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DIVISION STRONGLY ENCOURAGES INDUSTRY MEMBERS TO APPLY FOR LICENSES TIED TO SAFE ACT AS EARLY AS POSSIBLE
With the Division of Financial Institutions overseeing the implementation of the state’s Secure and Fair Enforcement for Mortgage Licensing Act (SAFE) Act and Ohio’s transition to the Nationwide Mortgage Licensing System and Registry (NMLS), the Division is issuing an early warning to industry members.
The Division is strongly encouraging all members of the industry who are newly required to obtain a registration, letter of exemption or license as a result of the SAFE Act to apply as early as possible to minimize the possibility of not having the needed Division approval by the required deadlines.
The Ohio Mortgage Broker Act (OMBA) requires that all members of the regulated industry hold the appropriate registration or license no later than May 1, 2010. This includes mortgage bankers that are now required to obtain a letter of exemption from the Division along with all individuals who are newly required to obtain a loan originator license. Companies and individuals not holding the necessary registration or license from the Division by May 1st, will be required to stop engaging in OMBA regulated activity until they receive the required registration or license.
The Ohio Mortgage Loan Act (OMLA) requires that all companies hold the appropriate registration no later than July 1, 2010 and individuals who are required for the first time to obtain an individual license to do so no later than January 1, 2011.
Simply filing an application with the Division prior to the deadline will not enable the applicant to continue working beyond the deadline. Due to the high volume of applications expected to be received prior to the effective deadlines, applicants that file close to those dates will run the risk of not receiving their license or registration by the effective date.
"As we approach the upcoming deadlines, it is important that industry members take the necessary steps to ensure that they will be able to continue to conduct business following the deadlines," said Deputy Superintendent for Consumer Finance Leigh Willis. "We are working hard to process the applications as quickly as possible, but a high volume of applications in the final weeks leading up to the deadline will likely result in some applicants not receiving their licenses by the required date. We hope to minimize the number of applicants impacted by this potential scenario through this early warning."
The Ohio SAFE Act enabling legislation went into effect on January 1, 2010. To assist the industry in complying with the new requirements, Ohio provided entities regulated by the OMBA and OMLA a transition period to provide sufficient time for industry members to become compliant with the new requirements, with as little disruption to the industry as possible.
The Division of Financial Institutions began utilizing the Nationwide Mortgage Licensing System and Registry (NMLS) on January 4, 2010. NMLS provides the industry a single portal for applying for licenses and registrations in participating states.
For additional information, please visit the Division’s SAFE Act website at http://www.com.ohio.gov/fiin/SAFEAct.aspx or contact us at (614) 728-8400.
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