Happy Tuesday, LOs!
Last week we wrote about more than 400 mortgage loan originators faced with penalties after a multi-state investigation determined that they falsely claimed to have completed an annual continuing education requirement.
Some LOs had some thoughts to share. One LO who was caught up in the education fraud called the punishment "a joke," but the majority did not find anything amusing about the enforcement action.
(LOs in 42 states who settled with state regulators will have to cough up $2,700 each, on average – $1,000 for each state that they are licensed in for skipping the required eight-hour course. The LOs also have to surrender their MLO license for three months and take additional educational programs.)
"We had to take a 20 hr online class for NEW MLO's, how stupid," the LO said. "Going forward for the next 3 years I think we're supposed to take CE in person as a part of the punishment. So the penalty is to make MLO's take classes that are nothing but an inconvenience."
Other LOs had similar responses. The consensus is that the continuing education courses are a waste of time for most seasoned originators. Some also question whether the NMLS should be imposing educational requirements at all.
"I have always thought that NMLS has overstepped its bounds by a lot," said one LO.
The LO added, "They were supposed to only be a repository of information regarding individuals committing mortgage fraud in other states, so that every state would have access to that information.They have since added annual classes, which are a joke for someone who has been in the mortgage business for some 40+ years."
Meanwhile, another LO said that these classes shouldn't have an annual requirement and instead should be given every two years.
What changes would you like to see made to the annual NMLS license requirement? Do you view it as a waste of time? How could continuing education courses be more useful for you? Email me at mvolkova@housingwire.com.
Maria Volkova
Mortgage Reporter, HousingWire
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