Loan Officer Standards (real estate, credit check, requirements, banks)

[rcarrillo]

Bentlebee's favorite topic:

360 mortgage brokerages don't cut it with Indiana


Many states are getting tougher on loan officer and mortgage broker requirements. This is nothing new, for >5 years North Carolina has required a background and credit check on all mortgage brokers and branch managers need 3 years of experience in the business. I think the education requirements are still a little low, but the background/credit checks have been in place for a long time now... even before the real estate boom.

Maybe this is one reason (of many) that NC has been doing relatively well


One of the best aspects of the new housing bill that no one mentions is that it includes a national registry of mortgage originators. A system has been in the works for years and NC just joined it this year, so it is also nothing new. However the new bill expands who needs to register to include loan officers at many banks and direct lenders... up until now mortgage brokers were the only regulated group. It will be interesting to see if the outcome in Indiana becomes a trend and many other loan officers quit when required to adhere to new standards.