Comments on: Thoughts on National Loan Officer Licensing… http://blogs.doublepositive.com/2007/07/19/thoughts-on-national-loan-officer-licensing/ DoublePositive | LIVE Hot Transfers Leads Wed, 08 Feb 2012 19:34:53 +0000 hourly 1 http://wordpress.org/?v=3.0.4 By: Dannette http://blogs.doublepositive.com/2007/07/19/thoughts-on-national-loan-officer-licensing/#comment-70 Dannette Thu, 13 Sep 2007 16:45:14 +0000 http://blogs.doublepositive.com/2007/07/19/thoughts-on-national-loan-officer-licensing/#comment-70 I am a licensed broker and lo in Ohio. I favor licensing if not for fact to get some of the people who jumped into this industry with both feet to get rich quick. I have been in the industry going on 17 years now. The biggest issue with the whole licensing things is: no mattter what kind of licensing you do, it is the ethics that is a problem. National licensing will get rid of some of these jerks in the industry that give us all a black eye, however, the states licensing these people has got to be accountable for following up on complaints. For example, we had a client come to my office "after" he had closed asked if I could undo what was done. Of course I could not. The guy bought a $45000. 00 house was charged $18000 in fees and his payment was over $1000.00. The lender funding the loan was as much at fault, but the poor guy could not help but be dismayed and of course I could do nothing. One thing that might help, when the state agencies come to audit your office they call you and tell you they will be there next week on Wed at 9:00am. (that gives that unethical broker/lo plenty of time to clean up their bad deeds) The agencies should not tell anyone when they are coming and show up. Some of the unethical stuff will be brought to the states attention. Another things is to make the title agent/auditor/appraiser as much a tattle tale as anyone, if something unethical is brought to their office. They should have an outlet to contact someone, they are part of the process and in some cases part of the problem. I encourage the state/national level to go forward but at least put some guidelines in place and spend some of that licensing money on doing thier job of follow up and follow through. I am a licensed broker and lo in Ohio. I favor licensing if not for fact to get some of the people who jumped into this industry with both feet to get rich quick. I have been in the industry going on 17 years now. The biggest issue with the whole licensing things is: no mattter what kind of licensing you do, it is the ethics that is a problem. National licensing will get rid of some of these jerks in the industry that give us all a black eye, however, the states licensing these people has got to be accountable for following up on complaints. For example, we had a client come to my office “after” he had closed asked if I could undo what was done. Of course I could not. The guy bought a $45000. 00 house was charged $18000 in fees and his payment was over $1000.00. The lender funding the loan was as much at fault, but the poor guy could not help but be dismayed and of course I could do nothing.
One thing that might help, when the state agencies come to audit your office they call you and tell you they will be there next week on Wed at 9:00am. (that gives that unethical broker/lo plenty of time to clean up their bad deeds) The agencies should not tell anyone when they are coming and show up. Some of the unethical stuff will be brought to the states attention. Another things is to make the title agent/auditor/appraiser as much a tattle tale as anyone, if something unethical is brought to their office. They should have an outlet to contact someone, they are part of the process and in some cases part of the problem.
I encourage the state/national level to go forward but at least put some guidelines in place and spend some of that licensing money on doing thier job of follow up and follow through.

]]> By: Bob http://blogs.doublepositive.com/2007/07/19/thoughts-on-national-loan-officer-licensing/#comment-69 Bob Wed, 12 Sep 2007 17:31:58 +0000 http://blogs.doublepositive.com/2007/07/19/thoughts-on-national-loan-officer-licensing/#comment-69 I can see no reason why a national, consistent licensing strategy would be a problem for anyone in this business, broker or banker. At present there are a large number of states that require no licensing at all and many are restrictive in allowing people from other states to close loans in them. In my mind this makes no sense. Today's world requires moves to various states and when my clients want me to find a loan for them, in say Florida or Hawaii or Texas, why am I not able to perform that function seamlessly? Education requirements and licensing for all is the answer. Like it or not if we are ever going to be a "profession". I can see no reason why a national, consistent licensing strategy would be a problem for anyone in this business, broker or banker. At present there are a large number of states that require no licensing at all and many are restrictive in allowing people from other states to close loans in them.
In my mind this makes no sense. Today’s world requires moves to various states and when my clients want me to find a loan for them, in say Florida or Hawaii or Texas, why am I not able to perform that function seamlessly?
Education requirements and licensing for all is the answer. Like it or not if we are ever going to be a “profession”.

