MLO Penalized by 21 States for Education Deception

An MLO settled with 21 states to resolve allegations that, at his direction, another person took the MLO’s required continuing education, and then the MLO claimed credit for attending, in violation of the states’ SAFE Act laws.  The settlement followed a Mortgage Testing and Education Board investigation, and was done under the protocols and agreements established by the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators.  The MLO disputes the investigation’s findings.

The MLO was a qualified individual and a control person of a licensed mortgage company.  Under the settlement, he must be removed from those positions, and is now barred from being either a qualified individual or control person at any NMLS-registered entity for two years.

The settlement included a $31,000 fine and licensing restrictions.  The MLO was required to surrender all of his MLO licenses, and is permanently barred from MLO licensure in all but two of the participating states.  Those two states, Colorado and Florida, will allow the MLO to reapply for licensure in two years, assuming he pays the fine and meets certain educational requirements.