This website was just brought to my attention. Fraud Problem has an updated list naming individuals who have been denied a Loan Originator License for the State of Washington. DFI posts the same information.
The largest benefit of Washington State’s licensing law for loan originators who are employed by a Mortgage Broker is that the bar of entry has been raised. It’s true that prior to this law, one just needed to fog a mirror to be a LO. It didn’t matter if they were a felon, had committed fraud or if they were competent.
Over the past month, I’ve had individuals who have received bad advice and have also relied on a "bad actor" instead of a Mortgage Professional for the financing of their homes. Here’s a link, also from Fraud Problem, on what to do if you have a complaint from working with a "bad actor". Here is DFI’s link to file a complaint.
Since mortgage brokers and mortgage bankers are regulated by different entities, it can be tricky and take some work to find out where your complaint should reach.
I want my industry to be cleaned up. Helping people with the financing of their home and proper managing of their mortgage is a noble profession.
If you consider that 70 are listed on Fraud Problem’s site and there are an estimated 15,000 loan originators…simple math tells you that 0.5%* of the industry were unsavory. I’m not defending the "bad actors" in any way, I am standing up for the 99.5% of us in Washington State who are good.
*I’m sure this figure will increase as the background checks continue…however, the good will out number the bad.