]]> By: Brazos http://blogs.doublepositive.com/2007/07/19/thoughts-on-national-loan-officer-licensing/#comment-68 Brazos Wed, 01 Aug 2007 16:37:17 +0000 http://blogs.doublepositive.com/2007/07/19/thoughts-on-national-loan-officer-licensing/#comment-68 I think they should audit the Brokers quarterly, as well as the Banks. If Brokers are required to get their license so should originators at the banks. Also, why don't they regulate car dealerships too. What about people that have their license for money laundering, aggravated assault and drug dealers. What about people that have been fired for fraud or shredding documents? These guys/girls now are licensed because they weren't caught and served time. My point is this-when someone has made a six figure income for 8 years, and they've had trouble in their past over 30 years ago-now they can't get their license in the Lone Star State because of all the other crooks. What type of business should that person do now? Why don't we take a vote and ask the consumers what they want? No, one asked them to lie -and beg for that house. Maybe those guys that made all that money at CW-AMQ, bla, bla should come back and refi them out of those ARMs again, but pay their employees the money that they deserved instead of a few thousand bucks. I think they should audit the Brokers quarterly, as well as the Banks. If Brokers are required to get their license so should originators at the banks. Also, why don’t they regulate car dealerships too.
What about people that have their license for money laundering, aggravated assault and drug dealers. What about people that have been fired for fraud or shredding documents? These guys/girls now are licensed because they weren’t caught and served time. My point is this-when someone has made a six figure income for 8 years, and they’ve had trouble in their past over 30 years ago-now they can’t get their license in the Lone Star State because of all the other crooks. What type of business should that person do now? Why don’t we take a vote and ask the consumers what they want? No, one asked them to lie -and beg for that house. Maybe those guys that made all that money at CW-AMQ, bla, bla should come back and refi them out of those ARMs again, but pay their employees the money that they deserved instead of a few thousand bucks.

]]> By: Judy Rainsberger http://blogs.doublepositive.com/2007/07/19/thoughts-on-national-loan-officer-licensing/#comment-67 Judy Rainsberger Mon, 30 Jul 2007 19:03:44 +0000 http://blogs.doublepositive.com/2007/07/19/thoughts-on-national-loan-officer-licensing/#comment-67 The Natl. system, I think would help in some respects. for more uniformity, which is definitely something that is not in place now. The guidelines need to be the same across the board on some loans, Is someone going to give the lenders the guidelines to lend with? What would be wrong with a temporaty freeze on rates, prices, and above all mortgage increases on variable rates products. You cant tell me these banks cant do something to HELP. If the thought is to TRULLY turn this around, then enact a freeze, or grant extensions, or workout loans for a year possibly, something to help with the present mortgages. These lenders ARE able to do something. Yes, I agree there are some lenders out there that are not worthy of license, as well as some brokers. But there are also cases where, Why do customers sign for loans when their payments and/or rates are "Way" off from what the officer told them? Shame on them and those people I dont feel sorry for. It takes maybe 50-100 to work an account on a yearly basis, when current, but 2500+ for a foreclosure, eveyone cant be bad people for what they did on their home refinances or purchases. If we dont try and handle this situation now and do something things will only get worse, instead of better. America will soon be the "land of the homeless" The Natl. system, I think would help in some respects. for more uniformity, which is definitely something that is not in place now. The guidelines need to be the same across the board on some loans, Is someone going to give the lenders the guidelines to lend with? What would be wrong with a temporaty freeze on rates, prices, and above all mortgage increases on variable rates products. You cant tell me these banks cant do something to HELP. If the thought is to TRULLY turn this around, then enact a freeze, or grant extensions, or workout loans for a year possibly, something to help with the present mortgages. These lenders ARE able to do something. Yes, I agree there are some lenders out there that are not worthy of license, as well as some brokers. But there are also cases where, Why do customers sign for loans when their payments and/or rates are “Way” off from what the officer told them? Shame on them and those people I dont feel sorry for. It takes maybe 50-100 to work an account on a yearly basis, when current, but 2500+ for a foreclosure, eveyone cant be bad people for what they did on their home refinances or purchases. If we dont try and handle this situation now and do something things will only get worse, instead of better. America will soon be the “land of the homeless”

