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Consumer (and Realtor) Website for Loan Officer Licensee Searching

By Charles Dailey

Mortgage and Lending with iLoan - NMLS ID#1947845 NMLS 79048

January 17, 2010 07:01 PM

On January 25, the National Mortgage Licensing System and Registry (NMLS) will be online and available to the public. Realtors and buyers alike will be able to easily find critical information about loan officers. Because implementation dates vary by jurisdiction, not all loan officers will be searchable in the system right away but, soon enough this will be a very valuable tool.

The available information is pretty comprehensive unlike most current license lookup services. Rather than list what information will be searchable, let’s take a look at what questions this search will answer:

1. Is this loan officer experienced?

2. Has this loan officer had job gaps in his/her career (last 10 years)?

3. Does this loan officer tend to stay in one place or bounce around from place to place (last 10 years)?

4. How long has this loan officer been at their current place of employment?

5. What are the loan officer’s qualifications in financial services related businesses (last 10 years)?

6. Does this loan officer work for a branch company and, if so, where’s the corporate headquarters?

7. Is this loan officer engaged in any other businesses?

If a borrower or Realtor wants to exercise due diligence on a potential experience with a loan officer, this will be of significant use. If one uses this tool to research the loan officer, and to some extent their company, they may have further questions about the mortgage company. There are more options than the BBB, rip off report and other consumer ratings agencies to do this.

HUD uses a program called Neighborhood Watch to analyze patterns of loans that become delinquent within the first 2 years of origination. It serves as a good barometer of the quality of loans originated by a FHA mortgagee and it can be searched all the way down to the individual branch of that mortgagee (a good "compare ratio" is below 100 by the way). It is VERY uncommon for Realtors or borrowers to use this as a tool but it’s a real weapon and, I think, should be used. It's also a sign of things to come.

It would not surprise me if ultimately the NMLS Unique ID number for each originator becomes required to be added to each loan application. Using that information FHA, Fannie Mae and Freddie Mac would be able to track loan performance from the mortgage company to the branch and all the way down to the loan originator. I am not a big believer in the short term benefits of continuing education and testing but this addition of a public search feature to the NMLS and the future possibilities for loan officer tracking ARE an exciting and useful addition.

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Thomas Feng

Coldwell Banker Residential Brokerage - Santa Clara, CA

Thanks for the post Charles. This is extremely helpful for me (once it hits Jan 25th lol) because I am a new agent in the business and I'm looking for ways to find 2-3 qualified loan professionals that I can call up frequently in my area. Good info thanks man.

Jan 18, 2010 02:56 AM

Tammy Lankford,

Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA

Broker GA Lake Sinclair/Eatonton/Milledgeville

I like this, not for finding new loan officers to recommend. I have a few great ones that I don't plan on NOT recommending, but what a great way to weed out the bad ones that consumers tell me they think are great ... now I can ask have the looked them up on this web site and do they really know?

Jan 18, 2010 03:25 AM

Chris Olsen

Olsen Ziegler Realty - Cleveland, OH

Broker Owner Cleveland Ohio Real Estate

Good stuff Charles, I have it on my calendar to check out.

Jan 18, 2010 04:04 AM

Christianne O'Malley

Dickson Realty - Reno, NV

Exceptional Service - Delivering Results in Reno!

This is very interesting. I think it would be valuable data to have to be able to determine if a particular loan officer's 'portfolio' generates a higher than average default percentage. Sounds like the first step in policing those who would falsify documentation. Now how do we protect the loan officers from dishonest buyers?

Jan 18, 2010 04:45 AM

Wayne Golliday

Mobile Home Sales of Florida LLC - Jacksonville, FL

So was this planned before the housing crises or because of it?

Jan 18, 2010 05:08 AM

Monica Bennett

Littleton, CO

Charles:

Thank you for this information. I rely on a small number of lenders right now and would like to expand my pool. This information will be very helpful.

Jan 18, 2010 05:09 AM

Regina P. Brown

MBA Broker Consultants - Carlsbad, CA

M.B.A., Broker, Instructor

Charles, I can't wait to start using this system for CA. IMHO, loan officers, brokers, & bankers have been unregulated for too long. They need some accountability! And we need to know who we are dealing with when we recommend lenders to our clients (or receive an offer from a buyer with a lender's letter attached).

