The individuals who offer personnel loan products are now subject to new regulations. Agents that offered both large and small loans that weren’t up to snuff are the target of these regulations. In 2008, the federal government passed regulations comparable to New York’s 2006 law. Post resource – Mortgage loan officers subject to new lending regulations by Personal Money Store.
Licensing loan officers in New York
The employees that really offer mortgages when working for money advance lenders that offer mortgages are the target of this regulation. As of July 31, any mortgage loan officer who wants to work in New York State must have a license. Getting this license requires a 20 hour course in responsible lending. Financial, criminal, and knowledge tests are also required for the license. Similar laws are set to take effect all over the country in the next few years.
Addressing loan job jumpers
The Secure and Fair Enforcement for Mortgage Licensing law addresses one very specific problem. Many of the bad loans and fast cash advance products that contributed to the economic downfall came from a unique subset of lenders. While mortgage businesses were licensed, the lenders who worked at them were not required to be. 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 will be able to keep closer tabs.
Licensing needs relatively light
By addressing issues in the mortgage business, the new law does help, but some are worried it might not be enough. Most say the required 20 hours of training simply isn’t enough. Most state licenses require at least 75 hours of specialized training. The Nationwide Mortgage Licensing System and Registry is providing a search that will help you find a mortgage lender that has a license.
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