]]> By: Brad http://blogs.doublepositive.com/2007/07/19/thoughts-on-national-loan-officer-licensing/#comment-66 Brad Fri, 27 Jul 2007 14:48:48 +0000 http://blogs.doublepositive.com/2007/07/19/thoughts-on-national-loan-officer-licensing/#comment-66 Reading the first 16 posts, I agree with bits of what everybody has said. I am a mortgage originator for one of the largest banks in the country. I also have 13 years of brokering mortgages prior to moving to the bank. Two things you need to know about the bank: I was surprised that I did NOT need a license to work at the bank and second, they train us like crazy. I have never been through so much training in my life. A national licensing regulation is fine, but the bank employees should take it like everyone else. Good thing for me is that I will have already had all the training I need to pass the test, no matter how hard it is. I don't think this is a broker vs. bank issue. Some folks here and in Congress are trying to blame the mortgage lenders for the foreclosure mess, but remember this- the loan officer talked the borrower into the loan, not the lender. Loan fraud is on the rise and again, I don't think that is the fault of the lender either, bank or not. Admit it, the refi boom brought some scum-bags into our business because they follow the money. License or no license, they came anyway and a state regulation with no teeth is not going to stop them. Licenses for real estate salespersons, brokers, and loan officers in most states are WAY TO EASY to get and hence, half these folks have no business being in this profession. We handle and advise our clients about more money and important things then most lawyers and you know how hard it is to become a lawyer. (If you don't, try looking over a Bar Exam...) Consumer education is very important and needs to have a place in solving the problem too, because contrary to what DiTech says, "people" are NOT smart and a worker in fast food will sign up for a rotten mortgage just as fast as a doctor. Another thing everyone needs to remember is that lenders will develop loan products that they think will be profitable and that is why they are in business. Remember the free market people? Mortgage lenders are not pimping bad products. If they can sell them in the secondary market, then they will and let the secondary market take the risk- oh wait, that's what happened and now look who's loosing billions of dollars. Let's keep each part of the giant mess into its respective corner and handle each one properly. If they try to write a national licensing law for loan officers and expect it to solve the problem that caused the non-prime market meltdown, they are sorely mistaken. The mess we see in the country today is the convergence of greed, lack-of-ethics, lack-of-responsibility, and stupidity. Hey, just like in President Bush's office- what a coincidence... Reading the first 16 posts, I agree with bits of what everybody has said. I am a mortgage originator for one of the largest banks in the country. I also have 13 years of brokering mortgages prior to moving to the bank.

Two things you need to know about the bank: I was surprised that I did NOT need a license to work at the bank and second, they train us like crazy. I have never been through so much training in my life.

A national licensing regulation is fine, but the bank employees should take it like everyone else. Good thing for me is that I will have already had all the training I need to pass the test, no matter how hard it is.
I don’t think this is a broker vs. bank issue.

Some folks here and in Congress are trying to blame the mortgage lenders for the foreclosure mess, but remember this- the loan officer talked the borrower into the loan, not the lender. Loan fraud is on the rise and again, I don’t think that is the fault of the lender either, bank or not.

Admit it, the refi boom brought some scum-bags into our business because they follow the money. License or no license, they came anyway and a state regulation with no teeth is not going to stop them.

Licenses for real estate salespersons, brokers, and loan officers in most states are WAY TO EASY to get and hence, half these folks have no business being in this profession. We handle and advise our clients about more money and important things then most lawyers and you know how hard it is to become a lawyer. (If you don’t, try looking over a Bar Exam…)

Consumer education is very important and needs to have a place in solving the problem too, because contrary to what DiTech says,
“people” are NOT smart and a worker in fast food will sign up for a rotten mortgage just as fast as a doctor.

Another thing everyone needs to remember is that lenders will develop loan products that they think will be profitable and that is why they are in business. Remember the free market people? Mortgage lenders are not pimping bad products. If they can sell them in the secondary market, then they will and let the secondary market take the risk- oh wait, that’s what happened and now look who’s loosing billions of dollars.

Let’s keep each part of the giant mess into its respective corner and handle each one properly. If they try to write a national licensing law for loan officers and expect it to solve the problem that caused the non-prime market meltdown, they are sorely mistaken.

The mess we see in the country today is the convergence of greed, lack-of-ethics, lack-of-responsibility, and stupidity.

Hey, just like in President Bush’s office- what a coincidence…

]]> By: Linda http://blogs.doublepositive.com/2007/07/19/thoughts-on-national-loan-officer-licensing/#comment-65 Linda Thu, 26 Jul 2007 22:04:58 +0000 http://blogs.doublepositive.com/2007/07/19/thoughts-on-national-loan-officer-licensing/#comment-65 Licensing by testing is a nice try. I take several tests for the compliance of the states that require them and don’t mind at all. However, I have not heard that those states have less of an issue with foreclosure or fraud than those that do not have testing requirements. While training, competency and background checks need to be in place to keep the “bad guys” out of Dodge, there is always a loophole for these types. Remember, drunk drivers and safe drives take the same licensing test; the rates of DUI are unchanged by the testing/licensing procedure. To my old blonde brain, it seems that folks who would benefit the most from education and testing would be the consumer. A few hours in high school would at least familiarized the uniformed public about credit and what happens when you don’t, cant or won’t pay any bill, including your mortgage. You want to buy a house? Take the test to see if you have what it takes! After all isn’t that what current lynch mob regulators are expecting us to discern? Are we not being blamed for lending to those who asked for the loan and are now complaining that they got it? Licensing by testing is a nice try.
I take several tests for the compliance of the states that require them and don’t mind at all. However, I have not heard that those states have less of an issue with foreclosure or fraud than those that do not have testing requirements.
While training, competency and background checks need to be in place to keep the “bad guys” out of Dodge, there is always a loophole for these types.

