Mortgage Monitor Newsletter | June 2016

Illinois adopts Uniform State Test

The Illinois Department of Financial and Professional Regulation has adopted the National SAFE MLO Test with Uniform State Content, effective June 1.

Illinois is the 52nd state agency that has adopted the Uniform State Test.  A passing result on the National Test with Uniform State Content satisfies the testing requirements for licensure in adopting states.  As a result, MLOs in Illinois who pass the national test will no longer be required to take a second state-specific test component to obtain licensure.

For a complete list of the state agencies that have adopted the test, visit

Mortgage industry report shows MLO license growth

The number of mortgage loan originator licenses grew by 13.5% in 2015, according to the 2015 Nationwide Mortgage Licensing System Mortgage Industry Report released March 18. In addition, all state agencies saw net growth in the number of MLOs licensed by their agency.

The report contains information on companies, branches and MLOs who are registered through the NMLS to conduct mortgage activities.

State-licensed MLOs grew by 2.5% over the past year, while the number of MLO licenses grew by 13.5%, according to the report.

In 2015, the NMLS approved 408,542 MLO licenses compared with 359,992 in 2014.

Forward loan originations reported by state-licensed companies decreased by 12.5% during the final quarter of 2015, but increased 9.5% over the year, according to the report.

To view the full report, see

FHA proposes changes to reverse mortgage program

The Federal Housing Administration announced May 18 a proposed new rule that would codify recent changes to its reverse mortgage program and add other protections for senior citizens.

“We’ve gone to great lengths to protect seniors and ensure they can remain in their homes where they’ve raised families and where they hope to live out their days,” said Ed Golding, principal deputy assistant secretary for housing at the U.S. Department of Housing and Urban Development, in a news release. “As we grow older as a nation, we have a responsibility to ensure reverse mortgages remain a safe, secure, and sustainable financial option for future generations of senior homeowners.”

In the past two years, FHA implemented several reforms to improve its Home Equity Conversion Mortgage Program. The proposed rule reinforces those changes and adds new consumer protections to make certain senior borrowers are sustained in their homes. The changes would:

• Make certain that required HECM counseling occurs before a mortgage contract is signed;
• Require lenders to fully disclose all HECM loan features;
• Cap lifetime interest rate increases on HECM Adjustable Rate Mortgages at 5%;
• Reduce the cap on annual interest rate increases on HECM ARMs from 2% to 1%;
• Require lenders to pay mortgage insurance premiums until the HECM is paid in full, foreclosed on, or a deed-in-lieu is executed rather than until when the mortgage contract is terminated;
• Include utility payments in the property charge assessment; and
• Create a “cash for keys” program to encourage borrowers to complete a deed-in-lieu and gracefully exit the property versus enduring a lengthy foreclosure process.

The proposed rule was published May 19 in the Federal Register. Comments on the proposed rule are due by July 18.

The proposed rule can be found at:

Texas department receives mortgage reaccreditation

The Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators announced that the Texas Department of Savings and Mortgage Lending has received a certificate of accreditation for mortgage supervision.  This reaccreditation certifies the department maintains the standards and practices in state supervision set by the CSBS/AARMR Mortgage Accreditation Program.

To achieve mortgage accreditation, state agencies must undergo a voluntary comprehensive review by the CSBS and AARMR accreditation team.

To learn more about the department’s reaccreditation, visit

By |2019-11-25T08:27:53-06:00May 31st, 2016|Financial Services|0 Comments

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