Loan Originator Licensing: The Right Direction
Most of the loan originators (or loan officers) that I know are positive about their new licensing as required by the SAFE Act (a component of the HERA-The Housing and Economic Recovery Act). Most are in the process of getting all their requirements done. It is long overdue.
It is my extreme hope that these licensing requirements will help the lending and real estate industries, their professionalism, and service to our buyer clients. I'm not under any illusion that it will fix all of our problems, but it is the right direction to go.
In Virginia, by July1, 2010, a mortgage loan originator will need to take a 20 hour pre-licensing course (3 hours of federal law and regs, 2 hours of ethics and 2 hours of training related to lending standards for the nontraditional mortgage products), pass a test, pass a financial background check, pass a criminal background check including fingerprinting. They also will have to have a surety bond. Still, fairly low entry, for someone holding all of your financial records, and helping you with maybe the largest purchase of your life.
The right direction, BUT there are holes in the Federal Law: It will be up to individual states to come up with other aspects of their licensing laws, such as continuing education and some sort of remedy or arbitration for clients. The biggest flaw is that some that are exemptions to the law, such as bank employees and credit unions.
Hold everyone to the same standard. Our clients deserve it.
Just some thoughts, I deleted some ranting for your benefit.
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