VIDEO: SAFE Act Test Prep – Welcome from Mitch Hackney

The Need For Scoring High On Prep Tests

Having taught for 14 years for two of the finest provider schools in the country has shown that students whose scores are barely passing on the school’s prep exam do not do well when they have to take the real one.  In fact, so many of the “in class” prep test are so easy that scoring in the high 80′s or even the low 90′s can give the test taker a false sense of achievement with disastrous results on the big day.  Unfortunate, but true.  It is not uncommon for as many as 15 questions to be of such remote use or significance that the test taker can only resort to guessing the right answer.  The tests themselves are proprietary which means no one is allowed to see the questions until they take the test.  When the experienced loan officer has not taken a test in several years and then takes the national component of the SAFE ACT, which is usually limited to only 10 hours of classroom instruction, disaster frequently occurs because not enough time has been spent in refreshing and updating in the classroom.  Preparation is to taking this test as oxygen is to life.  The person who has not prepared well is likely to fail, and the person without oxygen will die.  Waiting until the day before the test to prepare is utter madness.  When anyone takes our tests, views the highlighted answers, and uses a pad and pencil to take notes, their chances for success go up very sharply.  It is our recommendation that everyone should score 90% or greater on our tests in order to feel comfortable when taking the national.  A high percentage of the purchasers of our tests continue to report passing on their first attempt when they used the material as instructed.

Economic Conditions Create Great Opportunities For Those Who Faint Not

Someone has said, ‘these are times that try men’s souls”, and an old hymn uses these words, “troublesome times are here, filling men’s hearts with fear”, and as a veteran of over forty-five years in this industry I can testify that both these phrases are true. The bottom of our economic mess may have already occurred , but the facts are that hundreds of thousands of loan officers have departed our industry for greener fields.  The state of Indiana reports that 75% of former licensees are no longer in business.  That may be good. Professionals have had to compete with the Johnny come lately’s for way too long.  Now, those men and women of courage, and financial ability to remain active,  should concentrate on the mandatory education that is required under the SAFE ACT, and spend plenty of time cramming for the national test.  Per capita income should rise due to fewer competitors.   The test is not easy, but with help you can do it.   www.nationalmortgagepreptest.com is a great place to start.

“The Delimma For The “Newbie” or “Wannabee” Loan Officer [ As well as a bunch of old pros ]

Only having to take 20 clock hours instead of 60 clock hours is the good news; the bad news is that the aspiring loan officer, as well as a bunch of old pros, are gladly pursuing a mortgage loan career with the bare minimum of education. The SAFE ACT only requires 20 hours, which from a well seasoned instructor’s viewpoint, is woefully short of being sufficient to make the student ready to take the national test. Most, and soon to be all, states require another test called the state component. The national costs $92.00 and the state is usually around $48.00. The national requires a passing score of at least 75%, and the state component will usually require a score of 75% as well. Instructors with many years of teaching experience at the finest provider schools are faced with trying to get enough information into the students in 20 hours as they used to do in 60 hours. Many of the provider schools offer a “prep course” of one day for each component which is also woefully short on material. The loan officer already state licensed required to only take the 20 hours may not have taken a test in five years or more. Then they go take the national with only about half of them passing on their first try. The boringly elementary prep tests given by so many provider schools lack the solid material the student requires to take either the national or the state test with confidence. Many very good prep tests are available online, although some offer so much material the student is overwhelmed with the excess. It is easy to go into a test under prepared, but it is difficult to go into a test over prepared. We have all had it drilled into us – “time is money”, and the person who goes into the test under prepared is willingly paying a tax of either $92.00 or $48.00. So, the question is: Do you enjoy wasting your time and paying unnecessary taxes to boot ?

When Will They Ever Learn ?

When facts could no longer be ignored, that fraud was still being committed in every state, the Congress passed another round of rules and regulations for the mortgage industry.   Not that there were no laws already in place that could have done the job; no, another level of bureaucracy was added to regulate the evil perpetrators.  State legislatures often mimic the Feds and pass laws to do essentially the same thing.  Having done all that fraud is still very much with us, but some states, Massachusetts being one of them, has begun to vigorously enforce these new laws.  They have issued cease and desist orders against a whole host of loan originators, one large and very prominent broker has been shut down, and ongoing investigations are uncovering more and more dirt.  There are two classes of fraud in the mortgage industry; FFH, which is fraud committed in order to obtain a home, and FFP which is fraud for profit.  Mortgage loan originators are often complicit whenever fraud is committed, but the man in the street bears a large amount of the blame as well.  Congress bears a major portion of the blame for having demanded that Fannie Mae, Freddie Mac, FHA and VA all dumb down their credit requirements.  It brings to mind that old anti-war song from the 70’s , “When Will They Ever Learn”.

