The proposed "Secure and Fair Enforcement in Mortgage Licensing Act", aka SAFE, would establish national licensing standards for mortgage brokers and loan officers. In California (not sure about how other states handle lending practices), there is no current licensing requirement for loan officers. The loan officer that I normally refer my clients to, Marlena Olson, actually does have a Real Estate license issued by the California Department of Real Estate...however she is the exception to the rule...
I think this legislation is long overdue. It will ensure that all mortgage professionals are trained in legal aspects of lending, ethics, and consumer protection. In addition, I think it will separate true professionals from the folks who looked to make a quick buck in the industry.
Part of the licensing requirements will include classroom study, DOJ background check, and passing a written exam.
I like it. There are many loan officers out there that really have no clue what they are doing. To read more regarding this proposed legislation, click here.
In Texas they need to have a license. It is good for 2 years at a time. Then they have to take a class to renew.
J.
It is a State control vs Federal control issue. That is why Brokers are already being licensed, but employees of the big banks don't have to be. I think most States would love to be able to have some oversight of the individual loan officers too, but that is a Big Fight, as fas as I understand.
It is not required in Virginia but i do agree with it for all loan officers or mortgage brokers.
I think the background check alone is worth this law, think about it a mortgage broker has a lot more sensitive information about our buyers than any Realtor normally does and the fact that they can do identity theft, mortgage fraud or any other fraudulent events throughout a transaction is just scary. Who knows what the background is of some of these mortgage brokers.