State regulators agree with hundreds of mortgage originators on SAFE Act education requirements

Through January 19, 2022 8:31 p.m.

COLUMBUS—The Ohio Department of Commerce’s Financial Institutions Division and financial regulators in 42 other states have reached settlements with 441 mortgage originators nationwide who falsely claim to have completed continuing education annually, as required by federal and state law.

“The Financial Institutions Division has actively participated in the investigation of this settlement,” said Superintendent Kevin Allard. “Although we are regulators, we see our purpose as much more important – we have a vital role in protecting people’s financial interests. We ensure that financial institutions and consumer finance companies follow the law when doing business in the State of Ohio.

Through the settlements, the mortgage originators agreed to waive their licenses for a period of three months, pay a fine of $1,000 for each state in which it is licensed, and undergo continuing education beyond secure and fair enforcement of mortgage licensing law. (SAFE law).

Congress enacted the SAFE Act to strengthen consumer protections and reduce fraud through minimum standards for licensing and registration of state-licensed mortgage originators. The law calls on states to implement and enforce these standards, and each state has enacted its own version of the SAFE Act that requires mortgage originators to have at least 20 hours of pre-licensing education. a license and eight hours of continuing education per year.

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

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

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