Prometric is the vendor the NMLS uses to administer the exam.

Real Estate Institute offers a test preparation program specifically designed to help mortgage loan originators prepare for the National exam. Our program includes a study guide, online practice exam and online score reports.

Click here for more information about our program.

The national component contains 125 questions. Of those, 115 are scored and 10 are excluded from your score because they are being evaluated for use in future exams.

All questions are multiple-choice.

Passing score is 75%.

You are permitted to retake the exam, but there are mandatory waiting periods between each attempt.

You are permitted to retake a test 2 consecutive times (for a total of three attempts) with each retake occurring at least 30 days after the preceding test.

After failing 3 consecutive tests, you must wait at least 6 months before taking the test again.

You should begin studying to pass the National exam. We have created a PREP-to-PASS program that includes our comprehensive study guide and online practice tests. Click here for more information about our program.

Information regarding the National Exam, including how to schedule the exam, can be found at the NMLS website.

The online NMLS Resource Center provides detailed information about the tests including what will be covered on the test, the number of questions, how each test is weighted and corresponding reference lists.

You are permitted to use a basic calculator, which the testing center will provide for you. You will not be allowed to bring your own calculator (or any other device) into the exam. Although the test may include math questions, you will be provided enough information to solve the problem without the use of a financial calculator.