Mortgage Certification

Objectives of the CME Certification Program:

• To achieve recognition of the foundational skill level required for the examination and review of mortgage providers for compliance with state and federal laws and regulations, including those related to mortgage lending, servicing, licensing, and consumer protection.
• To promote continuing education in the mortgage area of financial supervision.
• To emphasize the need for professionalism and continued advancement of mortgage examination professionals, given the specialized knowledge and evolving regulatory landscape of the mortgage industry.
• To enhance and maintain the quality of job performance and skill level of mortgage examiners responsible for overseeing licensed mortgage entities.

Candidates for the CME designation must provide evidence of the following:

• Completion of a minimum of twelve (12) months of on-the-job experience conducting mortgage examinations, including reviews of operational and lending practices, evaluation of compliance with applicable state and federal consumer protection and licensing laws, and assessment of mortgage servicing and/or origination activities.
• Participation in at least six (6) mortgage examinations within the past year, including desk reviews, utilizing established agency examination procedures. The candidate must demonstrate the ability to independently conduct key components of a full-scope mortgage examination with supervision, including successful completion of the “core” areas of a mortgage examination work program, such as loan file review, compliance testing, and risk assessment.
• It is recommended but not required that the examiner participates in at least two examinations that further the goal of Networked Supervision (e.g. accept, leverage, One Company One Exam).
• Satisfactory completion of the following CSBS course offering or an equivalent training on basic mortgage examination (consisting of a minimum of 36 hours of classroom instruction):
  • CSBS's Day One: Mortgage Examiner Training (online)
  • AND Introduction to Mortgage Origination Examinations Training and/or Introduction to Mortgage Servicing Examinations Training
  • At least 8 hours of soft skills, technical writing, conducting meetings, and/or presentation skills
    • Examples of soft skills include communication, leadership, organization, time management, conflict resolution, negotiations, meetings with management, critical thinking, etc.

Applicants must ensure that they meet all certification requirements and will then complete an attestation of successful job performance and mastery of job-related skills, providing a thorough written response for each competency category. Their supervisor will then review and affirm the attestation to ensure accuracy and completeness. The core competencies are an integral part of the certification, and a high degree of reliance is placed on the attestation for determining compliance with these skill areas. The supervisor reviewing the application form should be familiar with the applicant’s experience, performance, and skills/abilities and be confident that the applicant meets all the requirements outlined in the form.

TECHNICAL - Demonstrates effective skills required in the examination process:

• Completes pre-examination planning activities including review of historical data, preliminary risk assessments, and document requests.
• Demonstrates effective skills to plan, organize and delegate examination/inspection functions including analyzing data and forming logical conclusions.
• Effectively adheres to examination procedures and policies.
• Effectively utilizes examination tools, templates, and systems to organize workpapers and findings in compliance with agency guidelines.
• Effectively organizes assignments.
• Ensures pre-examination planning and requests are successfully completed in a timely manner.
• Ensures examination tasks are performed within expected timelines and in accordance with regulatory procedures.
• Organizes and effectively documents workpapers according to prescribed procedures.
• Identifies and escalates technical challenges or process inefficiencies to supervisory staff, contributing to continuous improvement.
• Foundational knowledge of SES for examinations as applicable to the agency. 

CONCEPTUAL - Provides effective and accurate evaluation of the operational and financial activities of mortgage providers:

• Applies critical thinking to interpret and evaluate a range of documents such as financial statements, loan files, policies, and procedures.
• Effectively demonstrates knowledge of mortgage policies, procedures, laws, rules and regulations – both state and federal.
• Effectively follows established examination procedures to collect and analyze data.
• Recognizes patterns, discrepancies, or red flags in data that may indicate compliance or operational concerns.
• Identifies the root cause of deficiencies and determines the potential impact on the institution or consumers.
• Synthesizes examination findings into a coherent understanding of the institution’s practices and risk exposure.
• Demonstrates knowledge of mortgage call reports, including any state-specific requirements.
• Develops correct conclusions from collected data.
• Prepares written comments which are factually and technically correct.
• Workpapers support the Report of Examination with detailed information and provide a clear audit trail.
• Proposes actionable recommendations based on analysis that align with regulatory expectations and risk-based supervision principles.
• Basic knowledge of BSA/AML; ACN (advance change notice).

LEGAL/COMPLIANCE - Provides effective and accurate evaluation of policies, procedures, laws, rules and regulations:

• Effectively demonstrates knowledge of policies, procedures, laws, rules and regulations including but not limited to:
  • Anti-Money Laundering
  • Equal Credit Opportunity Act
  • Fair Credit Reporting Act
  • Identity Theft Prevention
  • Mortgage Acts and Practices-Advertising
  • Real Estate Settlement Procedures Act
  • S.A.F.E. Mortgage Licensing Act
  • Standards for Safeguarding Customer Information
  • Truth in Lending Act
  • Fair Debt Collection Practices Act
  • Homeowners Protection Act
  • Gramm-Leach-Bliley Act
  • Servicemembers Civil Relief Act
  • State-specific mortgage laws
• Reviews policies and practices to determine whether they align with legal and regulatory requirements.
• Understands agency enforcement tools and when it is appropriate to recommend referral or escalation.
• Effectively follows established examination procedures for presenting violations and recommending corrective action or enforcement powers.

COMMUNICATIONS - Provides effective oral and written communications:

• Effectively and clearly communicates with mortgage provider personnel to obtain information.
• Effectively communicates with non-bank financial institution/licensee management/personnel to obtain information.
• Effectively communicates with other regulatory agencies as necessary regarding finding/issues related to an examination.
• Effectively and clearly communicates examination findings to supervisory personnel and/or owners/directors.
• Effectively and clearly communicates examination findings to internal staff including examiners and supervisory personnel.
• Presents logical supporting documentation in response to any management concerns and moderates own conclusions if presented with sufficiently supported data by management.
• Performs all meetings in an organized and professional manner.
• Recommendations and ratings demonstrate a basic/fundamental understanding of regulations, statutes, and directives as applicable to the entity under examination/inspection.
• Effectively prepares written reports of examinations that are accurate, grammatically correct, logically arranged, and factually support any conclusions drawn.

RECERTIFICATION

Every three years, participants will be required to provide evidence of the successful completion of a minimum of 63 continuing education hours (CEH). If an examiner exceeds this requirement, up to 14 CEHs may be carried over into the new three-year term. Continuing education should be selected with the goal of maintaining, improving, or expanding the examiner’s knowledge, skills, and abilities. Participants are also required to review and remain in compliance with updates to certifications. Should a material change related to the certification occur, additional training may be required to maintain certification.

The following courses and applicable offerings from providers would qualify as continuing education:

• BSA/AML Examiner School
• Cyber & IT Forum
• AMA Effective Technical Writing
• Datapalooza
• Effective Meetings with Management
• Introduction to Mortgage Servicing Examinations
• IT Examiner School
• Leadership Effectiveness and Development
• Mortgage Policy Summit
• MMC Examiner-in-Charge Training
• NMLS Conference
• Nonbank Cyber Examination Training
• State Examination System Training

Applicable portions of Annual Conferences or other seminars, not utilized for minimum certification requirements, of:

• Conference of State Bank Supervisors (CSBS)
• American Association of Residential Mortgage Regulators (AARMR)
• Federal Financial Institutions Examination Council (FFIEC)