Iowa Admin. Code r. 187-19.2 - Mortgage loan originator requirements
(1) A natural person who applies for a
license pursuant to Iowa Code section
535D.4
to act as a mortgage loan originator in this state shall apply with the
superintendent through the NMLS . The superintendent may consider an application
withdrawn if it does not contain all of the information required and the
information is not submitted to the superintendent within 30 days after the
superintendent requests the information.
(2) Prior to applying for a mortgage loan
originator license, the applicant must complete the prelicensing education
requirements pursuant to Iowa Code section 535D.7.
(3) Prior to applying for a mortgage loan
originator license, the applicant must pass the SAFE mortgage loan originator
test , which is comprised of two components: a national component and a state
component. Applicants must pass each component with a score of 75 percent or
higher.
(4) The fee for an initial
mortgage loan originator application is $50. This fee is nonrefundable. This
fee is in addition to any fees established and charged by the NMLS , any
approved education course provider, any approved education testing provider,
any law enforcement agency for fingerprints and background checks, or by any
credit reporting agency used by the NMLS .
(5) An applicant must provide fingerprints,
authorize a fingerprint background check through NMLS , and pay the appropriate
fees for the purpose of conducting a national criminal history background check
through the Federal Bureau of Investigation. This requirement applies to all
individuals, regardless of whether the applicant was previously registered
under Iowa Code chapter 535B or if the applicant has previously submitted
fingerprint cards for licensure.
(6) Each applicant must provide authorization
to obtain a credit report through NMLS .
(7) To engage in activities requiring a
license, a mortgage loan originator must be covered under a surety bond that
reflects the dollar amount of loans originated, processed, or underwritten, as
the case may be, on an annual basis. The bond must be on a form provided by the
superintendent . Satisfaction of this requirement shall be met by one of the
following:
a. A mortgage loan originator who
is an employee or exclusive agent of a company subject to Iowa Code chapter
535B, 536, or 536A may be covered by the company's bond.
b. A mortgage loan originator who is not
covered by a company bond pursuant to paragraph 19.2(7)"a"
must provide an individual surety bond meeting the requirements of paragraph
19.2(7)"c."
c.
The surety bond amount required to be filed and maintained by or on behalf of a
mortgage loan originator who is not an employee or exclusive agent of a company
subject to Iowa Code chapter 535B, 536, or 536A shall be set and adjusted
annually as necessary in accordance with the following scale, based on the
volume of residential mortgage loans originated, processed, and underwritten,
as the case may be, by the licensee during the preceding calendar year:
|
Loans |
Bond Amount |
|
$0 - $5,000,000 |
$25,000 |
|
$5,000,001 - $20,000,000 |
$50,000 |
|
$20,000,001 - $50,000,000 |
$75,000 |
|
$50,000,001 - $100,000,000 |
$100,000 |
|
Over $100,000,000 |
$150,000 |
(8) To engage in activities requiring a
license, a mortgage loan originator must be employed by, under contract with,
or an exclusive agent of a licensed company or a company that is exempt from
licensing requirements. However, the superintendent may consider an application
for mortgage loan originator from a person not currently employed by, under
contract with, or an exclusive agent of a licensee . If the superintendent
determines that the applicant is otherwise eligible for a mortgage loan
originator license, the superintendent shall approve the license in
"active-inactive" status or similar status type indicating that the applicant
has met the individual requirements for licensure but is not authorized to
conduct business.
(9) A mortgage
loan originator license expires on the next December 31 after issuance;
however, mortgage loan originator licenses issued on or after November 1 but
before January 1 will not expire until December 31 of the following year. For
example, a mortgage loan originator license issued on November 17, 2009, would
not expire until December 31, 2010.
(10) An individual who has completed 20 hours
of prelicensure education pursuant to
12 U.S.C.
5104(c) must retake 20 hours
of prelicensure education in order to be eligible for mortgage loan originator
licensure if the individual:
a. Fails to
acquire a valid state license or federal registration as a mortgage loan
originator within three years from the date of federal compliance with
12 U.S.C.
5104(c); or
b. Fails to acquire a valid state license or
federal registration as a mortgage loan originator within three years from the
last date of licensure or registration as a mortgage loan originator.
Notes
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