President George W. Bush tried on seventeen different occasions to have Congress instigate a stronger oversight of Fannie and Freddie because of the profligate leadership of both these mammoth entities, but he was thwarted in each and every case.   Future generations may never know how our current meltdown began.  Pity.

Another testimonial – someone who passed the test!

Always enjoy sharing testimonials from clients who have used my prep test for the S.A.F.E. Act test.  Here’s another:

“Mitch has been an business partner of mine for over 7 years.  I was apprised of his prep test as he wrote it.  My immediate staff helped with gathering whatever test information we could get our hands on to assist Mitch.  He has constructed a tool that is beyond compare, I passed the test first time thanks to Mitch’s test.”

John Glenn, Austin, TX

Are you prepared like John was?  Let me help you!

S.A.F.E. Act Requirements for MLOs

On July 30, 2008 President George W. Bush signed into law a bill, known as the Housing and Economic Recovery Act, which marked an historic day in mortgage lending. Title V of HERA is better known as the SAFE ACT, which goes a long way towards equalizing the educational requirements, at least on the federal level,  for loan originators regardless of the state in which they live. This act requires loan originators to take 20 clock hours involving the various and sundry rules and laws why apply to the origination of home loans. Subsequent to the clock hours is a test that requires a score of 75 or better to pass.

The new law requires continuing education every year consisting of 8 clock hours three of which will be devoted to the subject of ethics, and each person’s license will expire 12 months after issuance unless the originator has complied with this new law. Mortgage insiders seem to think this is only the beginning and that future years will see added increases to both pre-licensing as well as continuing education.

See this article for a detailed listing of requirements for MLO’s:

http://www.housesforsalesite.com/blog/Requirements-For-Safe-Act-Compliance-By-Mlos

- Mitch H.

Are you prepared for the exam?  It’s not easy - let me help!

Now on Twitter & Facebook!

As we look to reach out to as many MLO’s who have yet to pass the exam, we have launched efforts on two popular social media outlets:

Twitter - follow me @nmtestprofessor - you also follow my latest tweets on the right sidebar of this blog.

and

join our Facebook Page!

Tens of thousands of MLOs yet to pass test

NMLS estimates that at least 135,000 MLOs will be state licensed through NMLS by the end of year.   However, to date only about 64,000 individuals have passed the National Component of the SAFE MLO Test.

MLOs who do not pass the national and state test components before their state deadline risk having their license terminated.

See full article here

How prepared are you?  Will you pass it the first time?

Get some help with this affordable prep test.  Read the testimonial below:

“Thank you National Mortgage Prep!!  I found the study material provided to be very helpful. I have successfully passed the national exam!  I did not pass the national test the first time and felt the need for additional study material, so that I could make sure I passed the second time.  I wish I had this information the first time I took the test, I would not have gone thru so much stress and worry.

Thanks a bunch,

Kristin Clardy, Round Rock, TX”

Take the test now!

Renewing my license

Each state has its own set of criteria with regard to the prospective licensee’s moral character, and it should be noted by anyone who intends to enter the mortgage industry that the National set is stricter than those of most  states.

Forgiveness of some minor crimes or misdemeanors may be allowed by some states, but the Feds have a zero tolerance against anyone who has ever had a felony conviction which involved fraud, dishonesty, breach or trust or money laundering.   Unconfirmed at this point is a sad story of a promising candidate who had a felony conviction over twenty years ago but turned his life around completely, but  was denied his license.   A licensee who is seeking renewal of his or her license will have their criminal background checked, and if found to have committed a felony for which they were convicted, will not receive a new license.

Renewal of the National license will be an annual event requiring that the licensee will be required to have completed eight additional clock hours of continuing education from one license period to the next.  Three of those clock hours will be devoted to the subject of ethics, each year, which will be a federal attempt to correct a serious lack in the origination of home loans.

Visit the NMLS Resource Center for “Streamlined Renewal Process”