July 9, 2009
Vermont Mortgage Bankers Association
 Newsletter - More Compliance Information
In This Issue
BISHCA Foreclosure Notice
NMLS Website
Critical Education - Mark your calendar
VHFA Wants Foreclosed Homes

Platinum Sponsors

Strategic Information Resources
Maureen Devine

Vermont Housing Finance Agency
Erin Perrin

Diamond Sponsors

Chittenden Bank

Law Offices
Fred V. Peet

Vermont Attorneys Title Corporation


VMBA Summer Gala at the Burlington Boathouse

August 5th
5:00 - 7:30


Red Sox Raffle
Thanks to Maureen Devine
Strategic Information Resources/SIR for the Ticket Donation

Two Winners of Three Red Sox Tickets each will be drawn at the Gala. 

 All Member Employees are Welcome!
Please be sure all who would benefit from our news receive this newsletter.
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The latest Update
Additional important information is outlined below from BISHCA, VHFA, and NMLS.
Many new rules and programs will impact our industry over the next year and it will take time to absorb it all.

Below you may find news that is "new" to you, or just a reinforcement of what you're already aware of. I'll continue to provide updates and reminders as we go through this transition.
Diane Smith
Executive Director
Vermont Mortgage Bankers Association
   Foreclosure Action Notice to BISHCA 
New Requirement in H-171
(Excerpt of Memo from Thomas J.Candon, Deputy Commissioner of Banking)

Governor Douglas signed into law House Bill 171 on May 21, 2009.  The legislation (Act 29 of the 2009 session) required all mortgage lenders filing a foreclosure on a residential property to file a notification with the Department of Banking, Insurance, Securities and Health Care Administration (BISHCA).   A link to filling out a form electronically can be found on the BISHCA's website at www.bishca.state.vt.us. 

After the form is completed a certification of compliance can be printed and submitted with the residential mortgage foreclosure being filed with the Superior Court. 
A copy of the appropriate section of the law is attached as well as a blank form for illustration purposes only of the information to be electronically filed, and the certification of compliance template.
The new law became effective June 21, 2009.

Questions should be directed to Sue Clark, Regulatory & Consumer Affairs Director at 802-828-4878.
NMLS Website
Bookmark this Site!
I recommend everyone bookmark the website of the National Mortgage Licensing Service,  NMLS.

This site contains a wealth of information about the new requirements and dates programs or tests will become available. 

I check this site frequently for updates, and VMBA has submitted our application to become an approved provider of NMLS Education for you.  Assuming we receive our approval, I'll begin to submit our Fall line up of classes for NMLS Pre-Licensure credit.

This question came to me, and it is something every loan originator or officer should consider so I want to share with everyone;
"If I work for a depository institution now, but change employers later to a non-depository, will I have a "grace period" to fulfill my education requirements?"

The answer is no - there is no grace period once the requirements are in place, that is as of July 1, 2010, in order to originate mortgage loans as an employee of a licensed lender or licensed broker, you must have completed the mandatory Pre-Licensing Education (PE) before you take a single mortgage loan application.

Sue Clark, Regulatory & Consumer Affairs Director at BISHCA adds;
"Not only will they have to complete the pre-licensing education requirements, but they will also have to pass the national and state specific exams.
A person that is currently employed by a financial institution, can consider taking the courses and test, and obtain a MLO license.  The license would be in an Approved - Inactive status, but would mean that if they changed employers, as soon as the new non-depository entity sponsored the person, the license status  would change to Approved - Active, and they could start work immediately."

As a reminder, Pre-Licensing requires;
20 hours education including:
3 hrs Federal Law & Regulation
3 hrs Ethics, including fraud, consumer protection, and fair lending
2 hrs Lending standards for nontraditional mortgage products
12 hours Other Approved NMLS courses

Obtain a Passing score on the National and State Tests.

Annually as an licensed lender you would need to complete the Continuing Education as follows:
  • 8 Hours Continuing Education Annually:
  • 3 hrs Federal Law & Regulation
  • 2 hrs Ethics, including fraud, consumer protection, and fair lending
  • 2 hrs Lending standards for nontraditional mortgage products
  • 1 hour Other Approved NMLS courses
Beginning in 2011, VT License renewal required on or before December 1 annually requires the above CE.

Annual Continuing Education classes will count only in the calendar year in which they are taken.
The same CE class may not be taken two years in a row.

Remember - Bookmark this Site: NMLS
Burlington BoatHouse

If you want to get your Education close to home - mark your calendar now to save these dates.
It's unlikely we'll be able to run multiple sessions, so you need to plan ahead if you want these classes to meet the mandatory education deadline!

These classes will be submitted to NMLS for PE Credit. 
They have not been approved.

  • September 9- RESPA Update with Ruth Dillingham 
(4 hours Federal Law)
  • October 13 - 8 hour program (two separate sessions)  4 hours VT State Law - SAFE Act and VT State Test Preparation (Elective credit), 2 Hours VT Guidance on Nontraditional credit and 2 hours Reverse Mortgage    (4 hrs Nontraditional),
  • November  - Consumer Credit Protection Laws with Maureen Devine and FHA Fraud Prevention with HUD            (3 hours Ethics)
Take Notice!!

VHFA Wants Your REOs!
(Provided by VHFA)

VHFA has received $7 million in funding for the Vermont Neighborhood Stabilization Program to:

  • Purchase foreclosed single-family homes from lenders
  • Rehabilitate as many as we can fund
  • Resell them to income-eligible Vermont families

Why should you sell to VHFA?
We're committed to "doing the right thing" with all REOs we acquire! VHFA will thoroughly rehab all REOs - with special emphasis on energy efficiency - before re-selling them to income-eligible Vermont families in need of safe, decent, affordable homes to live in.
Time is limited
Time is limited for us to put this $7 million to work in Vermont. VHFA is committed to meet our deadlines to acquire homes and put Vermonters to work to fix them up.
Link to VHFA For More Information

Diane Smith
Executive Director
Vermont Mortgage Bankers Association
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Vermont Mortgage Bankers Association | 12 North Main Street | St. Albans | VT | 05478