Chartered Bank Loan Originators versus SAFE ACT Arizona Licensed Loan Originators? You Make the Choice!
I really like the way that Gary has outlined the licensing requirements between SAFE Act MLO's and Bank MLO's. Although he has posted the info as it pertains to the AZ requirements, here in CA, many MLO's must also be CA DRE licensed and that include an additional 45hrs of continuing education every four years. Just one more thing that CA MLO's are required to do that bank MLO's are not.
When it comes to choosing an MLO, I love Gary's analogy of choosing a CPA or using Turbo Tax. LMAO!
I am sure you have heard about this by now, but if you have not let me share again.
Effective July 1, 2010 all Mortgage Bankers and Mortgage Brokers in the State of Arizona will require their loan originators to be licensed.
Now based on an exemption in the laws the big Interstate Chartered Banks do not require their loan originator working for a big bank such as Chase, Wells Fargo and Bank of America to be licensed.
Now I am not trying to make this into a David versus Goliath story, but I am trying to emphasize the huge differences and implications this change will have on the consumer.
Here is a chart to show the differences:
SAFE ACT AZ LO’s Chartered Bank LO’s Licensed Yes No FBI Background Yes No Fingerprinted Yes No Assurity Bonded Yes No 20 hours upfront education Yes No 8 hours continuing education Yes No Credit checked Yes No Fed and state testing Yes No Complaint mechanism w/ DFI Yes No Licensing fees and renewals Yes No So I think the choice is clear. The funny part is the cost for the service based on rates and fees are about the same. The best analogy I can use is having a choice of working with a CPA vs. Turbo Tax but paying the same price.
Gary Miljour- Mortgage Lending for Tempe Arizona
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