In New York state, and soon in many other states, officers that offer personal unsecured 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. When New York passed these regulations in 2006, the federal government passed similar laws in 2008.
Licensing for New York state loans
The New York state regulations aren’t intended for money advance lenders that offer mortgages, but for their employees that actually offer mortgages. As of July 31, any mortgage loan officer who wants to work in New York State must have a license. In order to get this license, an agent must complete a 20 hour training course. The license also needs financial background checks and criminal background checks. Similar laws are set to take effect all over the country in the next few years.
Limiting opportunities for dangerous employees
The Secure and Fair Enforcement for Mortgage Licensing law addresses one very specific problem. The economic recession came about, in part, because of money advance products offered by a certain subset of people. While mortgage companies were licensed, the lenders who worked at them were not required to be. Mortgage loan officers who were known to make no credit loans or bad loans could jump from job to job.By maintaining a record on the lender’s license, states can be able to keep closer tabs.
Relatively weak licensing needs
By addressing issues within the mortgage business, the new law does help, but some are worried it might not be enough. Many 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. The Nationwide Mortgage Licensing System and Registry is providing a search that will help you find a mortgage lender that has a license.
No comments:
Post a Comment