Home » 2008 Issues » November 05, 2008 » BNK-33-08-00002-A Providers of Education Courses for Mortgage Loan Originators and Administrative Requirements for Providers of Education Courses
BNK-33-08-00002-A Providers of Education Courses for Mortgage Loan Originators and Administrative Requirements for Providers of Education Courses
11/5/08 N.Y. St. Reg. BNK-33-08-00002-A
NEW YORK STATE REGISTER
VOLUME XXX, ISSUE 45
November 05, 2008
RULE MAKING ACTIVITIES
BANKING DEPARTMENT
NOTICE OF ADOPTION
I.D No. BNK-33-08-00002-A
Filing No. 1038
Filing Date. Oct. 21, 2008
Effective Date. Nov. 05, 2008
Providers of Education Courses for Mortgage Loan Originators and Administrative Requirements for Providers of Education Courses
PURSUANT TO THE PROVISIONS OF THE State Administrative Procedure Act, NOTICE is hereby given of the following action:
Action taken:
Addition of Supervisory Procedure 108 to Title 3 NYCRR.
Statutory authority:
Banking Law, art. 12-E
Subject:
Providers of education courses for mortgage loan originators and administrative requirements for providers of education courses.
Purpose:
To authorize providers of education courses for mortgage loan originators and establish administrative requirements.
Text or summary was published
in the August 13, 2008 issue of the Register, I.D. No. BNK-33-08-00002-P.
Final rule as compared with last published rule:
No changes.
Text of rule and any required statements and analyses may be obtained from:
Sam L. Abram, Secretary of the Banking Board, New York State Banking Department, One State Street, New York, NY 10004-1417, (212) 709-1658, email: sam.abram@banking.state.ny.us
Assessment of Public Comment
The Department received one comment letter from a provider of education services. The comment letter was in response to the Department's proposal of Part 420 and Supervisory Procedure 107, and we responded to most of the questions in the Assessment of Public Comments for those rules. However, we reserved our response to certain questions until the publication of Supervisory Procedure 108, and those comments are addressed below.
The commenter argued that MLOs should not be limited to live classroom training, but should be given the option of taking the requisite hours of required continuing education courses in other learning formats, such as computer-based training or correspondence courses. Supervisory Procedure 108 provides guidance on acceptable course formats in addition to live classroom training. An MLO with fewer than four years' experience may take education courses in a live classroom setting, fully interactive video or audio conferences, where there is an opportunity for students to ask questions, or a format where the study cannot progress from one course segment to another or complete the course without answering questions that test the student's comprehension of the subjects previously covered. For an MLO with four or more years' experience, half or his or her credits must be in those formats, and the remaining credit hours may be satisfied in those formats or in a number of listed additional formats, including online;programs, webcasts, audio and video recordings, video conferences and teleconferences, computer based learning software, live satellite broadcasts, and other formats approved by the Superintendent.
The commenter suggested that Part 420 be amended to include specific controls for training providers to verify to the Superintendent that the MLO has properly completed the education requirements. Supervisory Procedure 108 requires course providers who use a format that does not involve a live classroom monitor who ensures accurate attendance monitoring to adopt independent attendance verification procedures, which are set out in Section 108.7(b) of the Supervisory Procedure.
With respect to recognition of qualified courses from other jurisdictions under 420.12(g), the commenter believed that the regulation should ensure that the provider has the appropriate controls in place to deliver content in a manner approved by the Superintendent. As stated in Part 420.12(g), the Superintendent must be satisfied that the continuing education requirements of the other jurisdiction meet the standards of Article 12-E. Title V of the federal Housing and Economic Recovery Act imposes uniform education requirements on the states. Consequently, we decided it was unnecessary for the Supervisory Proceduree to contain standards for determining when courses from another state should be given reciprocity.
The commenter recommended that Section 12(i) be amended to specify the period of time given to authorized course providers to remedy a deficiency. The Department determined that the appropriate time would vary with the nature of the deficiency and that a single period would not be in the best interests of potential education providers or MLOs.
