The Department of Real Estate has put a December31, 2010-deadline for residential MLO registrants to be submitted through the National Mortgage License System and Registry (NMLS&R) to be issued a license endorsement by January 1, 2011. For more information, please go to www.dre.ca.gov.

January 1, 2011-deadline for licensees who perform residential mortgage loan originator MLO activities to obtain an MLO license endorsement.

1. Successfully complete the National and California State specific examination. The National component is currently available for all applicants.
2. Submit a MLO licensee endorsement application after DRE officially joins the NMLS&R in March 2010.
3. Submit fingerprints to the NMLS&R during the license endorsement application process.
4. Satisfy the 20 hour pre-license education requirement.
5. Submit authorization for the NMLS&R to obtain a credit report.

A MLO license endorsement will carry a nationwide identification number known as a “unique identifier” which will be assigned by the NMLS&R. The term and license identification number of the “base” real estate license will not change. Real estate licensees will continue to be responsible for filing the necessary renewal and record update requirements to maintain their four year real estate license separate from the MLO Endorsement.

Pre-Licensing Education Requirements

The Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (SAFE Act) requires that state-licensed mortgage loan originators (MLOs) complete pre-licensure and annual continuing education. In order to meet pre-licensure continuing education requirements state-licensed MLOs must complete 20 hours of NMLS approved education which include the following:

   a. 3 hours of Federal law and regulations;
   b. 3 hours of ethics, this shall include instruction on fraud, consumer protection, and fair lending issues;
   c. 2 hours of training related to lending standards for the nontraditional mortgage product marketplace; and
   d. 12 hours of undefined instruction on mortgage origination.

State Examination Requirements

State-licensed loan originators pass a qualified written test developed by NMLS and administered by an approved test provider. As required by the SAFE Act, the test is designed to adequately measure an individual's knowledge and comprehension in appropriate areas, to include:

1. Ethics;
2. Federal law and regulation pertaining to mortgage origination;
3. State law and regulation pertaining to mortgage origination;
4. Federal and State law and regulation, including instruction on fraud, consumer protection, the  nontraditional mortgage marketplace, and fair lending issues.

The SAFE Test includes two components, a National Component and a Unique California State Component. A MLO license endorsement applicant wishing to satisfy the SAFE test requirements for licensure, must pass each component with a test score of not less than 75 percent correct answers to questions. MLO license applicants wishing to seek licensure in more than one state or jurisdiction, must pass the unique State Component test in each of those states.

Renewal and Continuing Education Requirements

For annual continuing education, the SAFE Act requires state-licensed MLOs to complete:

   a. 3 hours of Federal law and regulations;
   b. 2 hours of ethics that shall include instruction on fraud, consumer protection, and fair lending issues;
   c. 2 hours of training related to lending standards for the nontraditional mortgage product market; and
   d. 1 hour of undefined instruction on mortgage origination.

Initial MLO license endorsements which are approved for issuance in 2010 will expire on December 31, 2011. Thereafter, MLO endorsements will be issued annually and expire December 31st each year. The renewal requirements for a MLO license endorsement will include a renewal request filed electronically through the NMLS&R, a renewal fee, and filing evidence of completion of 8 hours of continuing education (CE), completed during 2011. CE must be taken through sponsors approved through the NMLS&R. The continuing education completed for the purpose of renewing a MLO license endorsement cannot be used to satisfy real estate license continuing education requirements. The renewal application filing period will be from November 1, 2011 through December 31, 2011. Currently approved CE courses are not available.

Our Online Pre-Licensing Courses & Exam Preparation

We have teamed up with Cape School to give you an affordable and convenient way to learn and pass the MLO exam!

Our 20 Hour SAFE Comprehensive Principles of Mortgage Lending Online Course is designed to allow students the convenience of studying at home or office, while having the opportunity to communicate with an instructor and other students who are progressing through the course at the same time. The course has a start date and an end date, study at the hours that fit your schedule. The course is divided into lessons, in topic order, as recommended by the NMLS. Features include: Chat, Message Boards, Audio/Visual Lesson Reviews to help retain information learned in each lesson, and interactive exercises developed to reinforce important material. Each lesson must be completed before proceeding to the next lesson. The student must complete all quizzes and exercises to complete the course, then pass a final exam with a score of 70% or better. System requirements: - A browser with Internet access (High Speed Recommended) - Speakers for the audio portions of the course - Adobe Flash Player 8 or higher - Adobe Acrobat Reader 8 or higher.

Principles of Mortgage Lending Textbook - This book was designed to meet the core criteria established by the SAFE Act for national mortgage loan originators.

California Mortgage Law Study Guide Textbook - This book was designed to meet the CA state specific criteria established by the SAFE Act for mortgage loan originators needing to take the CA State component with the NMLS.

NMLS TesTaker - Online Exam Simulator - Cape’s NMLS TesTaker is an online exam simulator designed to help you pass your NMLS examination the first time! The TesTaker generates 100 question tests with the same ratio of questions/topics found on the NMLS exam. Once you have completed a test, you will receive your results showing pass percentages on each of the four topics. The topics are:
- Federal Laws (35%)
- General Knowledge (25%)
- MLO Activities (25%)
- Ethics (15%)

California Mortgage Law Exam Prep Online Course - This California Mortgage Law Exam Preparation Online course is based on The California Mortgage Law Study Guide Textbook. It is designed to meet the CA state specific criteria established by the SAFE Act for national mortgage loan originators needing to take the CA State test with NMLS. You may repeat any missed questions, or browse questions by NMLS topic. After answering each question, you will receive an in-depth explanation for the answer to the question.

National Mortgage Law Exam Prep Online Course - This Mortgage Law Exam Preparation Online course is based on The Principles of Mortgage Lending textbook. The course reviews the core prelicense educational requirements for mortgage loan originators as defined by the Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (SAFE Act). Upon successful completion of this course you will have a strong understanding of the mortgage loan originator industry and the laws that govern it. This is an exam preparation tool only and is not for credit.

*Plus a shipping and handling charge of $7-$10

To register or find out more information about our MLO courses and exam preparation materials, please click here now!