In numerous states, personal bank loan products are being subjected to new regulations, mostly based around who offers them. These regulations are intended to help customers in need of large or small loans protect themselves from unscrupulous agents. These licensing laws were passed in 2006 in New York, and comparable ones were passed federally in 2008.
Licensing loan officers in New York
The New York state regulations aren’t intended for cash 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. 20 hours of training are required for this licensing. The license also requires financial background checks and criminal background checks. Around the country, similar laws will be taking effect within the next few years.
Loans offered by bad employees limited
One very specific problem is addressed by this Secure and Fair Enforcement for Mortgage Licensing law. Many of the bad loans and fast cash advance products that contributed to the economic downfall came from a unique subset of lenders. You didn’t need a separate certification if you worked for an employer that had a mortgage license. Many loan officers who made no credit loans would jump from job to job after fired for making bad loans.By maintaining a record on the lender’s license, states can be able to keep closer tabs.
Light licensing requirements
By addressing issues within the mortgage business, the new law does help, but some are worried it might not be enough. Some individuals think that 20 hours of training won’t be enough. There is a minimum of 75 hours of professional training for most licenses. The Nationwide Mortgage Licensing System and Registry is providing a search that will help you discover a mortgage lender that has a license.
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