Mortgage Licensing Update - Office of the Commissioner of Financial Regulation - E-News from the Department of Labor, Licensing and Regulation
Volume XIV E-news from Maryland Department of Labor, Licensing and Regulation May 2010

The Office of the Commissioner has prepared a list of "Frequently Asked Questions" (FAQs) and answers regarding the Certification Process for Prelicensing Education in Maryland, SAFE MLO Test, and Continuing Education. We hope that you will find the information below helpful in completing the NMLS transition over the coming months. Please review these FAQs at your convenience. Additional information is available in the April 2010 issue of the Mortgage Licensing Update.

Pre-Licensing Education FAQs

  1. Question - What is pre-licensing education (PE)?
  2. Question - Prior to applying for (or transitioning) a Maryland MLO license, I took 20 hours of SAFE PE in another state, do I have to take SAFE PE again?

Pre-Licensing Education Certification FAQs

  1. Question - What is certification?
  2. Question - Who is eligible for PE certification in Maryland?
  3. Question - Who is NOT eligible for PE certification in Maryland?
  4. Question - What role do I have in the certification process?
  5. Question - What is the benefit of completing Maryland PE certification?
  6. Question - I have successfully completed the pre-licensure and/or annual continuing education requirements, do I have to provide the Agency with any documentation?
  7. Question - How will I know when the Agency submits the certification file to NMLS?
  8. Question - What are the important PE certification deadlines in Maryland?
  9. Question - What happens if I have not paid the certification processing fees by the September 30, 2010 deadline?
  10. Question - I am also licensed as an MLO in ABC State and have satisfied its mortgage education requirements. I understand ABC's Department of Mortgage Regulation will be participating in the certification process too. How will this duplicate certification processing be handled?
  11. Question - I would like to apply immediately for a license in XYZ State. Is there any process I can use before Maryland processes my certification files to demonstrate to XYZ State that I have completed education requirements?

SAFE Mortgage Loan Originator Test FAQs

  1. Question - What is the SAFE Mortgage Loan Originator Test?
  2. Question - Since I have successfully passed the National component of the MLO Test, do I still need to take and pass the Maryland component of the SAFE MLO Test?
  3. Question - I am licensed in another state and I have successfully completed certification of the test in that state. Do I still need to take a test for the Maryland MLO license?
  4. Question - Before NMLS, I passed a test when I got my Maryland MLO license. Do I still have to take the Maryland component of the SAFE MLO test or does the Maryland test that I took qualify for certification?

Continuing Education FAQs

  1. Question - What is continuing education (CE)?
  2. Question - I am a Maryland mortgage loan originator licensee, what continuing education (CE) requirements will I have during 2010?
  3. Question - I am a Maryland mortgage lender licensee, what continuing education (CE) requirements will I have during 2010?
  4. Question - What continuing education (CE) requirements will I have during 2011? (Please note these are CE requirements that must be taken in 2011 as a condition of the licensee's eligibility for the 2012 MLO, ML or AIP-MLO.)

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Pre-Licensing Education FAQs

1. Question - What is pre-licensing education (PE)?
Answer - The Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (SAFE Act) requires at least 20 hours of NMLS approved pre-licensing education to be completed prior to the issuance of the mortgage loan originator license. This education need only be completed or certified once, regardless of the number of states in which one is licensed. Each state may require more than the designated 20 hours or require a certain number of hours with state content. Maryland has required PE for Mortgage Loan Originators (MLOs) and Affiliated Insurance Producer-Mortgage Loan Originators (AIP-MLOs or MLOs) which must be satisfied.

2. Question - Prior to applying for (or transitioning) a Maryland MLO license, I took 20 hours of SAFE PE in another state, do I have to take SAFE PE again?
Answer - No. If you have taken 20 hours of SAFE PE in any state, it satisfies the SAFE PE requirement for all states. However, in addition to the SAFE requirements, some states may require additional hours of State specific education.

