The New York State Banking Department announced on Monday that 1,800 mortgage loan origination firms have met new licensing mandates from New York State as well as the federal Secure and Fair Enforcement for Mortgage Licensing (SAFE) Act of 2008.
Under both pieces of legislation, mortgage firms were required to meet certain professional criteria and be registered with the Nationwide Mortgage Licensing System and Registry (NMLS) by July 31, 2010, in order to continue doing business in New York State.
“New Yorkers can now rest assured when they meet with the MLOs sponsored by mortgage bankers and mortgage brokers that these are qualified, licensed professionals who have been subject to background checks and educated in mortgage law,” said Richard H. Neiman, Superintendent of Banks for New York State. “What’s more – consumers now have resources at their fingertips to confirm for themselves that these individuals are properly licensed to originate mortgages.”
The state of New York now requires mortgage loan originators to pass criminal and financial background checks, complete 20 hours of pre-license educational course work, pass various exams on federal and state law, be covered by a surety bond, and be employed by a licensed mortgage banker, mortgage broker or non-bank lender.
“New York was one of the first states to make MLOs – and not just the mortgage brokers and bankers that they worked for – accountable to consumers and regulators for their actions and expertise as professionals. We began back in 2006, with the passage of legislation which mandated the registration of MLOs with the Banking Department. Today, with the SAFE Act, we have a set of nationwide minimum standards for the mortgage industry and a verification system that’s easily accessible to both consumers and regulators,” said Superintendent Neiman.
