LOAN OFFICERS WORKING FOR BANKS DON'T HAVE TO BE LICENSED
Joe Petrowsky - makes some excellent comments regarding the difference between getting your mortgage funding from a bank or a licensed mortgage loan officer. As he says, the biggest difference is "you don't get me."
“Loan Officers Working for Banks Don’t Have to be Licensed”
From time to time, I am asked what makes you different than getting a loan from a bank. I am always very comfortable answering the question. The first thing that I explain, if you go to a bank you don’t get me. That any loan officer that works for a bank doesn’t have to be licensed and I do. I explain the licensing process, which normally blows people away. That pretty much ends all questions about my me vs. a bank.
A couple of years ago, a Realtor contacted me. He told me that someone I did a preapproval for, wants to purchase a home through his office, but he had never heard of me or my company. He told me that his office has an in house loan officer and she had apparently met with these clients and told them they can’t qualify for a mortgage.
I told the Realtor, that if I gave these buyers a preapproval I can get them a mortgage. That is, as long as nothing changed, as far as credit and income. He asked me to double check with the clients and contact him after the discussion. A couple of hours later, I called saying the clients are good to go.
A month later we closed the mortgage and I have been working with the Realtor ever since. He became a believer, in you don’t get me.
Roughly 130,000 LOs Working at Five Large Banks
By: Brian Collins
New figures compiled by the National Mortgage Licensing System show a wide difference between the operations of state-licensed mortgage companies and depository mortgage lenders.
State-licensed companies are generally small businesses and operate in local markets, according to Conference of State Bank Supervisors executive vice president Bill Matthews.
CSBS this week released a NMLS report showing that 83% of the 15,883 state-licensed mortgage companies operate in only one state and 72% of these firms employ one to five loan officers (originators).
Only 11 state-licensed lenders have more than 500 mortgage loan officers, according to the first-quarter NMLS report on state-licensed lenders.
Among the 10,575 federally insured depositories and their mortgage subsidiaries, 53 institutions have more than 500 LOs. And five of those federally insured institutions employ a total of 130,000 LOs, the Federal NMLS Quarterly Report says. (The bank numbers tend to be exaggerated because banks register non-LOs in the system, including processors and underwriters.)
Meanwhile, there are only 105,600 state-licensed LOs working for mortgage companies and brokerages in all 50 states.
“There is an incredibly high concentration of registered LOs working at a small number of banks,” Matthews told National Mortgage News.
Overall, there are 379,600 loan officers working for depository institutions.
In 2008, Congress passed the SAFE Act that requires bank and state-licensed LOs to register with the National Mortgage Licensing System & Registry. Matthews is president of a CSBS subsidiary called the State Regulatory Registry that maintains the registry’s website and issues the quarterly NMLS reports.
image:nokhoog_buchachon/freedigitalphotos.net
Joe Petrowsky, NMLS #6869
Right Trac Financial Group, Inc. NMLS #2709
110 Main St.
Manchester, Ct. 06042
Office: 860 647-7701 x16
Fax: 860 647-8940
Cell: 860 836-9294
Email: joe@righttracfg.com
Joe Petrowsky does not guarantee nor is in any way responsible for the accuracy of the information provided herein, and provides said information without warranties of any kind, either expressed or implied.
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