On July 1, 2009 the new Idaho Residential Mortgage Practices Act (IRMPA) became effective. The IRMPA incorporates new licensing requirements mandated by the federal SAFE Act and also includes new requirements for mortgage loan modification companies. Particular attention should be made to the restriction on fee collection and related timing.
Paper licenses are issued by the Idaho Department of Finance at the time of initial license approval for companies and branches, but not at the time of annual license renewals. Paper licenses are not issued for mortgage loan originators. Approved licenses may be verified on the Department’s website in the approved licensee and registrant section or on the website for the Nationwide Mortgage Licensing System and Registry (NMLSR).
Loan Originators will be issued an “Approved-Conditional” license once all initial license application requirements pertaining to the Form MU4 application and fees are completed. The license will remain in an “Approved-Conditional” status until all SAFE Act requirements are satisfactorily met. These requirements include, criminal background checks, credit history checks, pre-license education, and pre-license testing. Current information on these requirements and their availability to Idaho licensees and applicants may be found on the NMLSR website at http://www.stateregulatoryregistry.org/NMLS in the “Professional Requirements” section. Check this information regularly. In Idaho, SAFE Act requirements must be fully met by the following dates:
Pre-license national component and state component testing is currently available for Idaho licensees and applicants through the NMLSR.
Pre-license education requirements consist of: three (3) hours instruction on ethics; three (3) hours instruction on federal law and regulations; two (2) hours instruction on lending standards for non-traditional mortgage products; two (2) hours of Idaho law directly related to the IRMPA and Rules; and ten (10) hours instruction on elective topics. All instruction must be approved by the NMLSR
Continuing education annual requirements consist of: three (3) hours instruction on federal law and regulation; two (2) hours instruction on ethics; two (2) hours instruction on lending standards for non-traditional mortgage products; and one (1) hour related to the IRMPA and Rules. All instruction must be approved by the NMLSR
Control Persons, including those individuals identified as Qualified Persons in Charge (QPIC), will be required to submit fingerprints/background checks and credit reports once the NMLSR has the functionality in place. QPICs are subject to the identical continuing education requirements as mortgage loan originators.
Idaho communicates with its licensees and pending applicants primarily through email. Loan originators are required to provide and maintain a personal email address in the NMLSR. This allows communication from the Department and the NMLSR regardless of employment or sponsorship status as it pertains to the license, renewals, training, etc.
Each applicant and licensee, whether an individual or a company, is responsible for the accuracy of the information in its MU Forms in the NMLSR. Each loan originator and control person is responsible for the information contained in his or her Form MU2 or Form MU4 and must attest to the accuracy and truthfulness of the submitted information prior to transmission to any regulator. Incorrect, incomplete and false information filed will delay the approval processes, may jeopardize an approved license status and may result in an administrative action against the applicant or licensee.
Before applying for a license you should consult the jurisdiction specific requirements for Idaho on the NMLSR website in the State Licensing Resource Page section. Additional resources available are tutorials, work flow guides, quick guides, navigation guides and sample forms. If you wish to apply for a license and currently do not have an account on the NMLSR, visit Getting Started, which will walk you through the application process.
The NMLSR Call Center is available from 9:00am-7:00pm EST at (240) 386-4444. Contact the Call Center for technical and system navigation questions and support.
Mortgage Broker/Lender License: This license is required of any company or sole proprietor, regardless of location, conducting direct or indirect mortgage origination or mortgage modification activity for compensation or gain, or in the expectation of compensation or gain, on residential real estate located in Idaho
Regulated Lender Registrant: This registration is required of any company or sole proprietorship, licensed under the Idaho Credit Code, Idaho Code § 28-41-101 as a regulated lender, regardless of location, conducting direct or indirect mortgage loan origination or mortgage loan modification activity on dwellings located in Idaho for compensation or gain, or in the expectation of compensation or gain. This is not a transition of a regulated lender license. This is an additional registration requirement for existing approved regulated lender licensees to allow issuance of the required NMLSR unique ID number required for mortgage transactions and to be able to sponsor and manage mortgage loan originators in the NMLSR.
Exempt Entity Registration: This registration is required of any entity or sole proprietorship, that conducts independent contractor mortgage loan processing or mortgage loan underwriting services on behalf of Idaho mortgage broker or mortgage lender licensees or regulated lender licensees and registrants on dwellings located in Idaho, but DO NOT conduct or engage in mortgage origination activities. This registration is NOT available to mortgage broker/lender companies or regulated lender companies
Mortgage Loan Originator License: This license is required of any natural person conducting residential mortgage loan origination, residential mortgage loan modification, independent contractor mortgage loan processing or independent contractor mortgage loan underwriting activities in Idaho on behalf of a mortgage broker, mortgage lender, regulated lender or exempt entity from locations licensed to conduct activity in Idaho. Sponsorship limitations may apply.
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