Bank vs Non Bank Loan Officers Licensing from Rob Christman’s 8 Feb Newsletter

Posted on: 02/10/2014

“I am still wondering what the thought process is with the CFPB’s lack of enforcement requiring Loan Officers with bank owned mortgage companies becoming licensed.  As a regional manager, I have interviewed LO candidates who failed their test or background checks for licensing and then they walk down the street to a bank owned lender and go to work.  So how does working for a bank lender make an LO a better qualified LO?  But the more important question I have for the leaders of bank owned mortgage companies; if your bank is committed to providing the best trained loan officers in the mortgage business why doesn’t your bank require your LOs to pass the licensing test, and the same background requirements that each state requires to become licensed?  Why does a government agency have to mandate or make it a regulation for a bank lender to require LO testing if they truly want to provide their customers with the most ethical, knowledgeable and best trained loan offers? All Realtors have to be licensed and all appraisers have to be licensed, so what is the thinking with excluding loan officer with depository lenders?  The issues that brought about Dodd Frank and the CFPB were not restricted to just non depository lenders; the bank lenders were right in the middle of it too.  I think we all want a level playing field and the goal should be to provide the most ethical and knowledgeable loan officer so our consumers are protected! The CFPB is supposed to be all about protecting the consumer; not protecting the banks.”


[Editor’s note: banks, and bank employees, have their own set of rules, background checks, testing, and so on. And they will often argue that their standards are higher than a mortgage banks. But you do bring up a great point, and Dave Stevens, in a speech two days ago, mentioned that reconciling business-specific LO discrepancies is on the MBA’s agenda for 2014. So stay tuned!]




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