OKLAHOMA Mortage Broker and Originator License Renewal FAQ's
What is the due date for license renewal, and what needs to be turned in?
Answer: The license renewal notice, along with a fee of $100 for mortgage brokers, $50 for mortgage broker branches, and $50 for mortgage loan originators needs to be turned in by December 1st, and attached to the mortgage broker and mortgage loan originator renewal notice (not the branches) also should be a copy of the completion certificate(s) for Continuing Ed credits completed.
NOTE: There is a grace period between December 1 and December 31, but licensees are considered 'delinquent' by December 15, and will be mailed a 'delinquent notice' --- mortgage brokers who have not renewed by December 31 will be fined $25 a day from January 1 to January 31 and are not supposed to conduct any broker business during that time, as their licenses are considered to be suspended --- brokers who have not renewed by February 1 will have their licenses expired, and will need to re-apply all over again in order to conduct business as a broker.
**Loan Originators who do not get their licenses renewed in a timely manner are not fined or penalized, however, the re-issuance of their license can become a very slow, painful process when it is procrastinated into late December --- the agency is very busy at this time and the licensees may have a very slow turnaround time on getting their new license for 2008.** This same problem applies to late Mortgage Brokers also, in addition to the fines.
What happens to an individual (natural person) after July 31, 2007, who is currently licensed as a mortgage originator? In order to continue in business as a licensed mortgage originator, that individual would have to form a business entity, e.g. incorporate, meet the net worth/surety bond requirements and have his/her application approved by the October 30 renewal date. Another option would be for the individual to go to work for a licensed entity.
What topics and how many credits of each should be completed?
Answer: For both brokers and loan originators, it is the same:
1 credit -ECOA, Fair Lending OR HMDA --- (just one of these) --- 1-hour equivalent
1 credit -RESPA (Real Estate Settlement Procedures Act) --- same
1 credit -TILA (Truth In Lending Act) --- same
4 credits -Ethics (pertaining to broker and loan originatoractivities) - 4 hours
9 credits - General topics (pertaining to broker and loan originator activities and business)
TOTAL: 16 credits / hours --- completion certificates must reflect this many and types of credits
What if I take:
4-ECOA
4-RESPA
3-TILA
4-Ethics
1-General -----?
Answer: The credits above add up to 16, and the core requirements are met - so any extra core requirements are applied to the "general" category --- so all is well J
Repeat classes: Some of the language has me confused on courses. Can I take the same class this year that I took last year to earn my credits? ie, So-and-So Mortgage University 2 years in a row? Answer: - Yes it is generally OK to take the same classes, because the education providers have all changed the content of the courses to some extent. If you have ay doubts, check with meJ
2007 new licensee: If a Broker has a new originator that received their initial license this year, do they have Continuing Ed requirements this year or is it just next year.
Answer: -Yes, new loan originators licensed this year (up until late October, when license renewal begins) have an obligation to complete the same number and type of credits as the mortgage brokers, with a deadline of December 1, 2007. --- **Any Loan Originator who completed CE after July 1, 2006 can use those credits for 2007-2008 license renewal.**
FAQ: 2007 new licensee: If a Broker has a new originator that received their initial license this year, do they have Continuing Ed requirements this year or is it just next year.
Answer: -Yes, new loan originators licensed this year (up until late October, when license renewal begins) have an obligation to complete the same number and type of credits as the mortgage brokers, with a deadline of December 1, 2007. --- **Any Loan Originator who completed CE after July 1, 2006 can use those credits for 2007-2008 license renewal.**
If this answer is yes, then that opens up another question. If a Broker is considering hiring another originator that will probably start in Oct. so would that originator still have CE requirements.
Answer: --- The cutoff date, (when we begin to issue 2008 instead of 2007 licenses, is decided each year based on what day this Dept. sends out the license renewal notices --- it needs to be a weekday (probably will be one of the days in the week of Oct. 15-19) ----
Since we have some 5,000 licensees on average, it is hard to say exactly which day until we are closer --- Licensing decides this in October.
-------*So, if a new loan originator (or broker) got licensed any day before the cutoff date, that person would be obligated to complete the CE and respond to a license renewal notice which would automatically be sent out to his/her broker.
-------*However, if the person is able to wait until after the cutoff date to become fully licensed, then he/she would be issued a 2008 license, with no obligation to complete CE until the fall of 2008. (we actually advise people to wait if they can, starting Oct. 1 or so)
-- Under any one mortgage broker license, as in MB000645, only one person needs to take the CE --- and that person has to be an officer of the company.
Then, ALL licensed mortgage loan originators (who work for the brokers, who are active status) also need to take their CE for license renewal.
Each licensee is responsible to get their own CE's, and get their own certificates of completion, and present copies of those certificates along with their license renewal notice to this Dept. by Dec. 1st. There is a grace period from Dec. 1st to Dec. 31st, but they are considered late, although there is no fine (yet)
--- After Dec. 31st, licensed mortgage brokers who have not yet complied with all license renewal requirements are fined $25 per day from January 1 to Jan. 31. After Jan. 31, on Feb. 1, mortgage broker licenses are automatically expired. But loan originators are not fined - although they, too, are expired on Feb 1 if we have not received anything from them by then.
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