Requirements for MLOs 

Federal Registration Requirements for MLOs

Federally chartered or insured institutions and their mortgage loan originators (MLOs) must be registered in NMLS. The chart below provides information pertinent to Federal Registrants’ requirements under the SAFE Act (Regulation G) and LO Compensation Rule.

SAFE Mortgage Licensing Act – Federal Registration of Residential MLOs (Regulation G)

LO Compensation Rule effective January 2014: New rules pertaining to loan originator qualifications that apply to new federally registered loan originators. 

 

Federal MLO Registration Requirements Chart

Requirement

Is Requirement Applicable to Federal Registrants?

Compliance Deadline

Criminal Background Check (CBC)

Yes, all MLOs who are required to be registered must complete CBC through the NMLS. .See the Criminal Background Check page for more details.

An individual is required to authorize a CBC via an initial MU4R filing. A CBC is also required when changing employers.

LO Comp. Rule Effective January 2014:

New registrants must meet the same felony standards as state-licensed MLOs (no felony within the past 7 years; no felony at any time that involves fraud, dishonesty, a breach of trust, or money laundering.

Education:

Pre-Licensure (PE)

& Continuing Education (CE)

No, the SAFE Act does not require an individual to take NMLS Approved PE/CE in order to be actively registered.

N/A

LO Comp. Rule Effective January 2014:

Periodic training that applies to an MLO's loan origination activities must be provided by the employing institution.

Testing

No, the SAFE Act does not require an individual to take or pass the SAFE Tests in order to be actively registered.

N/A

Financial Responsibility (Credit Report)

LO Comp. Rule Effective January 2014:

Employing institutions must obtain a credit report for new registrants outside of NMLS to use in determining financial responsibility. New registrants will be required to meet financial responsibility standards and comply with the same felony restrictions that apply to state-licensed MLOs.