VanEd - Real Estate School News

Finance Friday: Supreme Court decision paves way for MLOs to be covered by FLSA

Mortgage loan officers do not qualify for the administrative exemption from the Fair Labor Standards Act minimum wage and overtime compensation requirements. This is the result of a long running case ruled on this week by the U.S. Supreme Court.

In deciding an issue that arose after a 2006 DOL opinion that mortgage loan officers were exempt from overtime pay requirements under the Fair Labor Standards Act (FLSA) that was subsequently overturned by the DOL in 2010. At that time the Mortgage Bankers Association sued claiming that the DOL did not have the authority to simply rule without a public comment period.

The Supreme Court has now upheld that authority and thus the interpretation stands and mortgage loan officers should be classified as non-exempt from the overtime pay rules under FLSA.  What effect this will have on the industry remains to be seen, but at least one large lender has already stated that this will have no bearing on their business as they were already classifying their employees in this manner.

You can read more about the decision on the following articles;

http://www.bmandg.com/Portals/0/EasyDNNNewsDocuments/293/3-12-15%20SCOTS%20Perez%20Decision%20-%20Loan%20officer%20overtime%20compensation%20requirement%20(2015%20WL%20998535).pdf

http://www.natlawreview.com/article/supreme-court-mortgage-loan-officers-must-be-paid-overtime

http://reversemortgagedaily.com/2015/03/10/overtime-pay-rules-apply-to-mortgage-loan-officers-supreme-court-rules/

 

Finance Friday: CSBS reports that 57 Percent of Mortgage Licenses have been submitted for renewal as of 11/30

SRR: 57 Percent of Mortgage Licenses Submitted for Renewal

"Your License is Your Business" Early Campaign Off to Strong Start

Washington, D.C. – The 2015 renewal period for the Nationwide Multistate Licensing System (NMLS, or the System) is off to a strong start. The State Regulatory Registry, LLC (SRR), operator of the NMLS, announced today that as of November 30, 57.2 percent of licenses managed within the System have been submitted for renewal, and 63.9 percent of those requests have had their licenses approved. By the same time last year, 53.9 percent of licenses were submitted and 52.9 percent were approved.

As of November 30, 13,615 companies, 17,420 branches, and 129,492 individual licenses have had their renewal applications approved.

"We are happy to see the number of licenses submitted for renewal so far has increased from this time last year, but SRR continues to encourage non-depository entities to submit their annual renewal requests as soon as possible," said Sue Clark, Director, Regulatory and Consumer Affairs for the Vermont Department of Financial Regulation and Chair of the NMLS Policy Committee. Current renewal facts as of November 30, 2014:

 6,969, or 66 percent, of financial institutions have requested renewal;

 292,373, or 86 percent, of federal registrants have renewed;

 194,923, or 55.9 percent, state mortgage loan originator (MLO) licenses have been requested for renewal and 66.4 percent of those have been approved;

 As a percentage of renewable licenses, the number of MLOs to request renewal is three percentage points higher than in 2013, and the approval rate of those requests has increased by 10 percentage points;

 79,701, or 65 percent, of state-licensed MLOs have completed annual continuing education; and

 NMLS system enhancements to streamline the renewal process and recent changes to the NMLS Resource Center have resulted in a 20 percent decrease in volume to the call center.

SRR launched the "Your License is Your Business" renewal campaign on November 1, 2014. With the campaign, SRR seeks to educate the businesses and individuals holding more than 439,000 licenses managed in NMLS that submitting renewal requests in November significantly reduces the likelihood of a license being terminated on January 1, 2015.

NMLS makes renewing a license easy, and yet too many licensees lose their ability to operate in January because they wait until the last minute to complete professional requirements such as continuing education courses or background checks and submit their renewal request late in December.

In past years, 94 percent of all renewal applications submitted during November have been approved by December 31. The likelihood of renewal applications being approved before 2015 decreases significantly the longer individuals wait to submit their renewal applications. Historically, 80 percent of applications submitted by December 15 have been approved by December 31; that number drops to only 46 percent when the renewal is requested after December 15.

SRR is encouraging licensees to remember that their license is their business. Licensees should start reviewing their license records now and submit renewal requests as early as possible. It is important to also note that some state agencies have additional requirements that must be satisfied outside of NMLS. More information about renewing through NMLS can be found on the Streamlined Annual Renewals page of the NMLS Resource Center.

