What are the SAFE Act Training requirements for a bank or credit union?
If you are a federally insured bank, thrift or credit union, then your employees, who are considered mortgage loan originators (MLOs) under the SAFE Act, must only register with the NMLS (mortgage.nationwidelicensingsystem.org) and do not have to be licensed. As such, they do not have to take the SAFE Act mandated 20 hours of pre-licensing (PE) education and pass the National and State MLO Test. While you as a federally insured bank, thrift or credit union are exempt from the SAFE Act MLO licensing requirements, you will be at a competitive disadvantage soon if you do not, as a best practice, get your MLOs trained and licensed. Consumers will not want to work with a MLO who is not properly trained and licensed. That is why a federally insured depository institution should, as a best practice, require its MLOs to take the 20 hours SAFE Act mandated training and obtain licensing.
