LOAN ORIGINATORS: IDFPR RESCINDS PROPOSED EDUCATION RULE, ADOPTS UST

Breaking_NewsIn a surprise move, the IDFPR Division of Banking has rescinded the Mortgage Loan Originator (MLO) education rule it proposed in late April, which called for an additional three hours of Illinois-specific pre- license education and an additional three hours of Illinois-specific continuing education annually. The Division of Banking also confirmed plans to move ahead with adopting the Uniform State Test (UST) for loan originator license applicants in Illinois, effective June 1, 2016. For those unfamiliar, the UST covers general state-level regulatory information applicable in most states and is included as a part of the National Component of the SAFE exam that all potential licensees must pass.

Illinois State Test Component Removed Effective 6/1/2016

WHAT DOES THIS MEAN FOR YOU?

  • If you are currently licensed as a mortgage loan originator in Illinois, this has no impact on you. You may continue to originate as you have been doing.
  • If you are not yet licensed in Illinois but have already passed BOTH the National Component AND the Illinois State components of the SAFE exam, your Illinois license application will not be affected by this change. Whether or not you have actually filed the application, you do not have any additional requirements and may apply for licensure at any time if you have not already done so.
  • If you are not yet licensed in Illinois AND you have passed the National exam with UST (meaning you enrolled for and passed the National SAFE exam AFTER April 1, 2013), you will be able to apply for an Illinois MLO license on or after 6/1/2016 (do not apply before this date). This situation also applies to anyone who enrolled in and passed the STAND-ALONE UST, which was available in 2013 and early 2014.
  • If you are not yet licensed in Illinois AND you have not passed the Illinois exam AND you enrolled for and passed the National SAFE exam WITHOUT UST (you enrolled for the National exam BEFORE April 1, 2013), you have two options:

    Option 1: Enroll in the Illinois State Component exam BEFORE June 1st, 2016 and pass that exam on your first take OR;

    Option 2: Enroll for and pass the current version of the National exam with UST. Yes, this will require you to re-take the full national component, as there is no longer a stand-alone UST option.

If you have any questions about which exam(s) you have taken and passed, you can find that information by logging into the NMLS (on the State side), clicking the “COMPOSITE VIEW” tab at the top right, then clicking “View Individual” at the top center and finally clicking “Testing Information” on the left navigation bar. You can also contact the NMLS Call Center at 855-665-7123 with questions about your status.

Refer to the IDFPR press release announcing this change.


Real Estate Institute has helped thousands of LOs pass the SAFE exams with Prep-to-Pass. Our recently updated test prep program includes the most recent NMLS content outline revisions. Try sample practice tests for free at our website.

Top Three Ways to Lose Your Illinois Managing Broker’s License

Pay Fine Here ImageJeopardizing your Illinois Managing Broker’s license could be very costly and can be prevented by following a few tips outlined below.

Failure to adequately train and supervise sponsored licensees
Most Managing Brokers know that one of their primary responsibilities and obligations is to adequately train and supervise sponsored licensees. The problem is that many fail to recognize that training is an on-going process. In the eyes of Illinois Department of Financial and Professional Regulation (IDFPR) and the Disciplinary Board, even seasoned licensees and top producers are not exempt from supervision. If a real estate licensee manages to get the attention of IDFPR, the department will come knocking on the Managing Broker’s door first. The first thing that IDFPR will be asking you is, “What kind of training and supervision does your company provide to its sponsored licensees?” IDFPR will expect you to have a detailed on-going supervision and training plan available for their review. Be ready to answer questions and explain the “who, what, when, and where” behind your plan or you might be subject to disciplinary action for failure to adequately train and supervise sponsored licensees.

Real Estate Institute’s Broker Management Continuing Education (BMCE) program provides  information that you can take back to the office to get your training and supervision program up and running. You will leave BMCE inspired with ideas to help you feel better prepared to create a training program that will satisfy IDFPR requirements and ensure your licensees are successful.

Aiding and abetting the unlicensed practice of real estate activities
This is real IDFPR disciplinary headline news … “(Unlicensed) ordered to cease and desist the unlicensed practice of real estate and assessed a civil penalty of $25,000.”

Don’t let this happen in your brokerage firm. There is a fine line between activities that require a real estate license and those that don’t.

Today, many companies are encouraging all individuals within the brokerage firm to obtain a Broker’s license.  At a minimum, companies that specialize in residential leasing are requiring all individuals to get their Leasing Agent licenses. Practicing real estate without a license is a big problem with hefty consequences and fines.
Assistants to top producers are frequently being required to get licensed. Even if an assistant’s assignment is primarily clerical in nature and does not require a license, having a license will allow your assistants to expand their level of service when servicing your clients.

Real Estate Institute offers Leasing Agent and Broker pre-licensing programs that are flexible and allow your team to start anytime. Our dedicated staff and instructors will give your employee the care and attention he/she deserves from registration all the way through to being licensed and beyond. Call our customer service team at 800-995-1700 to assess which program is right for them.

Failure to complete continuing education
With so many recent changes in Illinois license law and the continuing education (CE) requirements, it’s no surprise that there is much confusion. Most Managing Brokers require 24 credit hours of continuing education by April 30, 2015. This includes 12 hours of core and elective CE which can be completed in a self-study format plus 12 hours of interactive Broker Management CE. There are a few exceptions to the requirements. Real Estate Institute knows exactly how many hours and what type of continuing education you need. Our knowledgeable customer service team will guide you and help select the program that’s right for you.

By developing an adequate training and supervision plan for your company, ensuring that your staff has the necessary licensing to successfully do their job, and by completing your continuing education on time, you will be on the path for maintaining your Illinois Managing Broker license.  Don’t risk your business; make sure you’re prepared for anything that comes your way!  Real Estate Institute is here to support you, call with any questions on maintaining your license.

New Deadline for Illinois Real Estate Exam

As you may have heard, beginning April 30, 2011, the Illinois Department of Financial and Professional Regulation (IDFPR) will no longer issue new real estate salesperson licenses.  The original deadline for a new salesperson candidate to pass the state exam was March 15, 2011, to allow the state sufficient time to process and issue the new licenses. 

For many of you who have been pulling all-nighters to meet this looming deadline, your stress levels were taken to new heights when you found out that most test centers around the state were full.  Real Estate Institute has fielded so many calls from panicked students.

Good news is here!  Real Estate Institute was notified by the IDFPR yesterday that they have authorized Applied Measurement Professionals (AMP) to extend the deadline for salesperson examinations as follows:

  • Testing will now be permitted through Saturday, March 19, 2011.

For more information visit the IDFPR’s website. http://www.idfpr.com/dpr/re/REALEST.asp