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VanEd offers Mortgage License Pre-License and Continuing Education online in conjunction with our approved NMLS education provider, MortageEd.com. Find all of the courses you need online at http://vaned.co/MLOcourses. 

Veterans Day ~ Thank You Veterans and Active Duty personnel

Van Education Center is proud to support our troops, both those who have served our Nation in the past and those who are on Active duty. And to honor their service, VanEd is offering special discounts on real estate licensing courses and appraisal licensing courses to active and retired military personnel and their spouses. Discounts of 10% off the full program price are available online and students will be able to register with the discount directly on the VanEd web site. 

For those interested in learning more about the required coursework for real estate, mortgage or appraisal courses, visit the VanEd web links below. Veteran discounts are available directly on the enrollment page. VanEd also continues to offer a 5 day Free Trial to all enrolling students. Have questions? Send us an eMail! We're here to help!

 

>>> Real Estate Licensing

>>> Appraisal Licensing

>>> Mortgage Broker Licensing

Consumer Financial Protection Bureau (CFPB) announces implementation plan for new mortgage rules

The CFPB published a news release that discusses the process of implementation of new rules that are designed to protect homeowners and borrowers. We have posted the news release in its entirety below.

WASHINGTON, D.C. — The Consumer Financial Protection Bureau (CFPB) today announced a plan it will implement over the next year that focuses on the mortgage industry’s compliance with new consumer protections that go into effect in January 2014.

“Our plan is to work with the mortgage industry to ensure that the CFPB’s new rules are implemented
accurately and expeditiously,” said CFPB Director Richard Cordray. “Both consumers and industry will win when the new rules are understood, applied, and carried out evenly and effectively. Mortgage borrowers, who have dealt with much heartache since the financial crisis, deserve this level of
attentiveness.”

Under the Dodd-Frank Wall Street Reform and Consumer Protection Act, the CFPB was required to issue new mortgage rules by Jan. 21, 2013. The CFPB met that deadline and set a January 2014 deadline for industry to comply. 

Among the new mortgage rules is the Ability-to-Repay rule. The rule protects consumers from irresponsible mortgage lending by requiring that lenders make a reasonable, good faith determination
that prospective borrowers have the ability to repay their mortgage. The rule also protects borrowers from risky lending practices, such as underwriting loans based only on low introductory “teaser” interest rates, which contributed to many homeowners ending up in delinquency and foreclosure after the 2008 housing collapse.

New mortgage servicing rules designed to protect borrowers from costly surprises and runarounds were also announced. These rules establish new, strong protections for all homeowners. Other new rules address appraisals, escrow accounts, protections for high-cost mortgages, and compensation and qualifications for loan originators.

In an effort to support rule implementation and ensure industry is ready for the
new borrower protections, the CFPB will: 

• 
  Coordinate with other agencies: The CFPB is coordinating with other federal government regulators that also conduct examinations of mortgage companies to ensure all regulators have a shared understanding of the CFPB’s new rules. This will help promote a consistent regulatory
  experience for industry. 

• 
  Publish plain-language guides: The CFPB will publish easy-to-understand summaries of the regulations in both written and video form. The guides, available in the spring, will be particularly helpful to smaller businesses with limited staff for compliance. 

• 
  Publish updates to the official interpretations: Over the next year, the CFPB plans to issue updates of the “official interpretations,” which provide guidance on how to comply with the rules. These updates will allow the CFPB to address important questions raised by industry, consumer groups, or other agencies. Priority for these updates will be given to issues that are
  important to a large number of providers or consumers, and that critically affect mortgage companies’ implementation decisions. The Bureau expects to issue the first one in the spring and issue additional updates, as needed.  

• 
  Publish readiness guides: These guides, available this summer, will help mortgage originators and servicers prepare to comply with the new rules by giving them helpful check-lists, such as suggesting that implementation plans include items like revising policies and procedures and finalizing training plans for staff. More in-depth examination procedures are expected to be published later this year by the Federal Financial Institutions Examination Council. Industry members will be able to use these examination procedures to conduct self-assessments and internal reviews of their readiness and compliance. 

