State Regulators Settle with Mortgage Loan Originators over SAFE Act Education Requirements

On January 18, 2022, forty-four state financial agencies from forty-two states, led by the California Department of Financial Protection and Innovation (DFPI), announced settlements with more than 400 individual mortgage loan originators nationwide.  The agencies alleged that these individuals falsely claimed to have completed statutorily required annual continuing education requirements, thereby violating the Secure and Fair Enforcement for Mortgage Licensing Act (SAFE Act). The SAFE Act requires mortgage loan originators to have at least 20 hours of pre-licensing education and an annual eight hours of continuing education.  The settlements only implicate the individual mortgage loan originators, not the companies who employ them.

Under the settlements, the mortgage loan originators agree to surrender their licenses for a period of three months, pay a fine of $1,000 for each state in which he or she holds a license, and take continuing education beyond federal and state SAFE Act requirements.