In New York state, and soon in numerous other states, officers that offer personal loan products for instance mortgages are now subject to new regulations. These regulations are intended to help customers in need of large or small loans protect themselves from unscrupulous agents. These licensing laws were passed in 2006 in New York, and comparable ones were passed federally in 2008.
Licensing for New York state loans
The employees that actually offer mortgages while working for money advance lenders that offer mortgages are the target of this regulation. As of July 31, any mortgage loan officer who wants to work in New York State must have a license. Getting this license requires a 20 hour course in responsible lending. The license also requires financial background checks and criminal background checks. Similar laws are set to take effect all over the country within the next few years.
Addressing loan job jumpers
One very specific problem is addressed by this Secure and Fair Enforcement for Mortgage Licensing law. The economic recession came about, in part, because of money advance products offered by a certain subset of people. You didn’t need a separate certification if you worked for an employer that had a mortgage license. Mortgage loan officers who were known to make no credit loans or bad loans could jump from job to job.States can keep closer tabs on mortgage lenders with these licenses.
Questions about licensing needs
While the reform that has been implemented as of July 31 addresses numerous issues in the mortgage business, some are questioning the needs. Numerous licensed professionals say that 20 hours is not enough training. In most states, licensed professions require a minimum of 75 hours or more of training. Either way, the Nationwide Mortgage Licensing System and Registry is now providing a search for borrowers to identify whether they’re working with a licensed mortgage lender.