• 
  Educate consumers: As the January 2014 date approaches, the CFPB will give consumers information about their new protections under these rules through a broad-reaching consumer education campaign. 

More information about the CFPB’s new mortgage rules can be found at: www.consumerfinance.gov/regulations 

Any inquiries about the meaning or intent of the regulations may be directed to: [email protected] or 202-435-7700. 

 

Have questions or comments?  Let us know! Send us an email at [email protected].

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Finance Friday: The FTC and CFPB inform companies warning them that their ads may be deceptive

The following notice was posted by the Federal Trade Commission on November 19th (online at ftc.gov). The FTC, along with the Consumer Financial Protection Beareau (CFPB) share enforcement authority over non-bank mortgage advertisers, which includes mortgage brokers, homebuilders and real estate agents.

All real estate professionals are advised to review the article and examine the mock advertisements in order to ensure compliance with the rules. Note that the warning letters were issued to 20 companies inclusive of real estate brokerages.

FTC Warns Mortgage Advertisers that Their Ads May Violate Federal Law

After reviewing hundreds of mortgage advertisements, the Federal Trade Commission staff has sent letters to 20 companies, warning them that their ads  may be deceptive.

The FTC sent its warning letters to real estate agents, home builders, and lead generators, urging them to review their advertisements for compliance with the Mortgage Acts and Practices Advertising Rule and the FTC Act. 

The FTC sent the letters in coordination with the Consumer Financial Protection Bureau (CFPB), which issued warning letters to approximately a dozen other companies.  The CFPB sent its warning letters to mortgage brokers and lenders.  Both agencies have opened nonpublic law enforcement  investigations of other advertisers that may have violated federal law.

The agencies reviewed approximately 800 mortgage ads from a wide variety of media that included web sites, Facebook, direct mail, and newspapers.  The agencies seek to spur compliance with the Mortgage Acts and Practices Advertising Rule, known as Regulation N since rule making authority for it transferred from the FTC to the CFPB. The rule prohibits material misrepresentations in advertising or any other commercial communication regarding consumer mortgages.  The FTC and the CFPB share enforcement authority over non-bank mortgage advertisers such as mortgage lenders, brokers, servicers, and advertising agencies.  Mortgage advertisers that violate the Rule may be required to pay civil penalties. 

The agencies’ review revealed several types of troubling claims that could be misleading to consumers.  Examples are illustrated in these “mock ads".  The agencies’ review found, for example:

• Advertisements offering a very low “fixed” mortgage rate, without discussing
  significant loan terms.
• Advertisements containing statements, images, symbols, and abbreviations
  suggesting that an advertiser is affiliated with a government agency.
• Advertisements “guaranteeing” approval and offering very low monthly
  payments, without discussing significant conditions on these offers.  

The FTC has advice for consumers about mortgage advertising.  For more information see the website Your Home and the publication Deceptive Mortgage Ads: What They Say; What They Leave Out. 

VanEd Presents: Nebraska Real Estate Licensing and Continuing Education available online at http://nebraskarealestatelicensing.com

Van Education Center is proud to offer the course Real Estate Finance in Nebraska. This 30 hour course, combined with VanEd's Principles in Real Estate (30 hours), will meet the Salesperson education requirements in Nebraska. Both are included in the Nebraska Real Estate Salesperson Licensing package.

Package price includes all books & "Getting Started and Staying on Track" course FREE

VanEd is the leader in Distance Education, including Pre-License education in Colorado, Texas, Oklahoma and Nebraska. VanEd also offers Continuing Education online. For more information on our Nebraska Pre-License education, visit us online at www.vaned.com.

The Nebraska Real Estate Licensing program has been online at VanEd for three years and is the most successful online real estate education available. Nebraska Real Estate Professionals can also complete all of their mandatory continuing education online with VanEd as well. And for those who are interested in obtaining their GRI, Graduate REALTOR® Institute designation, VanEd is the online education partner for the Nebraska REALTORS® Association delivering the highest quality online GRI program in the country.

To learn more, check us out online at http://www.nebraskarealestatelicensing.com.

Have questions or comments?  Let us know! Send us an email at [email protected]
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What we're reading: Top Posts from around the Industry

This is a sample of the articles, posts and videos that made their way onto our computers (and that we found interesting or informative) this week.

