Components of the Mortgage Loan Originator Licensing Act

The Mortgage Loan Originator Licensing Act (MLOLA) was written to bring Michigan into compliance with the Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (“SAFE Act”).  Failure to comply with the minimum standards set under the SAFE Act would have resulted in the Department of Housing and Urban Development establishing standards to license and regulate loan originators in Michigan.To meet SAFE Act standards, the MLOLA includes the following:

• Licensing of state mortgage loan originators State licensing exemption for mortgage loan originators of depository institutions and their subsidiaries1 Electronic application and renewal of mortgage loan originators through the Nationwide Mortgage Licensing System & Registry (NMLS&R) Fingerprints submitted to the NMLS&R FBI background history checks with results returned to the NMLS&R for State review Credit report checks for each loan originator 20 hours of pre-licensing education approved by the NMLS&R 8 hours of continuing education approved by the NMLS&R NMLS&R mortgage loan originator national and state tests, each required to be passed with a minimum score of 75% Surety bond for each mortgage loan originator based on volume of loans closed Mortgage Call report Reporting of enforcement actions Providing public access to mortgage loan originator information through the NMLS&R Providing consumer complaint processing through the NMLS&R
  
  
• Establishing protocols for use of a unique identifier through the NMLS&R

Individuals who are employed by and are originating mortgage loans for depository institutions and their subsidiaries are required to register with the NMLS&R, and are not required to be State licensed.

Currently registered individuals and those intending to originate loans on or after July 31, 2010, must become licensed under the new MLOLA.

Mortgage Loan Originator Legislation 

The new Mortgage Loan Originator Licensing Act, 2009 PA 75 (Senate Bill 462) requirements are effective July 31, 2010.  Three additional Public Acts, 76 (Senate Bill 463), 77 (Senate Bill 464), and 78 (Senate Bill 465), amend the Mortgage Brokers, Lenders, and Servicers Act, 1987 PA 173, the Secondary Mortgage Loan Act, 1981 PA 125, and the Consumer Financial Services Act, 1988 PA 161 effective July 31, 2010 to align with the new Mortgage Loan Originator Licensing Act.  These Public Acts can be viewed at the Michigan Legislature website at: http://www.legislature.mi.gov/(S(vgohdsjedh21bgveb2akie3n))/mileg.aspx?page=MclPASearch