Following the release of the QM and Ability to Repay rules from CFPB, I decided to try to read through the proposed Loan Originator Compensation rules. I found this pretty interesting. Instead of making additional regulations for Mortgage Originators who work at banks or credit unions, why not just make them subject to the SAFE Act and require them be licensed?
Happy New Year! Is your Loan Officer Legal?
January 1, 2013 by 2 Comments
Mortgage originators (also referred to as Loan Officers or MLOs) are required to be licensed with the NMLS unless they work for a depository bank or credit union, in which case they are only required to be “registered” (per the SAFE Act).
Back to School!
September 20, 2012 by Leave a Comment
Today I’m doing something that mortgage originators who work for banks and credit unions don’t have to do: continuing education with an NMLS certified instructor.
As a Licensed Mortgage Originator, every year I’m required to take 8 hours of continuing education – non-licensed (aka registered) mortgage originators are currently not required to. I hope this changes and I expect it will.
Why there are different standards for mortgage originators who take residential loan applications is due to the SAFE Act. My suspicion is that powerful banks and credit unions lobbied their Congressmen to have softer rules for their mortgage originators…which they have. (Whenever a mortgage originator at a bank tries to say they are already regulated, I like to point to Washington Mutual). My personal opinion is that banks want to hire less experienced mortgage originators so they can pay them less since they are “bank fed” leads.
Any how, I always look forward to my “class” as my instructor is Jillayne Schlicke and her classes are always informative and very interesting.
I will be back to work tomorrow, Thursday, September 21, 2012.
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