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NMLS (Nationwide Mortgage Licensing System & Registry) -- SEARCH LENDERS LICENSE STATUS IN YOUR STATE

By
Industry Observer with RETIRED / State License is Inactive Inactive License Oregon

I wish the NMLS Consumer Access Database would have been available a few years ago.

Once upon a time . . .

I was representing a buyer who was moving to the area on a job transfer.  He didn't want to use my referrals for local lenders, and told me he had a buddy who was going to do his loan.

When I called "buddy" the first question I asked was "Are you licensed to write loans in Oregon?"  He told me he was.  This was right when we had a signed offer, and I was going to submit the paperwork to him -- 30 days BEFORE CLOSING!

Well . . . long story short . . . "buddy" wasn't licensed.  I found that out when the loan docs which should have been going out to escrow were delayed.  They were delayed because "buddy" wasn't licensed, who knows what he was trying to do.  There was no way I could protect my client when I'm lied to by the lender -- 5 days BEFORE CLOSING!!

The listing agent was good about having the seller sign the extension to close . . . the first week passed our contractual close date.  The second week passed, and she was still okay'ish.  Third week, they pulled the contract, and sold the property to someone else.  My client couldn't perform.  Period.

Had I known about the NMLS (Nationwide Mortgage Licensing System & Registry) I would have resourced this the minute my client told me about "buddy" loan officer in Ohio.

NMLS (Nationwide Mortgage Licensing System & Registry) -- SEARCH TO VERIFY IF LENDER IS LICENSED IN YOUR STATE

"NMLS Consumer Access, a free service for consumers to confirm that the mortgage company or mortgage professional with whom they wish to conduct business is licensed in their state."

Posted by

 

 

Carla Muss-Jacobs has RETIRED effective May 1, 2018

Representing Buyers in the Portland Metro Real Estate Market | Clackamas Multnomah and Washington Counties | Since 1999

Carla Muss-Jacobs, REALTOR®, ABR, CEBA, ePro
Principal Broker/Owner ~~ INACTIVE

Carla Muss-Jacobs' retirement became effective May 1, 2018

Direct: 503-810-7192 

 

All Rights Reserved © 

Comments (16)

Nevin Williams
Fairway Independent Mortgage Corporation - Cary, NC
Senior Mortgage Advisor

I hear ya on this one!  Luckily- I'm there : )

Sep 26, 2010 04:33 PM
Pat Haddad, ABR, CRS, ePRO, GRI
Keller Williams Indianapolis Metro NE - Carmel, IN
Carmel, Fishers, Westfield IN Real Estate Expert

Carla---I must admit that I squirm in my seat when my buyer wants to use their 'buddy', uncle, etc.  I have lost track of how many times my client would have been cheated and/or left money on the table had I not been watching closely.  However, I NEVER would have thought that I would need to check to make sure the lender is licensed in Indiana.  Thanks for this heads up!  This is one you saved me from having to learn the hard way!!

Sep 26, 2010 04:38 PM
Pat Haddad, ABR, CRS, ePRO, GRI
Keller Williams Indianapolis Metro NE - Carmel, IN
Carmel, Fishers, Westfield IN Real Estate Expert

P.S.  Definitely suggesting this!!

Sep 26, 2010 04:39 PM
Karen Crowson
Coldwell Banker Residential Brokerage - Rancho Bernardo, CA
Your Agent for Change

Great tip. Most of the lenders clients have chosen have been in the state, but you never know when this might come in handy.  Thanks Carla.

Sep 26, 2010 05:11 PM
Glenn Roberts
Retired - Seattle, WA

This is good information to have right now when one's loan might came from anywhere.

