Interesting article from Mortgage Orb about how the SAFE Act is impacting individuals who perform loan modifications or service reverse mortgages.
According to the article, regulators in Mississippi are requiring all companies that accept or disburse mortgage payments be licensed as lenders and therefor must pass certain licensing exams, including the SAFE Act test.
MortgageOrb details the experience of Ryan LaRose, Chief Operating Officer of Celink, a reverse mortgage servicer based in Lansing, MI. it was LaRose who stepped up to the plate.
“We don’t originate loans; we’re just a subservicer,” explains LaRose, who, in 2005, helped Celink establish its reverse mortgage subservicing division – now the company’s calling card. “We really don’t have anybody in the office here who has ever originated a loan. So all of a sudden, when we found out we had to be licensed as a lender and pass the SAFE Act test, it caused a lot of commotion.”
What it meant for LaRose, specifically, was a rapid acclimation to lending practices. For Celink, a nonbank entity, to continue servicing loans in Mississippi, LaRose had to complete a combined 24 hours of training and pass two tests. One test focused on Mississippi real estate laws and, if passed, would qualify the company as a licensed lender. The second test was the SAFE Act test.