Pre-Licensing Education Certification FAQs
1. Question - What is certification?
Answer - "Certification" is the process by which state agencies certify that licensed MLOs have successfully completed state education and/or state testing requirements which also satisfy the SAFE Act's PE and test requirements. Please note that Maryland is certifying PE, but NOT testing requirements. Maryland did not require testing before the SAFE Act. For general information regarding certification, see the Certification Page on the NMLS Resource Center.

2. Question - Who is eligible for PE certification in Maryland?
Answer - Mortgage loan originator licensees who:
(i) have filed and submitted their MU4 to the Agency through the NMLS by September 1, 2010;
(ii) 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
(iii) that education was completed prior to December 31, 2009.

3. Question - Who is NOT eligible for PE certification in Maryland?
Answer - 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:

  1. Prior to license approval if you are an applicant requesting a new license;
  2. On or before July 31, 2010 if your Maryland license status is "Approved-Deficient"; or
  3. On or before December 31, 2010 if you transitioned your Maryland MLO license in 2009 or 2010.

4. Question - What role do I have in the certification process?
Answer -

  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 met the PE requirements.

5. Question - What is the benefit of completing Maryland PE certification?
Answer - 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.

The MLO who completes the certification of Maryland PE will not be required to complete CE at the 2010 renewal period 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 renewal in 2010, if you are licensed in multiple states, other states may require completion of CE in 2010.

6. Question - I have successfully completed the pre-licensure and/or annual continuing education requirements, do I have to provide the Agency with any documentation?
Answer - Maybe. Generally, the Agency has maintained records of your PE and CE education courses and you do not need to do anything further until you are notified by NMLS, via email, that the invoice for payment of your certification processing fees is available.

However, the Agency may not have a record of all the education you completed, and you will be required to either complete the SAFE NMLS approved pre-licensing education or submit proof (completion certificates) of having completed at least 20 hours of Maryland approved education within the five (5) years prior to the submission of the MU4 filing if:

(i) You used the "experience" criteria (submitted a resume) to satisfy the license requirement when you were initially licensed;
(ii) You submitted a renewal application on the Maryland website on or before June 30, 2009;
(iii) On that renewal application, you disclosed that you had been engaged in the mortgage lending business for at least ten (10) years; and
(iv) On that renewal application, you disclosed that you had completed less than 20 hours of continuing education.

7. Question - How will I know when the Agency submits the certification file to NMLS?
Answer - This Agency intends to submit its first certification file to NMLS on or about July 1, 2010 and will continue submitting certification files until September 5, 2010. Soon after NMLS processes the file, you will receive an email notifying you to access NMLS and pay the PE certification processing fee.

8. Question - What are the important PE certification deadlines in Maryland?
Answer -

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

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 a renewal application for the 2011 license.

9. Question - What happens if I have not paid the certification processing fees by the September 30, 2010 deadline?
Answer - If you have not paid the certification processing fees by September 30, 2010, your state 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.

10. Question - I am also licensed as an MLO in ABC State and have satisfied its mortgage education requirements. I understand ABC's Department of Mortgage Regulation will be participating in the certification process too. How will this duplicate certification processing be handled?
Answer - Once you go into NMLS and pay the processing fee for a state's certification of your education requirements, no other state's education certification file can be processed. Only one state's certified education will be reflected in NMLS. So, if ABC's Department of Mortgage Regulation submits its certification files before Maryland does, and you pay to have those records processed, your NMLS Course Completion Record will reflect that you satisfied SAFE requirements through education certified by ABC's Department of Mortgage Regulation.

11. Question - I would like to apply immediately for a license in XYZ State. Is there any process I can use before Maryland processes my certification files to demonstrate to XYZ State that I have completed education requirements?
Answer - In general, there are no interim steps in the certification process which will allow you to use your existing education courses to satisfy another state's education requirements prior to the complete processing of certification files. However, please check with the state agencies involved to learn if there are any interim steps they can take to help you with licensing.