Sep 26, 2010 06:14 PM
Jim Hale
ACTIONAGENTS.NET - Eugene, OR
Eugene Oregon's Best Home Search Website

Oh, for the good old days - when all lenders were local

Sep 26, 2010 11:06 PM
Charita Cadenhead
eXp Realty - Birmingham, AL
Serving Jefferson and Shelby Counties (Alabama)

Carla being on the buyer's side is a scary thing when the buyer comes to you with a lender in place that you are not familiar with.  You never know if you'll ever get to closing.  More often than not, I do, but that unfamiliarity can make you squeamish.

Sep 26, 2010 11:35 PM
Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

Considering the number of home sales that fall through because of the buyers' use of loan companies that can't perform, it's a wonder that consumers haven't gotten a clue. 

What am I saying.  Home buyers have little to no knowledge of anything involved in home buying. 

You must first gain their trust and give them good advice. 

One of the proplems is the "buddy" problem with agents referring to cronies.  Consumers don't trust agents' advice any more than lender claims.

Sep 26, 2010 11:58 PM
Dr. Paula McDonald
Beam & Branch Realty - Granbury, TX
Granbury, TX 936-203-0279

Tough lesson learned for the buyer using a buddy!  Thanks for the link to this site.  A very helpful site indeed.

Sep 27, 2010 01:31 AM
Greg Nino
RE/MAX Compass - Houston, TX
Houston, Texas

Very interesting site! I never thought about checking into that. Great post!! Hope you're having a great Monday Carla!

Sep 27, 2010 05:49 AM
Carra Riley & Declan Kenyon
Brokers Guild Cherry Creek Ltd - Westminster, CO
Helping people Transition at all ages!

Carla.......The "I have a friend in the morgage business" is not what it is cracked up to be.  Sad lesson for the buyer in this case.  Thanks for the resource (NMLS) I wasn't aware of it.

Sep 27, 2010 06:35 AM
Carla Muss-Jacobs, RETIRED
RETIRED / State License is Inactive - Portland, OR

Hi Nevin . . . yup, you're licensed in Oregon!! :-)

Hey Pat -- thanks for your comments, and the suggest.  Yeah, we've got to work in our client's best interests, and that does mean (at times) making sure the "buddy" is on the up-and-up.

Hi Karen . . . I've looked up a few lenders I've known, even here locally, and they aren't showing up.  Maybe they're out of the 'biz?!?

Hey Glenn -- exactly. 

Hi Jim . . . LOL

Hey Charita -- I've had those squeamish feelings, and usually I was right.  Got to close . . . by the skin of our teeth.

Hi Lenn . . . Thanks for your comments.  YES, the agent referring to their "buddy" can be equally nauseating.  I have a few lenders, and normally will refer two.  Not sure which is worse, the cronie lender, or the agent who is also a mortgage rep (maybe a topic for another post ;-)

Hey Paula -- it was a lesson, but I'm sure it wasn't learned by the buyer.  He was the type that had it as everyone else's fault.

Hi Greg . . . you're welcome, and Monday is beautiful, thanks!

Hey Carra -- the buyer lost out, I stopped working with him, couldn't seem to get anything through to him.

Sep 27, 2010 07:36 AM
David L. Montgomery
MULAMONT REALTY, LLC - Pontiac, MI
David L. Montgomery

Great information, Carla.  Your deal was bad for you (commission) and good for you (cause he should have followed your advice).  I mean, who's been doing this longer, eh?

Sep 27, 2010 11:58 AM
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Thank you for the good  post. I agree agents should give good advice to their clients.

Sep 27, 2010 10:37 PM
Robert L. Brown
www.mrbrownsellsgr.com - Grand Rapids, MI
Grand Rapids Real Estate Bellabay Realty, West Mic

Great article and worthy of a reblog. Out of state lenders just give me the shivers.

Sep 28, 2010 07:39 AM
Renée Donohue~Home Photography
Savvy Home Pix - Allegan, MI
Western Michigan Real Estate Photographer

Bookmarking!  Great stuff!  I am with Robert (#15) out of staters do give me the shivers!

Sep 28, 2010 09:05 AM