Conference of State Bank Supervisors (CSBS) officials said the agency has reached settlements with over 400 mortgage loan originators nationwide in violation of the SAFE Act.
The CSBS said the mortgage loan originators deceptively claimed to have completed annual continuing education as required under state and federal law. The mortgage loan originators agreed 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 Secure and Fair Enforcement for Mortgage Licensing) Act requirements.
“State financial regulators do not take these violations lightly,” CSBS Chair and Montana Commissioner of Banking and Financial Institutions Melanie Hall said. “Through states’ collective action, consumers can be assured that their mortgages are being handled by loan originators who follow the law and are up to date in their education requirements.”
The CSBS cited the California Department of Financial Protection and Innovation (DFPI) spearheaded 44 state agencies that have reached settlements, noting a circumstance in which the owner of Carlsbad, California-based course provider Real Estate Educational Services,
Danny Yen, is facing administrative enforcement actions for providing false certificates and taking courses on behalf of mortgage loan originators through other education providers in violation of the SAFE Act.
“State financial regulators do not take these violations lightly,” said Melanie Hall, CSBS chair and Montana Commissioner of Banking and Financial Institutions. “Through states’ collective action, consumers can be assured that their mortgages are being handled by loan originators who follow the law and are up to date in their education requirements.”
Officials said Congress enacted the SAFE Act as a means of bolstering consumer protection while reducing fraud via minimum standards for the licensing and registration of state-licensed mortgage loan originators.