Security One Lending has launched a new program to assist loan officers in gaining the necessary license to meet the Nationwide Mortgage Licensing System & Registry (NMLS) standards.

“Many self-sourced, charter bank loan officers see the value in becoming licensed in order to open their career options but are put off by the confusion and cost surrounding the new licensing process” says Dan Shackelford, SVP of S1L.

The company said it has been able to simplify the NMLS process for reverse mortgage originators by approaching reputable online education providers and negotiated steep corporate discounts for its employees.  ”From here we are able to provide a cost-effective, step-by-step process for unlicensed LO’s to follow in order to successfully make the transition,” said Shackelford. “Since implementing this program, we have seen a drastic increase in the passing rate for those LO’s required to take the national and state exams.”

Under the SAFE Act, all reverse mortgage originators must be registered with the Nationwide Mortgage Licensing System & Registry and have 20 hours of pre-licensing education credits as well as 8 hours of continuing education annually thereafter.  Throughout the year, states will be transitioning to the new system.

“The NMLS will weed out the uncommitted originators,” says Torrey Larsen, CEO of S1L. “People who are not very serious or not very committed to this business will have to make a fundamental decision on whether the time and effort is worth it relative to the licensing process. This is healthy. We are going to end up a with a smaller, more specialized sales force that will see an increase personal production due to the decline in overall originators.”

Some loan officers have decided to join banks so they wouldn’t have to pass the exams and incur the expense.

“Becoming a licensed originator isn’t for everyone,” said Alex Pistone, SVP of S1L. “There will always be a home for those LO’s that need the ‘charter bank name’ and big-corporate structure in order to get business. But for the entrepreneurial, self-sourced individual that currently resides under a charter bank, the NMLS licensing hurdle is a small price to pay for the ability to originate for a mortgage bank that will reward your efforts with a much higher compensation plan.”