SCP Flash Update | April 2019
Are you licensed in the State of Kentucky?
If you are, then you need to read this. Did you know that Processors need to complete annual continuing education?
Kentucky Revised Statue 286.8-255(9) states:
(9) A mortgage loan processor shall not be required to maintain a registration, but the processor’s supervising mortgage loan company or mortgage loan broker shall be required to provide the mortgage loan processor with the continuing education required under KRS 286.8-260, as well as perform an employee background check in accordance with uniform standards established by the commissioner prior to hiring an applicant as a processor, and provide proof of compliance with this section to the commissioner upon demand, demonstrating that:
(a) The applicant has not been convicted of, pled guilty to, or pled nolo contendere to a felony in any domestic, foreign, or military court:
- During the seven (7) year period preceding the date of the application; or
- At any time preceding the date of application, if the felony involved an act of fraud or dishonesty, a breach of trust, or money laundering; and
(b) The applicant has demonstrated financial responsibility, character, and general fitness sufficient to command the confidence of the community and to warrant a determination that the loan processor will operate honestly, fairly, lawfully, and efficiently within the purposes of this subtitle.
A “Mortgage loan processor” means a natural person who performs only clerical or support duties at the direction of and subject to the supervision and instruction of a mortgage loan originator.
Kentucky Revised Statue 286.8-010 (22)
Are you thinking “What about Processing Assistants?”
- If they are performing any part of the processing function, then yes.
What does this mean for you?
- Employees who perform any part of the processing function and who work on Kentucky applications need to complete SAFE Act continuing education courses on an annual basis.
- They do not need be registered in the NMLS.
- Update your policies to include training oversight, completion and record retention of course completion. You will need to present the certification of completion at time of exam.