What a novel idea why does it always take a catastrophe before smart legislative is put into place?

In Maryland our loan officers were required to take a 40 hour prelicensing class and become licensed in January of 2007.  It sure helped weed out some unscrupulous lenders. 

It's about time!

In Texas they need to have a license.  It is good for 2 years at a time.  Then they have to take a class to renew.

J.

I think it's a great idea. If the loan officers who signed off on some of those questionable loans were more closely regulated, we might not have had the credit mess we have now.

It is a State control vs Federal control issue. That is why Brokers are already being licensed, but employees of the big banks don't have to be. I think most States would love to be able to have some oversight of the individual loan officers too, but that is a Big Fight, as fas as I understand.

I like it too.. I have had deals fall apart because some loan officers don't know what they are doing

Yes this is a good thing ... sort of. I have written many letters and made many phone calls asking for this for many years. Two points (1) no offense intended but a real estate license is useless as a loan officer - two completely different worlds (2) big surprise, loan officers at Federally Chartered Banks will be exempted from the law. Once again the top sticks it in your ear by saying the agencies they protect - I mean regulate - are exempted from the level playing field. This means, once again, mortgage brokers and their employees will be the most highly regulated sector of the industry AND  CONTINUE to have to disclose all of their commission just like they have for decades. But not the big banks - nope. Barney Frank and Christ Dodd made sure to take care of that for you! Just another reason to never go to a big federal bank for a mortgage and to go to the corner mortgage broker. (NOTE TO MIKE PARLE: Loan officers have never had the authority to sign off on or approve a mortgage. That is done by the underwriter who is not required to be licensed.)

It is not required in Virginia but i do agree with it for all loan officers or mortgage brokers.

Clarification: Mortgage Brokers are and have been required to be licensed in all states (Alaska was the final state to require it). The broker is usually the one with the gray hair sitting in the messy office that the callers rarely speak with ;)  Licensing will not insure a loan officer "knows what they are doing" any more than it insures a real estate agent knows what they are doing. It will just mean they can have their ability to work as a loan officer can be taken away.

I think the background check alone is worth this law, think about it a mortgage broker has a lot more sensitive information about our buyers than any Realtor normally does and the fact that they can do identity theft, mortgage fraud or any other fraudulent events throughout a transaction is just scary. Who knows what the background is of some of these mortgage brokers.

BROKERS have ALWAYS had to be licensed. We're talking about licensing loan officers here.

It has always seemed strange to me that mortgage brokers had to be licensed when loan officers did not.  It seems like it is the same model as a real estate brokerage and licensed sales people.  It seems like individual loan officers should have some level of accountability because if they are unlicensed, they could move from company to company without any recourse.