Regina P. Brown

Jan 18, 2010 05:31 AM

Rebecca Gaujot, Realtor®

Lewisburg, WV

Lewisburg WV, the go to agent for all real estate

Charles, thanks for the great information..will forwarde as well.

Jan 18, 2010 06:02 AM

Anthony Ebright - NMLSR ID #247647 Purchase and Refinance Mortgages

FHA, VA, Conforming, Jumbo - Wells Fargo Home Mortgage - Santa Rosa, CA

Charles - Thanks for the information. Can't wait to see where I stand. Hopefully, over 18 years experience will pay off! ;-)

Jan 18, 2010 06:10 AM

Mark Towler

Southeast Mortgage - Atlanta, GA

I am a mortgage broker in Atlanta. A couple of more things with the new NMLS law.

All mortgage brokers and correspondent lenders get fingerprinted and have a federal background check performed on them. I have already passed the state and national test. The fingerprinting is not set up yet. If someone is behind on their child support or taxes they can not obtain a license. If there are open judgements on their credit report you can not obtain a license. If you have ever been convicted of a felony you can not be licensed.

None of the above will have an adverse effect on me. I believe there will be far fewer brokers come April 1st when everyone must be licensed.

I do believe the law is unfair in that originators who work at banks do not have to be licensed, tested, fingerprinted, etc. But then we know how all banks are just looking out for the borrowers best interests!

Jan 18, 2010 07:04 AM

Charles Dailey

iLoan - NMLS ID#1947845 - Saint Paul, MN

Thank you all for your kind words. I wanted to comment on a couple things:

Lenn - Can you imagine calling for a reference from their previous employer (tee hee hee)?

Missy Caulk - I added those links you're looking for to my blog www.originatordigest.com on the right hand side. Remember to use the address as it appears on www.usps.gov when searching or it may not register correctly.

Kyle Jan, Gene Mundt and Mark Towler - I'm personally still split on this. On the one hand, I do see the double standard but, on the other hand, we don't go through audits that are anything like what these banks suffer through. I appreciate how careful they have to be and it wouldn't surprise me if taking a test isn't a great trade off for us. Then again, with the increasing risk of loan buybacks for brokers and loan correspondents, who knows? I would love it if someone in this forum who has gone through a bank audit would write about what it's like. That could start a great debate that I'd love to weigh in on. Either way, they're going to have to register in the NMLS too so this vetting method will ultimately work for them as well as us.

Mike Wald - My first tought would be, "how can that be since the NMLS is hardly rolled out in most jurisdictions and there isn't a field to enter a MU4 number in the FNMA 1003 at present?" But maybe you know something I don't know. Can you share a link or something of that nature that shows this requirement? Because, if that's true, I need to get a memo out in a hurry!

Christine Gordon - LOVE YOUR COMMENT!!! Dishonest buyers are very rare but also very painful. Often times, if a crafty and dishonest buyer gets through a lenders due diligence nets (red flag checks, artificial intelligence fraud checks, CAIVRS, 4506t's and such) and the loan goes into default, the lender has to buy that loan back. How's that for painful? Right now there's very little recourse on this and don't look for legislatures to take pity on banks and lenders to make it any easier. It sucks but it's a reality we live with every day (and lose sleep on every night).

Anthony Ebright - LOL! You saw the same thing I did here. With your experience and Wells Fargo's compare ratio, this should do nothing but help you.

Jan 18, 2010 08:23 AM

Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi

NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656 - New Lenox, IL

708.921.6331 - 40+ yrs experience

Charles: Went through many an audit back in the days when I was at the Savings and Loan. You live on pins and needles, but at least while the auditors were around ... I didn't feel the intense scrutiny personally. It seemed much more a broader interest regarding the S&L itself. AFTER the auditors left, we were informed of the individual remarks or problems that existed regarding our files and performance. Then it got personal.

My point wasn't so much about finding blame ... but with the personal reasons an individual might choose to write loans with one form of lender over another. There are many reasons, some being as simple as independence and more control over your own earnings or hours vs a more structured work schedule ... plus others. Maybe it's because of all the constant media comments and scrutiny regarding the mortgage industry that I am slightly "sensitive" to this issue. Still, with that being acknowledged, I do believe that it is implied that somehow if you are not with a federally chartered bank ... you are somehow less capable or more likely to commit errors ... or even worse, fraud. I get a little sensitive about that implication ...

