Abacus Team: 888-341-7767
Or click here to ask a question.

Mortgage Broker Training

by Paul Donohue

Mortgage broker training is something that should be taken seriously. In the current economy, it is more important than ever for brokers and borrowers alike to be aware of the laws and regulations, governing policies and procedures of the mortgage lending industry. Many people today are facing financial ruin because of sloppy mortgage issuance or lackadaisical compliance with regulations. In an effort to protect the consumer from fraudulent practices, the Office of the Comptroller of the Currency, Board of Governors of the Federal Reserve System, Federal Deposit Insurance Corporation, Office of Thrift Supervision, Farm Credit Administration, and National Credit Union Administration published a document concerning the implementation of a set of policies called the SAFE Act. This publication, dated July 28, 2010, sets the standards by which all mortgage broker training and loan origination must comply.

Using Abacus Mortgage Training and Education as the first step in your mortgage broker training will equip you for compliance with the SAFE Act and other federal regulations. They offer two levels of licensing courses. Loan Officer Training is the term they use to mean learning the fundamentals of originating loans, especially the content of the disclosure booklets, including the legal obligations for their distribution, and the detailed study of the mortgage application form. A new mortgage loan officer will spend much of his or her daily work focused on these two elements. Abacus considers this course to be training 101 for a prospective MLO, since the mastery of these specific fundamentals will better equip the applicant to succeed when taking the NMLS Test. This category is far more fundamental, detailed and ground-level than the material covered in Mortgage Broker Training.

Mortgage Broker Training is the phrase used by Abacus Mortgage Training and Education to indicate their remedial content for the experienced mortgage loan officer who is familiar with the mortgage loan application and disclosure booklet but whose knowledge of the less frequently used terms and laws is not adequate. The experienced mortgage loan officer must regularly refresh with the matter taught in their Loan Officer Training course but passing the test is contingent on comprehension and mastery of this higher-level body of law, terminology and ethics material. There is one additional requirement for Mortgage Broker Training: compliance with the SAFE Act and continuing education classes for loan officers and mortgage brokers are required every year. While an MLO will never have to take the NMLS Test again, their MLO continuing education should help them remain legal and in compliance.

Upon completion and passing of the NMLS test, you can apply for licensing with your state and be ready for your new career. Abacus Mortgage Training and Education offers both pre-licensing and continuing education courses for complete mortgage broker training. Formal mortgage broker training will equip you to get to this stage, but doesn’t diminish the importance of on-the-job training and continuing education.


© Copyright 2011 by Paul Donohue Presents (doing business as Abacus Mortgage Training & Education). All rights reserved. Printed in the United States of America. No part of this web site, its contents, texts, or graphics may be used or reproduced in any manner whatever without the express written consent of Paul Donohue.

All information about the nmls test, mortgage broker education, loan officer training and MLO requirements is gathered from government agencies that regulate the mortgage industry. Please check with your legal advisor to confirm all actions regarding your licensure.