ness that are not covered in the national exam, but compliance knowledge reduces employer risk, which is definitely a plus in the process. If you want to go another step, training in sales and other aspects of the business is beneficial, but the point of taking the national exam is that it is inexpensive, it benefits the employer and it gives you an organized start for knowledge in interviews and in the start of your career. An optimal employee is one who quickly starts contributing to the bottom line with minimal risk of liability.
In summary … Whether we like it or not, the myriad new rules of the past four years are here to stay, and even more legislation and regulatory changes are on the horizon. Those who adapt quickly to the shifting regulatory landscape will have a leg up in the next business cycle. Rather than viewing the new requirements for testing and course-
work as a painful exercise needed only for SAFE Act compliance, employers and mortgage professionals need to look at it as a critical component of their overall preparation for growth in the industry. Education is one clear solution both for loss mitigation and MLO preparedness, as well as the prevention of production delays. Tycho Rosenfeld is president and chief executive officer of MortgageEducation.com. During his three-year tenure with the company, Tycho has grown MortgageEducation.com into a nationwide provider of all SAFE core and state-specific required pre-licensure and continuing education. Prior to his current position, Rosenfeld spent nine years in finance at Bank of America and formerly worked as a financial services consultant for Accenture. He holds an MBA in Finance from the University of Chicago Booth School of Business. He may be reached by e-mail at tychorosenfeld@mortgageeducation.com.
Continuing Education: From Mandatory to Meaningful
NATIONAL MORTGAGE PROFESSIONAL MAGAZINE
view, you may never have been pushed outside of your comfort zone. Education helped shape who you are today, and you remember those educational experiences because they were meaningful.
Mandatory to meaningful This year, you will be joining more than 100,000 licensed mortgage loan originators (MLOs) in satisfying the mandated continuing education (CE) requirement. For the first time in the history of the industry, every licensed MLO must complete a minimum of eight hours of CE for license renewal before Dec. 31. With the tougher new Nationwide Mortgage Licensing System (NMLS) protocols, you will sit for an entire eight hours, and in most cases, you will take an exit exam to obtain your CE credits. This is all mandated, but the question you must ask yourself is: “Will it be meaningful?” You can indeed make your CE meaningful. To do so, you will need to raise your expectations and view your CE requirements as an opportunity to enhance your
SEPTEMBER 2011
The most successful originators, those who are outstanding, devote time to training, education and self-improvement. You may view education as a burden or something to overcome, or, you may view it as an opportunity to improve your skills and knowledge. This is a clear choice. Do you remember when learning was fun? If asked, could you name the best teacher you ever had? Do you remember your favorite class in high school? Think about your favorite teacher who may have touched your life, opened your mind and helped you see the world in a different light. Out of the blue, this teacher was lightning in a bottle, where everything seemed new and possible. Do you remember how that felt? You were required to attend grade school; you had to go to high school; you were forced to take all of those tests and final exams. School was mandated and much of it was less than memorable. If it weren’t for that special teacher who believed in you; if it weren’t for the course that caused you to re-think your point of
ALABAMA MORTGAGE PROFESSIONAL MAGAZINE
SEPTEMBER 2011
By Paul Donohue, CRMS
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NationalMortgageProfessional.com
NationalMortgageProfessional.com
Learning is a Choice
and an instructor leads the class. Pros: The student can do the reading, quizzing and exercises 24/7 on their own schedule with minimal interaction with the instructor or other students. This type of class tends to be less expensive, and in most Choose the cases, does not have a right mode strict timer. The NMLS sets the CE stanCons: All the reading and dards and has defined four “Learning is comprehension is up to distinct modalities from irretraceable. the student with limited which you can choose. You cannot unlearn Choose wisely as there are or extract knowledge interaction with a knowledgeable instructor. pros and cons to each. once it enters These courses can often your brain.” take longer to complete Live classroom: A live than the eight required hours, and classroom setting means being at a there is a required exit exam you class in-person attending a live must pass in order to get your training event in front of a live credits. instructor. Pros: When taught by a knowledgeable, thought-provoking instructor Self-paced online: This is a timed solo course experience for those who want where you can participate in an open no instructor interaction. The content is discussion, have your questions often text-based, some offer audio and answered, and network with other provideo where the student reads through fessionals, this mode delivers the most the content, answers interactive quizzes impact. The live classroom experience and completes an exit exam. has the power to transform your pracPros: Tends to be the least expentice, and there is no required exit testing. sive format, allows 24/7 access with Cons: Tends to be more expensive, no defined time schedule with virtuas you must travel to an off-site locaally no instructor interaction. tion, adjust your schedule to the Cons: If the content is bad or boring, course availability and live classyou’ll be stuck with it for eight full hours room events are not offered in many because it is timed, there are frequent remote areas of the country. quizzes throughout and you must pass the final exam to get your credits. Live equivalent: The live equivalent setting is a live class in realtime, yet you participate at a dis- Getting the right stuff tance, via your home or office com- To make CE meaningful, consider your puter. The better versions of a live learning style and choose accordingly. If equivalent class go beyond a you are a visual learner, be sure the course Webinar to include live streaming includes video. If you love social interacvideo and live instructor interaction. tion, you may want to choose a live class or Pros: The best live equivalent offer- live equivalent setting so you can interact ings give you the power of a live in real-time with other professionals. If you class with the convenience of distant are a big reader and want to get your CE in learning. It is virtually available small pieces over a longer period of time, everywhere, with many offerings, no you may want to choose an online class. Learning is irretraceable. You cannot travel expenses and no required unlearn or extract knowledge once it course exit exam in order to pass. enters your brain. When you apply new Cons: Because the teacher is live, it tends to be slightly more expensive learning to your daily work, knowledge can change your behavior and make you a betthan other online formats. ter professional. This year, take the oppor Instructor-led online: This format tunity to choose a CE course that will prois very similar to a correspondence pel you forward. It is, after all, your future course with a strictly defined start and and your career is at stake. end times in which the class participants read the content independently continued on page 34
knowledge. You will need to expect more from your education provider by choosing a course that will challenge you, that provides you current and meaningful content that will make you a better originator.