Last year Senate Bill 1028 was passed and signed into law (ARS 6-901 et seq.) It requires all loan originators in Arizona to be licensed by January 1, 2010. Late last year a federal law known as the S.A.F.E. Mortgage Licensing Act was enacted. It too requires loan originators to be licensed. Both laws require pre-license education and continuing education for all loan originators, including mortgage brokers and bankers. One of the major aspects of the SAFE Act is that the whole licensing process will be overseen by the NMLS (Nationwide Mortgage Licensing System.) All loan originators will be required to register with the NMLS and receive a unique identifier. The testing and licensing process will be coordinated through the NMLS in conjunction with the state licensing authorities which, in Arizona, is the Department of Financial Institutions. Under the excellent direction of Superintendant, Felicia Rotellini, the AZDFI is working feverishly to reconcile the differences between the state law and federal law and get the education, testing and licensing process going as soon as humanly possible. So what’s the bottom line right now? Loan originators who want to work after January 1, 2010 will need to:

• Complete pre-license education. As of the date of this writing (Jan. 5, 2009) the exact length of the course is not known but it is likely to be approximately 33 hours.
• Pass a comprehensive examination on federal and state-specific lending practices. The examination has not yet been written and the date of the first exams has not been set.

Since the length and exact content of the course is not yet known we are not exactly sure when Hogan School will offer the first course. We will continue to update you on this important topic as we learn more. If you would like to receive more information as it becomes available Contact Us Click here for the SAFE Act and SB 1028. If you have any questions please call me, Jim Hogan, personally at 327-6849.