Ohio Mortgage Loan Act

Ohio Mortgage Loan Act

 

The Ohio Mortgage Loan Act, otherwise known as the SAFE Mortgage Licensing Act, works to protect consumers by setting licensure standards for individuals seeking to serve as loan originators. Loan originators must by Dec. 31, 2010 meet the various state standards in order to be licensed. These requirements include educational criteria, as well as the passage of a state-endorsed test.

Education Requirements

• Under the mortgage loan act, loan originators must complete 20 hours of NMLS-approved prelicense certification. These include a minimum of four hours of Ohio law, three hours of federal law, three hours of ethics and two hours focused on non-traditional mortgages.

Test

• All loan originators must pass the SAFE Mortgage Loan Originator Test. This actually consists of two exams, including a state exam and a national exam, each taken separately.

Registration

• All licensed loan originators must register with the Nationwide Mortgage Licensing Registry. Loan originators also must submit an application to the Ohio Division of Financial Institutions. The division will investigate to determine if the applicant met all statutory requirements. Registration must be renewed annually. If the individual moves offices, she must obtain a new certificate for registration prior to starting business at the new facility.

Compliance

• Under the mortgage loan law, all registrants are responsible for complying with state law. Periodically, the division will randomly examine registrants for compliance with state and federal lending laws. The division has the power to issue subpoenas while conducting examinations and investigations.

Alternatives

• If you have taken the 24-hour prelicensing that was required before the law, you are not required to take the NMLS test. If you haven't met the 24-hour educational requirement, but have taken at least 20 hours of Ohio approved continuing education, you are not required to take the 20 hour prelicensing certification course.

Retake Options

• If you have passed the Ohio loan officer test on or after Jan. 1, 2004, you won't be required to take the Ohio state-specific test. NMLS will accept certification from the Ohio DFUI verifying that you meet this criteria.

If Licensed Without Test

• Under the Ohio mortgage loan act, if you have not taken and passed the Ohio LO or OM test on or after Jan. 1, 2004, you must retake the Ohio licensing test currently offered by the PSI. You must do this regardless of how long you have held your license