None of the licensing and CE requirements for real estate agents / broker or loan originators is any where near as tough as for appraisers, at least in Maryland. 

Maryland appraisers must complete 150 hours of classroom training and 2000 hours of supervised appraisal work. 

Certified appraisers must complete 2000 hours of classroom training and 2500 hours of appraisal work. 

That's training.

You know Lenn, I'm not sure what the appraisal CE requirements are in Michigan, but I know they require much more time than what is necessary for Brokers and Agents.  I've always been struck by how absurd it was that approximately 1500 hours was required for a barber or hairdresser in Michigan and agents needed only 6 hours per year in addition to the initial 40 hours for pre-licensure. 

Lola, this more openness and licensing with Realtors and Mortgage lenders can only be good for the consumer and the industry long term. I think it is great that Michigan is on board with this.

Lola,

Your last sentence which is also true in Pennsylvania speaks volumes:

"It makes no sense to me that hair dresser and barbers in the State of Michigan still have educational requirements much more stringent than those required for real estate professionals and mortgage lenders."

Thanks,   Fran

Lola - I think this is a good move and will be applauded by the public, being more accountable will be a good thing.

Lola Massachusetts and Rhode Island start to require that Loan Officers be licensed in there State this year and Connecticut is also about to follow.  I believe that this will be a change for the better.

Michigan appraisers must complete 28 hours of continuing education every 2 years which is the renewal cycle ending on July 31 of each year.  I don't know how it breaks down but one would assume about half the appraisers re-license each year.  7 hours of the continuing education must be USPAP class with an additional 2 hours of Michigan law.  Renewal fee is $350.  Beginning in January, 2008, minimum requirements for each appraisal level increased drastically with Certified General requiring a four-year degree or its equivalent.  This is to permit me to place a value on the collateral of a loan.

Why then, could a person with, hopefully, a high school degree, but no further formal training and licensing or regulation, be allowed to guide borrowers through generally the largest financial transaction of their lives and have access to all their personal information from Soc. # to credit card and bank account numbers? 

Good information and long overdue legislation!  The tougher, the better and, although many ethical and caring mortgage bankers will grumble at new requirements, it will strengthen the industry and weed out some of the bad apples.  It should however, go across the board and include banks and credit unions and any other mortgage loan source since the bad apples seem to find the cracks to sneak through.

I have been following this with some interest. I have for a long time thought lenders need to be more responsible. I hope at some point they will take the approval process more seriously and not just hand out pre-approval letters with out doing their jobs.

Richard, appreciate hearing from a Michigan appraiser.   One question...is the Certified General the qualification level which enables an appraiser to determine collateral value on ALL loans including government backed loans such as FHA and VA?

I too was curious as to why the legislation did not include banks.  The nightly news cycle continues to unfold new evidence that regulation in the banking industry is also perhaps in need of an overhaul. Perhaps someone from the banking industry in Michigan will provide some enlightenment.

George...very interesting to see the changes occuring nationwide.  I wonder what the Continuing Education requirements will be?  My suspicion is that the industry that emerges in the aftermath of this turmoil will be substantially different than what we have today.  Education on an ongoing basis is critically important for all professionals.

Terry, thanks for stopping by to read and comment.  I would agree that overall this is a good thing. The 'fake' pre-approval letter is something that has frusterated real estate brokers for a long time.  I'm not sure this will cure that issue...

I work for a bank and I have had about 120 hours of training so far and i have only been with this company since March. Training is a given. Veterans or new LO's are all treated the same with training. Keeps us up to date in an every changing market.

NJ we are licensed Mortgage Solicitors with no formal training, but the cost of the license.

Lola, I did not know you could be a loan officer with a criminal back round.  I used to be a sales person for a temp agency.  We supplied temp to hire to many local banks.  These candidates had to have a back round check and a credit report pulled on them.  If you had bad credit you could not apply for the job.  Their thought process was if you were hurting for cash, maybe a bank is not a good place to work, too much of a temptation. 

I also think we realtors should have more training then we do to become a realtor.  I have often said you should have to work under a sponsor for a year before going it on your own.  That used to be the way many years ago in N. Carolina where I lived.

Luckly Keller Williams where I work has established a year training program, and I think Greenridge has one too.  But some places don't.

Certified General allows valuation of all properties within competency meaning commercial, indusrtial, developments, and all properties over $1 million.  FHA has their own approval process which has been watered down substantially over the past several years and VA has an approval process and maintains its own fee panel of appraisers to whom they rotate the work and oversee.

Hi Lola - You say ..."It makes no sense to me that hair dresser and barbers in the State of Michigan still have educational requirements much more stringent than those required for real estate professionals and mortgage lenders." I must agree! I heard there was a shortage of ZooKeepers in California during the mortgage refi boom because they all became loan originators!

This information will be appreciated by many! Great, timely post!

Lola this is a great start.  we definitely need more regulations for lenders.  It will only help the consumer, Realtor and the legitimate loan officer

Nancy,

I commend you and your bank.  It appears that they have taken a professional approach to the lending process.  Unfortunately, I believe you probably work for a leader in this area which is a result of their professional approach.  I have long felt education betters any industry and have embraced the elevated education requirements placed on appraisers.  Unfortunately in my opinion and observation, too many banks do not pay well enough to allow the best to remain since they prefer to reward the best employees with VP titles and minuscule pay increases.

Nancy, thanks for weighing in with your comment.  I have a question.  Is your bank a norm in New Jersey?  If it is, that is great.  My concern about Michigan is that I don't know if that could be said of all banks loan orginators in our state.

Michelle, appreciate your comment.  What was so startling about this potential 'agent' was that he was currently working with a broker.  I was astounded.  I don't know if his employer checked his background.  What is clear that prior to this new law, it wasn't required.

Richard, thanks for the clarification. 

Mary, Thanks for your comment.  Are you sure about the zoo keepers in California story??? :)

Jeff, Appreciate your comment.

Hi Lola! Not sure if it was true but the account exec's always got a good laugh out of the audience!

I agree that mortgage lenders should have licensing.  Whether it's best with government or a private organization, that's up for debate.  I believe many of the problems with mortgages and brokers in the past has been that basically anyone off the street was starting a mortgage company and many of them skirted requirements and laws because they didn't know and just didn't think it was a big deal.

Education is key for the industry.  My mortgage broker has been licensed with other ogranizations for awhile.

Jared

You are absolutely correct, Working for an upstanding mortgage broker I know we look forward to the changes as it will weed out some of the bad seeds locally, giving us that much more opportunity to shine.  We will gladly step up for any additional training and or licensing without complaint.  Thank you for sharing this information.  

Tracy