NC Regulators Settle with Mortgage Originators Over SAFE Act Education

NC COBS News & Research

Filed January 18th, 2020

Detected March 18th, 2026

Summary

The North Carolina Office of the Commissioner of Banks, along with 41 other states, settled with 441 mortgage loan originators for falsely claiming completion of SAFE Act continuing education. The originators will surrender licenses for three months and pay a $1,000 fine per state.

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What changed

The North Carolina Office of the Commissioner of Banks (NCCOB) announced a multi-state settlement with 441 mortgage loan originators who allegedly falsified completion of their annual continuing education requirements under the SAFE Act. This enforcement action, involving 42 states, targets individuals who deceptively claimed to have met educational mandates. The settlements require these originators to surrender their licenses for a period of three months, pay a $1,000 fine for each state in which they are licensed, and complete additional continuing education beyond the standard SAFE Act requirements. The NCCOB also noted separate administrative actions against a course provider for issuing false certificates and taking courses on behalf of originators.

This action underscores the importance of accurate record-keeping and compliance with continuing education mandates for mortgage loan originators. Affected individuals must comply with the license surrender and fine payment terms. The NCCOB's involvement highlights the state's commitment to enforcing federal and state-level consumer protection laws within the mortgage industry. Non-compliance with these settlements could lead to further disciplinary actions, including permanent license revocation.

What to do next

Review internal processes for verifying mortgage loan originator continuing education compliance.
Ensure all licensed mortgage loan originators have valid and documented completion of SAFE Act educational requirements.
Consult legal counsel regarding any potential exposure to similar enforcement actions.

Penalties

$1,000 fine per state, three-month license surrender

Source document (simplified)

North Carolina Office of the Commissioner of Banks

NEWS RELEASE

KATHERINE M.R. BOSKEN

COMMISSIONER OF BANKS

RELEASE: IMMEDIATE DATE: JANUARY 18, 2020

CONTACT: SALLY-ANN GUPTA DISTRIBUTION: STATEWIDE

PHONE: 919/733-3016

State Regulators Settle with Hundreds of Mortgage Loan Originators over SAFE Act Education Requirements

North Carolina joins 43 others in multi-state enforcement action

RALEIGH – The North Carolina Office of the Commissioner of Banks and financial regulatory agencies from 41 other states reached settlements with 441 mortgage loan originators nationwide who deceptively claimed to have completed annual continuing education as required under state and federal law.

Commissioner Bosken stated, “North Carolinians deserve honesty and the highest standards of professionalism from the mortgage loan originators with whom they entrust their time, resources, and sensitive financial information.”

Through the settlements, the mortgage loan originators agreed to surrender their licenses for a period of three months, pay a fine of $1,000 for each state in which he or she holds a license and take continuing education beyond Secure and Fair Enforcement for Mortgage Licensing Act (SAFE Act) requirements.

Congress enacted the SAFE Act to enhance consumer protection and reduce fraud through minimum standards for the licensing and registration of state-licensed mortgage loan originators. The law calls on the states to implement and enforce these standards, and every state has enacted its own version of the SAFE Act that requires mortgage loan originators to have at least 20 hours of pre-licensing education and an annual eight hours of continuing education.

Danny Yen, owner of Carlsbad, Calif.-based course provider Real Estate Educational Services, is facing administrative enforcement actions for both providing false certificates and taking courses on behalf of mortgage loan originators through other education providers in violation of the SAFE Act.

The irregular education activity was discovered through a gesture-driven authentication tool called BioSig-ID, which is used to monitor all online courses approved under the SAFE Act mandate.

The NCCOB is responsible for the chartering and regulation of North Carolina's state banks, thrift institutions, and nondepository trust companies. It also regulates other financial services firms and individuals operating in North Carolina, including mortgage brokers, mortgage lenders, mortgage servicers, mortgage loan originators, mortgage originations support registrants, check cashers, consumer finance companies, money transmitters, and refund anticipation loan facilitators. The NCCOB is funded by industry fees and assessments and not taxpayer dollars.

316 W. Edenton Street, Raleigh, North Carolina 27603

919/733-3016 Telefax: 919/733-6918