This course is designed to prepare candidates to take the exam to become a state-licensed mortgage loan originator in Massachusetts under the Massachusetts Division of Banks (DOB). This 3-hour course covers Massachusetts specific rules and regulations, and is required as part of the 20 hours of prelicense education needed to become a Massachusetts-licensed mortgage loan originator.
Topics and Learning Objectives
This course consists of five modules and a final exam:
- The Licensing of Mortgage Loan Originators, Brokers, and Lenders
- License Requirements and Regulations
- Late Payment Limits and High-Cost Mortgage Fee Regulations
- Licensee Conduct and Examinations
- Licensee Fair Lending Evaluations, and the Community Reinvestment Act
- Final Exam
Total study time: 3 clock hours
Module 1: The Licensing of Mortgage Loan Originators, Brokers, and Lenders
The Division of Banks must first authorize a person the appropriate license before they can participate in mortgage loan origination activities. This chapter explains the DOB requirements for obtaining a mortgage loan originator license, a mortgage broker license, and a mortgage lender license. We'll also cover the annual responsibilities for maintaining the authority granted by the DOB.
Module 2: License Requirements and Regulations
Now that a license has been granted, a licensee has many recordkeeping requirements to comply with to ensure that they meet the minimum requirements for licensure. In this chapter, we'll cover how to properly maintain books and records, manage client funds accounts, and publish clear advertisements. After that, we'll go over reverse mortgage regulations that are specific to Massachusetts, and the importance of ensuring a mortgage refinance is in the borrower's best interests.
Module 3: Late Payment Limits and High-Cost Mortgage Fee Regulations
Mortgage regulations also protect borrowers from excessive fees. This chapter outlines the limitations on charging borrowers penalties for submitting late payments. We'll also cover fee restrictions and disclosure requirements when working with a high-cost mortgage loan.
Module 4: Licensee Conduct and Examinations
Improper licensee conduct can result in lost of DOB authorization. We'll now go through various prohibited acts and practices that may result in loss of license. We'll also explain how the state attorney general and DOB Commissioner can bring actions against licensees, including fines, license suspension, and revocation.
Module 5: Licensee Fair Lending Evaluations, and the Community Reinvestment Act
In this last chapter we'll outline how the DOB reviews a mortgage lender's records to ensure that the lending requirements of the community are being met in a fair and undiscriminatory way. This review includes a Mortgage Lender Community Investment (MLCI) evaluation. We will identify the steps of a MLCI exam and the possible ratings that a lender can be assigned after the DOB's completion of the lending records.
NMLS ID Required
You must have an NMLS ID to receive credit for this course. You will need this number before you begin the course.
If you already have an NMLS ID, but don't remember what it is:
- Login into NMLS,
- Click on the Composite View tab, then
- Click View Individual on the sub-header row.
- The number that appears in parentheses after your name is your NMLS ID number.
If you do not have an NMLS ID and need to obtain one, use the instructions available in the NMLS Resource Center