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

North Carolina Office of the Commissioner of Banks

NEWS RELEASE

KATHERINE M.R. BOSKEN

COMMISSIONER OF BANKS

RELEASE: IMMEDIATE DATE: JANUARY 18, 2020

CONTACT: SALLY-ANN GUPTA DISTRIBUTION: STATEWIDE

PHONE: 919/733-3016

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

North Carolina joins 43 others in multi-state enforcement action

RALEIGH – The North Carolina Office of the Commissioner of Banks and financial regulatory agencies from 41 other states reached settlements with 441 mortgage loan originators nationwide who deceptively claimed to have completed annual continuing education as required under state and federal law.

Commissioner Bosken stated, “North Carolinians deserve honesty and the highest standards of professionalism from the mortgage loan originators with whom they entrust their time, resources, and sensitive financial information.”

Through the settlements, 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 Secure and Fair Enforcement for Mortgage Licensing Act (SAFE Act) requirements.

Congress enacted the SAFE Act to enhance consumer protection and reduce fraud through minimum standards for the licensing and registration of state-licensed mortgage loan originators. The law calls on the states to implement and enforce these standards, and every state has enacted its own version of the SAFE Act that requires mortgage loan originators to have at least 20 hours of pre-licensing education and an annual eight hours of continuing education.

Danny Yen, owner of Carlsbad, Calif.-based course provider Real Estate Educational Services, is facing administrative enforcement actions for both providing false certificates and taking courses on behalf of mortgage loan originators through other education providers in violation of the SAFE Act.

The irregular education activity was discovered through a gesture-driven authentication tool called BioSig-ID, which is used to monitor all online courses approved under the SAFE Act mandate.

The NCCOB is responsible for the chartering and regulation of North Carolina's state banks, thrift institutions, and nondepository trust companies. It also regulates other financial services firms and individuals operating in North Carolina, including mortgage brokers, mortgage lenders, mortgage servicers, mortgage loan originators, mortgage originations support registrants, check cashers, consumer finance companies, money transmitters, and refund anticipation loan facilitators. The NCCOB is funded by industry fees and assessments and not taxpayer dollars.

316 W. Edenton Street, Raleigh, North Carolina 27603

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