Arizona Law Will Require Loan Officers to be Licensed - In 2010

I'm not a mortgage broker nor do I play one on TV, but I suspect licensing is a step in the right direction. In CA, mortgage brokers can get a real estate license -- which is almost as easy as putting the square pegs in the square holes -- or they can be licensed under the Dept. of Corporations, which involves paying a fee.

A consumer's best approach is education and figuring out which mortgage broker is on the level and which are likely to change the terms of the loan at the last minute or worse, can't perform at all.

See, I reciprocate. :)

Teri it makes a lot of sense to have licensing procedures and surely would at least help clean up some of the riff raff in the field.

Teri, finally!  I strongly believe that the loan officers should have even stricter licensing requirements than  Realtors.  They have more "opportunities" to commit dishonest acts than us.  Plus, they are directly responsible for making financial recommendations to their clients.

Yeah, but I don't wany more featured posts. It wears out my finger to scroll all the way to the bottom and then back up again to re-read a post so I can answer it somewhat intelligently. Notice I said "somewhat."

Teri--I agree wholeheartedly! These laws won't affect the good mortgage people but will hold those that are not so good accountable for their actions.

I see that the FED is also asking for tighter regulations on lenders that will hopefully take away much of the "bad loans" masquerading as great bargains. A good lender will be more able to discern the difference between such loans and properly advise the client.

Finally???  We LO's aren't all that bad without the licensing, why should we have to take classes and do as much class work as realtors?  Just Kidding. ;)

I completely agree Teri and like Chuck eluded to with some LO's, I too look forward to the opportunity to enhance my profession and credibility with the new required licensing. 

Teri,

I think this is absolutely fantastic!  Arizona should have done this years ago.

Mike in Tucson

I've always felt licensing mortgage brokers but not LO's was a bit ridiculous!

Glad to hear the new news.  With so much turmoil in the market and the impact on so many families this is a wise choice.

This is great news for AZ realtors.  Hooray!

Teri, I certainly agree.  If I get employed by a bank, I can immediately start originating mortgages, no training, no studying, etc.  Although many banks might make you get or have a certain amount of mortgage training and info, it isn't a REQUIREMENT.  But if a broker, which does the SAME thing, the license IS  needed. Crazy! While it also might not have prevented our current mortgage problems, maybe better educated LO's will lessen the chances of repeating these issues. I hope all states follow your lead!!