Remember, drunk drivers and safe drives take the same licensing test; the rates of DUI are unchanged by the testing/licensing procedure.

To my old blonde brain, it seems that folks who would benefit the most from education and testing would be the consumer.

A few hours in high school would at least familiarized the uniformed public about credit and what happens when you don’t, cant or won’t pay any bill, including your mortgage.

You want to buy a house? Take the test to see if you have what it takes!

After all isn’t that what current lynch mob regulators are expecting us to discern? Are we not being blamed for lending to those who asked for the loan and are now complaining that they got it?

]]> By: Frank J Nese Sr http://blogs.doublepositive.com/2007/07/19/thoughts-on-national-loan-officer-licensing/#comment-64 Frank J Nese Sr Thu, 26 Jul 2007 18:45:11 +0000 http://blogs.doublepositive.com/2007/07/19/thoughts-on-national-loan-officer-licensing/#comment-64 Standardazation is a great idea if only one entity held the raines and created standardized legislation as well. Which should be the feds. What is available now is a mix of standards from one State to another, very confusing and expensive. If the above applied it should override all mass confusion created by States. This idea has been floated in the past it appears the States do not want to give up their control of lisensing or legislation for what ever reasons. If you find a way for us to follow one set of guiidelines for every State including lis as well as agents I would be for all this. Standardazation is a great idea if only one entity held the raines and created standardized legislation as well. Which should be the feds.

What is available now is a mix of standards from one State to another,
very confusing and expensive. If the above applied it should override all mass confusion created by States.

This idea has been floated in the past it appears the States do not want to give up their control of lisensing or legislation for what ever reasons.

If you find a way for us to follow one set of guiidelines for every State including lis as well as agents I would be for all this.

]]> By: Rodney Brooks http://blogs.doublepositive.com/2007/07/19/thoughts-on-national-loan-officer-licensing/#comment-63 Rodney Brooks Thu, 26 Jul 2007 17:46:35 +0000 http://blogs.doublepositive.com/2007/07/19/thoughts-on-national-loan-officer-licensing/#comment-63 I always hoped that licensing would wash out some of the bad apples in our industry. Somehow, I can't help but feel there is a great potential for national licensing to completely miss the mark. I'm afraid the little guy may end up getting the shaft in the long run. Still, I would like to see the "bad guys" out of the business. I really must admit though, I like incompetent loan officers. When a realtor has a poor experience with some incompetent LO and I deliver exceptional service on time, I earn their business for life. I always hoped that licensing would wash out some of the bad apples in our industry. Somehow, I can’t help but feel there is a great potential for national licensing to completely miss the mark. I’m afraid the little guy may end up getting the shaft in the long run. Still, I would like to see the “bad guys” out of the business.

I really must admit though, I like incompetent loan officers. When a realtor has a poor experience with some incompetent LO and I deliver exceptional service on time, I earn their business for life.

]]> By: bolatito http://blogs.doublepositive.com/2007/07/19/thoughts-on-national-loan-officer-licensing/#comment-62 bolatito Thu, 26 Jul 2007 17:33:09 +0000 http://blogs.doublepositive.com/2007/07/19/thoughts-on-national-loan-officer-licensing/#comment-62 i agree with the licensing thing, just as the real estate agent are required to seat for a test and we should be accounted for that also. it will sift through the crooks and unserious loan officers!!!!!!!!!!! i agree with the licensing thing, just as the real estate agent are required to seat for a test and we should be accounted for that also. it will sift through the crooks and unserious loan officers!!!!!!!!!!!

]]> By: Marilyn Moo http://blogs.doublepositive.com/2007/07/19/thoughts-on-national-loan-officer-licensing/#comment-61 Marilyn Moo Thu, 26 Jul 2007 17:00:30 +0000 http://blogs.doublepositive.com/2007/07/19/thoughts-on-national-loan-officer-licensing/#comment-61 I think mortgage loan officers should be licensed to get the unethical people off the streets. I think mortgage loan officers should be licensed to get the unethical people off the streets.

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