Inman Next posted this video of Chris Smith at an Agent Reboot. Our favorite find during the presentation of 20 Mobile Tools that will make you Stand Out (besides the passion Chris shows for his iPad and all of the potential uses for real estate professionals, of course) has to be the CalcMoolator app.  http://next.inman.com/2011/10/20-mobile-tools-that-will-make-you-stand-out/

HUD Secretary Shaun Donovan announced Wednesday that White House officials and state attorney's general are close to a settlement over the "robo-signing" foreclosure issue. Housing markets and borrowers will be thankful to get that behind them. Now we can get back to processing foreclosures the right way. And let's not forget that perhaps as many as a million borrowers will be eligible for some sort of write-down on their mortgages.  http://www.marketwatch.com/story/robo-signing-settlement-close-reports-2012-01-18?reflink=MW_news_stmp

The fact that Fannie Mae sees a 3.5% increase in home sales in 2012 isn't what caught our eyes. Instead we noticed that total loan originations would be down to $1.01 trillion from and estimated $1.36 trillion in 2011. Consider the projected 40% drop in refinance money an added bonus.  http://www.housingwire.com/2012/01/13/fannie-mae-economists-see-2012-home-sales-up-3-5-to-4-72-million

Adding value and ROI for Green features has been nothing short of ... well ... difficult when it comes to getting the appraisal completed. New moves from industry groups should help in the expansion of Green valuation, and as one of his 10 Predictions for Green building in 2012Sean Penrith says home buyers and home sellers asking for Green appraisers will help. http://www.sustainablebusinessoregon.com/columns/2012/01/ten-predictions-for-green-building-in.html

Colorado Division of Real Estate announces MLO CE Compliance Rates at less than 10%

Mortgage Loan Originators take note: Those who regulate you are watching. The Colorado Division of Real Estate who oversees the Mortgage Loan Originator Program in Colorado published in their Spring/Fall 2011 edition of Real Estate News that MLOs in the state were less than 10% compliant in completing mandatory continuing education. Nationwide less than 20% of all MLOs had completed the mandatory education.

Click here to read the Summer/Fall edition of the DRE's Real Estate News Newsletter

The required Colorado Mortgage Loan Originator continuing education is available online! VanEd is proud to be able to offer our students the 8 hours of NMLS required education and to be the home of the two hour Colorado Mandatory course online.  The 2 hour course was developed by the Division of Real Estate and covers a number of topics.

VanEd also offers access to the 8 hours of required NMLS education in many states. Find your state information online by clicking here.

(Follow VanEd on Twitter to stay on top of current information and receive special discounts and promotions on all of our new courses - perhaps even on the recently launched MLO courses or discount offers on Real Estate Licensing education!)

FBI Annual Report on Mortgage Fraud

The number of pending investgations into cases of suspected mortgage fraud increased by 12% last year over 2009 numbers, according to the FBI's recently released annual report on mortgage fraud.

The report also notes that data collected from Core Logic indicates that more than $10 billion in total loans were closed last year where fraudulent application data is suspected of being used.

The report, just like last year's, concludes that mortgage fraud remains widespread due to the depressed housing market and overall economy. The most common fraud schemes involve the falsification of application data used to qualify borrowers, and inflated appraisals used to increase prices.

The FBI report says that mortgage fraud remains prevelent due to the potential for high profits and the low risk of being caught. They also point out that licensed brokers, loan officers, appraisers and real estate professionals in many cases use their knowledge of the system to find vulnerable areas where they themselves can commit the fraud.

To learn more, take VanEd's recently updated Mortgage Fraud course online anytime!

Discounts available for Mortgage Loan Originators (MLOs) on Licensing and Continuing Education

Van Education Center is proud to offer  Mortgage Broker Licensing Education!

We are offering the entire Mortgage Broker Program online that is required by the NMLS for licensure in all 50 states. And now we are offering a 15% discount on the cost of the required education. VanEd is also offering discounts on the required Core Continuing Education when taken online in 2011.

 

Did you miss your certification period in 2010? Not to worry! there is still time to complete your requirements and meet the Febuary 28th deadline.

To learn more about the requirements or the online course options, Click Here!