To be completely fair and safe, I personally believe that testing should be done across the board. We will see how it plays out ... Thanks for your comments and opinions and the chance to share mine.

Gene

Jan 18, 2010 09:07 AM

Charles Dailey

iLoan - NMLS ID#1947845 - Saint Paul, MN

Gene - Point taken on what is "implied" in the NMLS requirements. I wasn't thinking about that. I also didn't realize you were with Chicago Bancorp. Good company!

Jan 18, 2010 09:22 AM

Patricia Aulson

BERKSHIRE HATHAWAY HOME SERVICES Verani Realty NH Real Estate - Exeter, NH

Realtor - Portsmouth NH Homes-Hampton NH Homes

Thanks for the post today.

Patricia/Seacoast NH

Jan 18, 2010 10:18 AM

Eric J

Eric J - Dream Home Financing - Freehold, NJ

Dream Home Financing

Charles, I would be very careful on relying upon the information provided in the NMLS as bible. Like any other agency, the system has flaws. For example, I can edit my registration information to say just about anything that I want. I can add a prior employer and input whatever dates I want. Finally, New Jersey is just migrating into NMLS and I expect there to be a lot of missing data on many loan officers.

Jan 18, 2010 10:33 AM

Charles Dailey

iLoan - NMLS ID#1947845 - Saint Paul, MN

Eric - The jurisdictional rollout will prevent this from being accurate right away to be sure. However, anyone editing their registration to say anything they want is taking their career and perhaps more in their own hands. All registrants must attest to "keep the information contained in this form current and to file accurate supplementary information on a timely basis" and "understand that I (the registrant) am subject to administrative, civil or criminal penalties if I give false or misleading answers."

Jan 18, 2010 12:24 PM

Jennifer Fivelsdal

JFIVE Home Realty LLC | 845-758-6842|162 Deer Run Rd Red Hook NY 12571 - Rhinebeck, NY

Mid Hudson Valley real estate connection

Charles I bet this will be a well used resource, it is usually hard to get information on a loan officer your client might be using. This is a great tool for the consumer, more transparency.

Jan 18, 2010 02:54 PM

Christine Donovan

Donovan Blatt Realty - Costa Mesa, CA

Broker/Attorney 714-319-9751 DRE01267479 - Costa M

Interesting. It looks like we're suddenly going to have a great deal more information than we did previously.

Jan 18, 2010 03:52 PM

Damon Gettier

Damon Gettier & Associates, REALTORS- Roanoke Va Short Sale Expert - Roanoke, VA

Broker/Owner ABRM, GRI, CDPE

This is good information to have. Thanks for posting.

Jan 19, 2010 11:40 AM

Anonymous

Haresh

The deployment of the MNLS will be judged in time but are we not focusing on the smallest part of the mortgage collapse. Do we have this kind of transparency with Banking Systems as a whole. Talk about compentance. The people running the NMLS are the same ones who lowered the bar and created no doc, stated income, and nina loans. They are the ones who bundled the loans into mortgage backed securities and said these are good loans with zero auditing. Look at countrywide, Goldman Sachs, Leman Brothers, etc. Every bank took a blind eye for the sake of profit.

Should we not have transparency in all jobs not just the mortgage industry. Politicians, Judges, Bankes, Govenment Workers, Social Workers, Military personnel, etc.

The NMLS is hugely slanted to push independent brokers out of the business and force borrower back to the horrible task of face to face negotiatiatiion with a bankers who were nothing more than car salesmen themselves. Borrowers cannot afford the time to go from bank to bank with each inquiry going against there credit.

Who wants to be a mortgage broker. How can a newbie compete against a season veteran? Would you want a person with six months or two years to do your loan when you can find a broker with twenty years.

Frankly many twenty year old college grads are far brighter than the twenty year old high school cronies but there is nowhere on the NMLS to show this. Why not IQ tests and polygraphs?

We would be far better off with a mortgage broker recommendation site that shows the number of satisfied borrowers.

Just want to point out some other points of view.

Dec 19, 2010 05:19 AM

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