www.lasvegasmtg.com Report: Its New Years do you still have a Nevada licensed Loan Officer as a partner?
www.lasvegasmtg.com Report: Its New Years do you still have a licensed Loan Officer as a business partner? The Clock has struck twelve and the whole world has welcomed the New Year with hopes for a better year. Nevada also brought to life the requirement for transition for all Mortgage Loan Officers to complete the SAFE ACT and complete the registration with the National Mortgage Licensing System by December 31, 2010 at the stroke of midnight. All 50 states have enacted this transition to the National Registry with some states allowing an extension till March 31st, 2011 if they had completed all of the requirements. Nevada has allowed the extension but will require all state and National testing be completed by March, 31st. During the time from December to March a Loan Officer cannot perform any work or be subject to fine.
On the the Nevada Mortgage Lending Division web site there are currently 2178 active Loan Officers on record as of December 30th, 2010. The National Mortgage Licensing System web site shows 1578 Mortgage Loan Officers have completed the transition. This means 600 loan officers are no longer allowed to do business as a Mortgage Loan Officer. This is the first year that Nevada implement the Nationwide Mortgage Licensing System Standards and all components must be completed by 12/31/2010 or the Nevada State license will be revoked.
Nationally the statistic that I have read is that only 72% applicants have been able to pass the written test. With more costs involved, for State Testing Continuing Education Classes, State Fees, National Testing Fees, FBI background checks, Finger Printing, Classes for study materials some Mortgage Loan Officers have just thrown in the towel.
What effect will this have on transactions in escrows with Mortgage Loan Officers that have not completed the transition to National registry?
1. The state license will be suspended effective 1/1/11. All Mortgage Offices are required to terminate license who have n ot completed the NMLS Safe Act by 1/1/11.
2. Mortgage Companies will still be allowed to pay Loan Officers on commissions on work done prior to December 31st, 2010.
3. Unlicensed Loan Officers cannot perform any activity as a Loan Officer or be subject to a fine of $50,000 from the Nevada Mortgage Lending Division.
4. If a Loan Officer does not voluntarily surrender the license to the Nevada MLD by December 31st, 2010 then Nevada MLD will revoke the license. This will make renewing the licensing more difficult for the applicant.
5. While commisions to Loan Officers can be still be paid out to unlicensed Loan Officers this does not allow them to do any work on the loan after December 31st and will require a NMLS licensed Loan Officer to complete the loan process.
If you have any loans in escrow, you may need to find out if your loan officer has successfully registered and passed the Safe Act. You can check here at the National Mortgage Consumer Access.