Loan Officer Licensing may be a required very soon in all states. Loan Officer Licenses among other things have been introduced to in the Congress as a may to reduce fraud and increase responsiblity nationwide. If passed, this bill would require all states that do not currently have a loan officer licensing scheme to set one up. Over 30 states have already adopted a license scheme for loan officers in the last 5 years. This bill may force the remaining states to follow suit. With the Nationwide Mortgage Licensing System being organized at the same time, it could all come together very nicely to make it simple to obtain the loan officer licenses needed for each state.
Representatives Introduce Mortgage Reform Legislation
Representatives Brad Miller (D-NC), Mel Watt (D-NC) and Barney Frank (D-MA)
introduced “The Mortgage Reform and Anti-Predatory Lending Act of 2007” on
October 22, 2007.
Key provisions of the legislation include:
· Establishment of a federal “duty of care;”
· Required licensing for all mortgage originators, including brokers
and bank officers;
· Minimum standards to ensure a borrower’s ability to repay;
· Expanded and enhanced consumer protections for high cost loans under
the Home Ownership and Equity Protection Act (HOEPA); and
· Foreclosure protection for renters.