SAFE Mortgage Loan Originator Test FAQs

1. Question - What is the SAFE Mortgage Loan Originator Test?
Answer - The SAFE Act requires licensees to pass both the national and state components of the SAFE MLO Test. The national component, once passed, satisfies all States. However, the applicant must also pass the Maryland state component to satisfy the Maryland MLO licensing requirements. Maryland is NOT certifying testing, since Maryland did not require a test before the passage of the SAFE Act. For more detailed information, and important test completion deadlines, please see Mortgage Licensing Update #10.

2. Question - Since I have successfully passed the National component of the MLO Test, do I still need to take and pass the Maryland component of the SAFE MLO Test?
Answer - Yes. All Maryland MLO applicants/licensees must take and pass both the National and Maryland state component of the SAFE MLO test.

3. Question - I am licensed in another state and I have successfully completed certification of the test in that state. Do I still need to take a test for the Maryland MLO license?
Answer - Yes. Prior to the implementation of the SAFE Act, Maryland did not have a testing requirement and is not now participating in testing certification. Therefore, all Maryland MLOs applicants/ licensees must take and pass both the National and Maryland state component of the SAFE MLO test.

4. Question - Before NMLS, I passed a test when I got my Maryland MLO license. Do I still have to take the Maryland component of the SAFE MLO test or does the Maryland test that I took qualify for certification?
Answer - Certain states may be certifying state testing requirements as well as education, but Maryland CANNOT certify testing because Maryland did not previously have a State test. The pre-NMLS test that you may have taken in connection with educational courses does not meet the requirements for certification. For example, it was not administered by an independent third party, but rather by the instructor who provided the related education. 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 and other information. 

Continuing Education FAQs

1. Question - What is continuing education (CE)?
Answer - Continuing Education is the education required to be completed prior to the renewal of the ML, MLO, and AIP-MLO licenses. SAFE requires 8 hours of continuing education to be completed each year prior to renewal. Some states may require more than the designated 8 hours or require a certain number of hours with state content. Please see Maryland's required CE for MLOs/AIP-MLOs for details.

Please see Maryland's required CE for Mortgage Lenders/Brokers for details.

2. Question - I am a Maryland mortgage loan originator licensee, what continuing education (CE) requirements will I have during 2010?
Answer - If you have a Maryland MLO license, this Agency will NOT require the completion of CE in 2010 as a condition of your eligibility for the 2011 Maryland MLO license. However, if you are licensed in multiple states, other states may require that you complete CE in 2010 as a condition of your eligibility for the 2011 renewal of that State's MLO license.

3. Question - I am a Maryland mortgage lender licensee, what continuing education (CE) requirements will I have during 2010?
Answer - Prior to the renewal of a Maryland Mortgage Lender license in 2010 for the 2011 licensing period, the licensee's covered employees (i.e., a manager of a location licensed by the Commissioner of Financial Regulation) must complete at least eight (8) hours of continuing education. In some cases, that manager may also be an MLO, but the CE must be completed so that the mortgage lender licensee is compliant.

4. Question - What continuing education (CE) requirements will I have during 2011? (Please note these are CE requirements that must be taken in 2011 as a condition of the licensee's eligibility for the 2012 MLO, ML or AIP-MLO.)
Answer - Approved continuing education courses may be found on the NMLS Resource Center. All Maryland AIP-MLOs, MLOs and MLs must take 8 hours CE in 2011 for the 2012 license. The CE standards are prescribed by Md. Code Ann., Financial Institutions Sec. 11-612 and the SAFE Mortgage Licensing Act and include:

  1. 3 hours of federal law and regulations;
  2. 2 hours of ethics that shall include instruction on fraud, consumer protection, and fair lending issues;
  3. 2 hours of training related to lending standards for the nontraditional mortgage product market; and
  4. 1 hour of Maryland instruction on mortgage-related laws.

There is general information about the education certification process and testing 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.

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Department of Labor, Licensing and Regulation Office of Financial Regulation
500 N. Calvert Street - Baltimore, Maryland 21202 - (410) 230-6155
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