Regulators are actually not helping our unemployment problem (Raleigh: foreclosures, insurance)

[lawrence260]

I would like to hear the opinions of getting licensed with bad credit. Our state regulatory commission here in NC require that you have a score of 600 with no foreclosures. I understand the point is you dont want anyone giving advice on a financial decision if your finances are not in order.

I was turned down for a great job based on my current credit. I had perfect credit and owned my own RE firm until the end of 08. Deals dried up, had property in FL, that I couldnt keep or sell. Basically I was one of many that it just snowballed on me.

My frustration is, that would have no influence on me as a lender, insurance, or advisor in my eyes. Thats was the licensing classes and such is to teach is for lenders, advisors, to advise is based on.

With our economy and jobs in shambles, millions of Americans such as me cant get into a career, such as insurance, Financial Advisement, and Lending, which is what I know.

The percentage of professionals with unsatisfactory credit was changed dramatically since the recession, and our regulators have made it even more difficult for those to obtain careers, while it was the lack of regulation that got in the spot we are in. While the professional is penalized for it even more so.

How long is it going to be for everyone to be discriminated against for credit for jobs, while our unemployment is so high. So they make it tougher for the millions of suffered through the recession?

Finally, has anyone dealt with this and overcome it?

[zthatzmanz28]

Preaching to the choir...don't think there is a way to overcome it other than rebuild your credit...but you need a job to do that -- but you need credit to get the job---vicious cycle huh?

[lawrence260]

Funny thing is I never disclosed personal information until they ask. 3 times now, I was told we would love to have you, that your what we are looking for. OH wait, now we need to see your credit. Its not the companies itself, BUT the regulatory commissions!

Originally Posted by zthatzmanz28

Preaching to the choir...don't think there is a way to overcome it other than rebuild your credit...but you need a job to do that -- but you need credit to get the job---vicious cycle huh?

[Time2Travel]

Symptom of government over-regulation. I remember the good ole days when credit scores were used for loan risk. I had this conversation with my auto insurance provider just a few days ago. They wanted my social security number and I told them they would get my NC drivers license number and nothing more or I would shop for insurance elsewhere. Like my credit score has anything to do with the way I drive a car. I imagine your credit score has nothing to do with how you would perform at a job but the government rarely applies common sense to problem solving.

[lawrence260]

As a 30 year old, I wish I grew up in those good ole days.

Originally Posted by Time2Travel

Symptom of government over-regulation. I remember the good ole days when credit scores were used for loan risk. I had this conversation with my auto insurance provider just a few days ago. They wanted my social security number and I told them they would get my NC drivers license number and nothing more or I would shop for insurance elsewhere. Like my credit score has anything to do with the way I drive a car. I imagine your credit score has nothing to do with how you would perform at a job but the government rarely applies common sense to problem solving.

[North_Raleigh_Guy]

Originally Posted by Time2Travel

I imagine your credit score has nothing to do with how you would perform at a job[...

I would have to disagree given the OP is looking to work as a lender, insurance, or advisor. I think earning a low credit score through bad investment decisions or property foreclosures should be a consideration in giving out a license to practice in certain fields.

If not, just how low of a bar would you have them set before you allow them to completely undermine the credibility of the profession?

[lawrence260]

There are alot of factors that could come into play. I had one house, savings, I was 28 when I bought the house. UP until then I had a 740 credit score. I fought to stay afloat, but my profession was in the middle of the crisis.

What if I was older with 25 years of savings I could have fallen back on? What if I decided to go into corporate america and survived the layoffs?

What about the good strong people that had great jobs and were laid off, and now have lost their homes?

Is this really a litmus test to ones intelligence to work? If anyone I can say I feel that I would better suited for it for enduring it.

Having said that, make getting licensed more tough, make them take ethics classes as part of it. Whatever- just dont hamper one because the greedy practices that got us in this in the first place.

Originally Posted by North_Raleigh_Guy

I would have to disagree given the OP is looking to work as a lender, insurance, or advisor. I think earning a low credit score through bad investment decisions or property foreclosures should be a consideration in giving out a license to practice in certain fields.

If not, just how low of a bar would you have them set before you allow them to completely undermine the credibility of the profession?

[Time2Travel]

Originally Posted by North_Raleigh_Guy

I would have to disagree given the OP is looking to work as a lender, insurance, or advisor. I think earning a low credit score through bad investment decisions or property foreclosures should be a consideration in giving out a license to practice in certain fields.

If not, just how low of a bar would you have them set before you allow them to completely undermine the credibility of the profession?

I think a job history and a criminal background check would cover it. Of course I'm operating under the assumption that the best way to determine someones ability to do a job is based on their past work history.

[North_Raleigh_Guy]

Originally Posted by Time2Travel

I think a job history and a criminal background check would cover it.

In most cases I would tend to agree. However if the job involves advising on investments or judging good loan prospects I think an understanding of the candidates personal financial history can and should be a factor.

For the types of jobs to OP described, just looking at job history and doing a criminal background check and ignoring financial history is turning a blind eye to some potentially big issues, erodes professional credibility (for these kinds of jobs) and sets the bar on the ground IMO.

[lawrence260]

I am not totally against it not being a factor, but the fact that my credit worthiness was way above par before the recession should be accounted for.

What got us in the mess was not lack of knowledge but greed, and unethical practices.

I assume that a kid straight out of college in his first job, would be better suited? I have been involved over 300 transaction in my career, and know why lenders are so tightly regulated now, and it all boils down to ethics. I know how to improve the industry based on my experience. I could have been lucky and never bought in Florida where my home value wasnt cut in half, or even been invloved in the RE industry. Should I have been wise enough to have a crystal ball to foresee the mess ahead?

Originally Posted by North_Raleigh_Guy

In most cases I would tend to agree. However if the job involves advising on investments or judging good loan prospects I think an understanding of the candidates personal financial history can and should be a factor.

For the types of jobs to OP described, just looking at job history and doing a criminal background check and ignoring financial history is turning a blind eye to some potentially big issues, erodes professional credibility (for these kinds of jobs) and sets the bar on the ground IMO.